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Article Summary
1) Best Places to Park Your Savings
2) Robo-advisor and Broker Cash Management Accounts
3) Best Short-term Endowment Plans
Appendix 1: Singtel Dash Pet Details
Appendix 2: Singlife Account and Singlife Grow ILP Details
Appendix 3: Singtel Dash EasyEarn Details
Appendix 4: Etiqa GIGANTIQ Details
The InvestQuest’s View!
The best places to park your savings is in existing GIGANTIQ or Singtel Dash EasyEarn accounts, where you are still able to earn 1.8% – 2% p.a. return rates for the 1st year.
Alternatively, robo-advisor cash management accounts such as Syfe Cash+ and Endowus Cash Smart Ultra can also be considered, as they offer projected yields of 1.5% to 2% p.a., with no maximum account limits. The downside is that these accounts are subject to market fluctuations, are not guaranteed by SDIC and takes a few days to withdraw.
Note that the only Insurance Savings Accounts currently open to new subscribers are Singlife Account and Singtel Dash Pet. Our previously mentioned top contenders – GIGANTIQ and Singtel Dash EasyEarn, have all put a halt to new sign-ups (but you can still top up existing accounts).
Singlife has recently launched an investment-linked policy called Grow ILP. While the base terms are not particularly enticing, two stackable promotions make signing up for it look worthwhile, at least till 31 Dec 2021. More details in Appendix 2.
1) Best Places to Park Your Savings
Most important factors to consider
In selecting the best place to park emergency funds and savings, the most important factors to consider would include:
- Safety: Negligible risk to principal
- Highly Liquid: Able to withdraw the savings easily, with no penalties or restrictions
- Highest Returns: Competitive return rates with a preference that returns are guaranteed
- Account Limit: The higher the better. It would be easiest to park all your emergency savings in a single place
- Other Benefits: Some accounts include a “free” insurance element
We’ve chosen 1) Singtel Dash Pet, 2) Etiqa GIGANTIQ, 3) Singtel Dash EasyEarn, and 4) Singlife Account
In the below table, we show the first-year crediting rates of these savings plans.
Do note that for the moment, only Singlife Account and Singtel Dash Pet are open for new accounts. The other two have halted new account openings but you may still execute top-ups if you have an existing account.
Note for Singtel Dash Pet: For sign-ups from 27 April 2021, the crediting rate has been revised down from 1.7% to 1.3% p.a. for the first S$10k balance, and from 1.2% p.a. to 0.3% p.a. for the subsequent S$20k balance. Existing Dash PET users who have signed up before 27 April 2021 will continue to enjoy the earlier mentioned rates.
Note for Singtel Dash EasyEarn: With effect from 1 July 2021 or your first policy anniversary date, whichever is later, the crediting rate will be revised down from 1.8% p.a. to 1.2% p.a.
Note for Singlife Account: With effect from 1 July 2021, Singlife Account has reduced its crediting rate from 1.5% p.a. to 1.0% p.a. for the first S$10k, and from 1.0% p.a. to 0.50% p.a. for the next S$90k.
Note for GIGANTIQ: With effect from 19 November 2020, GIGANTIQ has reduced the return rate on the first $10k balance from 2% to 1.8% p.a. for new sign ups. Existing policyholders will still enjoy the previously announced 2.0% p.a. (1.0% p.a. guaranteed + 1.0% p.a. bonus). With effect from 1 August 2021, the projected crediting rate for the 2nd year onwards has been revised down from 1% to 0.7% p.a.
The best places to park your savings is if you have an existing GIGANTIQ or Singtel Dash EasyEarn account, where you are still able to earn a 1.8% – 2% p.a. return rates.
Currently, the available options for new account sign-ups are Singlife Account and Singtel Dash Pet.
Note that these are Insurance Savings Plan Accounts!
Note that these four options are all Insurance Savings Plan Accounts. They are technically not the same as a bank savings account or fixed deposit. However, we believe that they are suitable alternatives as they are very liquid, incur no penalties to surrender the policy, offer higher return rates than traditional banks but are still safe.
Notably, the shortlisted options are covered by the Policy Owners’ Protection (PPF) Scheme administered by Singapore Deposit Insurance Corporation (SDIC), up to a surrender value S$100K and aggregate sum assured of S$500K per life assured per insurer. This is similar to how your bank deposits are insured, up to a cap.
2) Robo-advisor and Broker Cash Management Accounts
Here’s a list of cash management accounts and their updated projected yields.
Assuming the same return rate, we would prefer insurance savings accounts (GIGANTIQ, Singtel Dash EasyEarn / Pet, Singlife Account) as they are guaranteed by SDIC and withdrawals are generally quite fast.
