Endowment plans vs Deposit accounts?

[ahboi95]

Hi guys any advise? Was looking at Etiqa the savings plan, the guaranteed returns 2.46% de. When i compare with others like deposit acc aor SSB this one like not bad? Couldnt fnd other plans better so far that has guaranteed returns!

Fyi some details about myself:-
1. Just started working 1.9k take home pay
2. Card spending depends average $300-400 a month
3. Not paying anything via GIRO
4. Got investment but 1k like that nia in SCB

So base on 1 and 2 already hard for those deposit accounts like OCBC 360 or UOB One etc. So if say excluding investments, just comparing endowmmebt or deposit account or SSB, the 2.46% is a good deal right?

Any advice would be appreciated thanks!

 

[moejoseph]

Hi guys any advise? Was looking at Etiqa the savings plan, the guaranteed returns 2.46% de. When i compare with others like deposit acc aor SSB this one like not bad? Couldnt fnd other plans better so far that has guaranteed returns!

Fyi some details about myself:-
1. Just started working 1.9k take home pay
2. Card spending depends average $300-400 a month
3. Not paying anything via GIRO
4. Got investment but 1k like that nia in SCB

So base on 1 and 2 already hard for those deposit accounts like OCBC 360 or UOB One etc. So if say excluding investments, just comparing endowmmebt or deposit account or SSB, the 2.46% is a good deal right?

Any advice would be appreciated thanks!

Before looking at savings or investment, do u have any basic protection coverage? Because of anything is to happen (touch wood), without basic protection, savings and investment will be rendered "useless"

 

[BBCWatcher]

Simple fixed deposit-like endowment plans can be good deals for what they are. If you happen to be saving for some future expense that falls just after the endowment plan term, that works. For example, if it's a 3 year endowment plan, and if you're going to get married 3 years from now and need a few dollars for a wedding, great, that lines up nicely.

However, endowment plans are not good for holding emergency reserve funds because they're not really designed to be liquid. They are also not what a young adult (which I assume you are) should be using for a long-term savings portfolio.

 

[Maeda_Toshiie]

Hi guys any advise? Was looking at Etiqa the savings plan, the guaranteed returns 2.46% de. When i compare with others like deposit acc aor SSB this one like not bad? Couldnt fnd other plans better so far that has guaranteed returns!

Fyi some details about myself:-
1. Just started working 1.9k take home pay
2. Card spending depends average $300-400 a month
3. Not paying anything via GIRO
4. Got investment but 1k like that nia in SCB

So base on 1 and 2 already hard for those deposit accounts like OCBC 360 or UOB One etc. So if say excluding investments, just comparing endowmmebt or deposit account or SSB, the 2.46% is a good deal right?

Any advice would be appreciated thanks!

The right instrument for the right purpose. You should figure out what you intend to do with money first, then decide on what tool to employ.

 

[Geeezz]

2.46% guaranteed. how nong ish the lock in period?

 

[audiovideo]

Hope my tokio marine will work like it promise

 

[bright_84]

2.46% guaranteed. how nong ish the lock in period?

20 years?.

 

[BBCWatcher]

20 years?.

It’s 6 years for this particular Etiqa plan (2.46% guaranteed by the insurer). So it’s like a 6 year fixed deposit.

That’s not a great offer. Singapore Life is currently offering 2.5% on a 5 year plan, for example.

These products are probably not appropriate for the original poster, a young adult, unless he/she is trying to save for a specific future expense that happens to coincide with the endowment plan term.

 

[ahboi95]

Before looking at savings or investment, do u have any basic protection coverage? Because of anything is to happen (touch wood), without basic protection, savings and investment will be rendered "useless"

yeap! i have other insurance plans with AIA hahaha but probably should review them soon again!

Simple fixed deposit-like endowment plans can be good deals for what they are. If you happen to be saving for some future expense that falls just after the endowment plan term, that works. For example, if it's a 3 year endowment plan, and if you're going to get married 3 years from now and need a few dollars for a wedding, great, that lines up nicely.

However, endowment plans are not good for holding emergency reserve funds because they're not really designed to be liquid. They are also not what a young adult (which I assume you are) should be using for a long-term savings portfolio.

Yea i was not planning on using the funds that i will be putting in endowment plans as i understand that they have a lock-in period. The funds i will be putting in would be those i deem as "spare" funds after taking into account short term future needs and emergency funds So was looking for any alternatives that would be great at holder them for the longer term

The right instrument for the right purpose. You should figure out what you intend to do with money first, then decide on what tool to employ.

The money that i'm planning to put into the plans would be those that are to be kept for longer term i guess! Any long term yet guaranteed returns higher than the usual bank deposit rates!

It’s 6 years for this particular Etiqa plan (2.46% guaranteed by the insurer). So it’s like a 6 year fixed deposit.

That’s not a great offer. Singapore Life is currently offering 2.5% on a 5 year plan, for example.

These products are probably not appropriate for the original poster, a young adult, unless he/she is trying to save for a specific future expense that happens to coincide with the endowment plan term.

Oh wow i didnt know there was a Company such as Singlife! Their 3 years plan looks alright too for my wedding funds hahah

 

[BBCWatcher]

Yea i was not planning on using the funds that i will be putting in endowment plans as i understand that they have a lock-in period. The funds i will be putting in would be those i deem as "spare" funds after taking into account short term future needs and emergency funds So was looking for any alternatives that would be great at holder them for the longer term

Fixed deposit-like endowment plans are not appropriate for a young or mid-career adult’s long-term savings. You should be looking at a low cost stock index fund for long-term savings to augment your current cash and bond heavy position.

Oh wow i didnt know there was a Company such as Singlife! Their 3 years plan looks alright too for my wedding funds hahah

An expense you expect to incur in 3 years is not long-term. Retirement is long-term.