In contrast, robo-advisor and broker cash management accounts are NOT guaranteed by SDIC, are subject to market fluctuations and typically takes between 1-6 days for withdrawals.
However, robo-advisor cash management accounts do offer a competitive projected yield of up to 2% p.a., and would be suitable as 2nd tier emergency funds, particularly for amounts that are in excess of the maximum account limits for the earlier mentioned insurance savings accounts.
Our preferred cash management accounts are currently:
- Syfe Cash+ for its lowest all-in fees of 0.05% p.a., such that the net projected yield is 1.5% p.a. (see our product review here)
- Endowus Cash Smart Ultra with the highest net yield of 1.7% – 2.0% p.a., after its all-in fees of 0.35% p.a. (use our referral code to get $20 off your Endowus management fees)
Below are the links to the cash management product webpages, if you are keen to find out more details and the latest published yields.
- Endowus Cash Smart (Core / Enhanced / Ultra)
- FSMOne Auto-Sweep
- MoneyOwl WiseSaver
- Phillip SMART Park
- Stashaway Simple
- Syfe Cash+
3) Best Short-term Endowment Plans
For individuals looking to build a savings fund in excess of the account size limits from our earlier shortlisted options, short-term endowment plans may also be considered.
Below are the links to the product webpage, if you are keen to find out more details.
Alternatively, individuals may also consider resale endowment policies.
These are policies that have been incepted earlier and sold to a third-party, and offers a higher projected return with a shorter time to maturity than newly incepted policies.
Here’s the inventory from our sister site Endowment Exchange, for an indication of the projected returns for such policies (see rightmost column in below table). The projected returns would be 1.5x to 2x that of newly incepted policies of similar tenor. Details of each policy may be found on this page.
The InvestQuest’s View!
The best places to park your savings is in existing GIGANTIQ or Singtel Dash EasyEarn accounts, where you are still able to earn 1.8% – 2% p.a. return rates for the 1st year.
Alternatively, robo-advisor cash management accounts such as Syfe Cash+ and Endowus Cash Smart Ultra can also be considered, as they offer projected yields of 1.5% to 2% p.a., with no maximum account limits. The downside is that these accounts are subject to market fluctuations, are not guaranteed by SDIC and takes a few days to withdraw.
Note that the only Insurance Savings Accounts currently open to new subscribers are Singlife Account and Singtel Dash Pet. Our previously mentioned top contenders – GIGANTIQ and Singtel Dash EasyEarn, have all put a halt to new sign-ups (but you can still top up existing accounts).
Singlife has recently launched an investment-linked policy called Grow ILP. While the base terms are not particularly enticing, two stackable promotions make signing up for it look worthwhile, at least till 31 Dec 2021. More details in Appendix 2.
Appendix 1: Singtel Dash Pet Details
Who is Singtel owned by?
Singtel is 52.5% owned by Temasek Holdings. The Singtel Dash Pet policy is underwritten by ETIQA, the insurance arm of Maybank.
Singtel Dash Pet: Base Return rate
| Return Rate (for sign-ups from 27 Apr 2021) | First $10k: 1.3% p.a (guaranteed) Amounts >$10k: 0.3% p.a (guaranteed) |
| $10K Deposit 1st Year Return | 1.3% |
| $20K Deposit 1st Year Return | 0.8% |
| $50K Deposit 1st Year Return | Account Limit of $30k |
Note: For sign-ups from 27 April 2021, the crediting rate has been revised down from 1.7% to 1.3% p.a. for the first S$10k balance, and from 1.2% p.a. to 0.3% p.a. for the subsequent S$20k balance. Existing Dash PET users who have signed up before 27 April 2021 will continue to enjoy the earlier mentioned rates.
Singtel Dash Pet: Bonus Return Rate
You can now receive additional interest on the first S$10,000 of your Dash PET account value for the first year, if you choose to add on insurance coverage:
- For selected Dash PET policyholders: +0.2% p.a. when you opt in to complimentary add-on protection. Worth opting in if you have been targeted, since there’s no extra cost.
- For all Dash PET policyholders: Up to +0.25% p.a. for each activated paid add-on protection. There are 3 riders in total that can be added on – “Major Cancer”, “Death & Total and Permanent Disability”, “Accidental Death”.
Singtel Dash Pet: Other Key Terms
| Withdrawal Restrictions | ● Withdrawal to Dash Wallet: No penalties ● Withdrawal to Bank: $0.70 per transaction |
| Account Size (min and max) | $50 – $30k |
| Age Restrictions | 17 – 75 |
| Insurance Payout | Death: 105% of Account value |
While the Policy officially matures just prior you turn 100 years old, there is no surrender penalty.
Singtel Dash Pet’s product terms may be found here.
Appendix 2: Singlife Account Details
Who is Singlife owned by?
Singlife is a digital insurer owned by Sumitomo Life, Aberdeen Standard Investments, Aflac Inc (a US-listed insurance company with US$35 billion market cap) and IPGL (Holdings) Ltd.
Singlife Account: Base Return rate
| Return Rate from 1 July 2021 | First $10k: 1.% p.a Next $90k: 0.5% p.a Amounts >$100k: 0% p.a |
| Bonus Return Rate (see below for details) | Up to 1% p.a for the relevant policy months |
| $10k Deposit 1st Year Return | 1.0% |
| $20k Deposit 1st Year Return | 0.75% |
| $50k Deposit 1st Year Return | 0.60% |
Note: With effect from 1 July 2021, Singlife Account has reduced its crediting rate from 1.5% p.a. to 1.0% p.a. for the first S$10k, and from 1.0% p.a. to 0.50% p.a. for the next S$90k.
Singlife Account: Other Key Terms
While the Account’s Policy Term is 1 year (it auto-renews annually), there is no penalty for partial withdrawals or a full surrender at any time. Returns are earned on a daily basis and credited to the account monthly. Hence in practice, it works just like a Bank Savings Account!
| Withdrawal Restrictions | None |
| Account Size (min and max) | From $500 |
| Age Restrictions | 18 – 75 |
| Insurance Payout* | Death/Terminal Illness: Up to 105% of Account Value Retrenchment: Up to $10k, if >4 mths unemployed |
Singlife Account’s product terms may be found here.
Spend $500/mth to receive 0.5% Bonus Return Rate: Why I Would Give it a Miss
- The bonus return rate is applied only to the first $10k of your Singlife Account deposits. This means that if you have $50k of deposits, only $10k of it is eligible for the extra 0.5% return rate.
- To be eligible, you are required to spend at least $500 on your Singlife Debit Card in the previous “Policy Month” (see this page for details on how to determine your policy month).
- Note that 0.5% additional return rate on $10k works up to $4.17 a month, or 0.83% on a $500 base. You would likely be better off using a credit card for cashback or points accrual, since the “earnings rate” is likely to exceed 0.83%.
- Bonus return rate promotion runs from 1 November 2020 to 31 December 2021
Decent Sign-up Promo for Singlife’s Grow ILP: $30 Referral Bonus + 0.5% Bonus Return Rate (till 31 Dec 2021)
- What is Singlife Grow? It is an Investment Linked Policy (ILP) that buys into a portfolio of unit trusts (which charges its respective fund management fees), and you will be charged an additional 0.25% management fee per quarter by Singlife on top of that.
- Insurance coverage: Receive the higher of 101% of your Net Premiums or your Account Value, in the event of death or terminal illness.
- Initial thoughts weren’t positive: If you are paying 0.25% per quarter in Singlife fees, to get insurance coverage of 101% of premiums paid in the event of death/terminal illness…it implies that you need to make an insurance claim within a year (touch wood) while the market is tanking, for you to be relatively better off than using lower-cost fund platforms, be it Endowus or Dollardex or POEMs.
However, there are two stackable promotions that make signing up for a Singlife Grow ILP look compelling, at least till 31 Dec 2021. Without which, we would suggest giving Singlife Grow a miss.
- You need to have a Singlife Account to sign up for a Grow ILP. If you don’t have a Singlife Account yet, you can apply using our referral link to earn us both a $5 credit. Note that you will need to opt-in and activate the no-fee Singlife Visa Debit Card to earn this rebate (see this page for referral benefit terms).
- The two Grow ILP promotions include:
- Earn $30 referral fee (for both the referrer and referee), for successful funding of the referee’s first Singlife Grow Policy with S$1,000 or more. See this page for details for the promo.
- Additional 0.5% p.a. return rate for the first $10k of your Singlife Account deposits. See this page for details of the promo.
- Here’s the steps to be eligible for the $30 referral promo (with some screenshots taken below for reference, assuming you are already inside the Singlife app):
- Click on our referral link or key in our referral code “LUrFqohr” (if you are logged into the app already) via mobile.
- Log in to your Singlife App
- Apply for your first Singlife Grow Policy
- Fund the your first Singlife Grow Policy
- Your first Singlife Grow Policy is in-forced
- Note that the S$30 referral bonus is credited to your Singlife Account and there is no min holding period. As there is no penalty to terminate the Singlife Grow policy and no clawback of the referral bonus, it’s theoretically possible to terminate the ILP upon receipt of the $30 referral bonus (which is credited almost immediately after the policy is in-force).
- Pro tip: Top-ups to Singlife Grow code as Insurance spending (an excluded category from earnings points for most credit cards), so the best options to accrue points from the top-up is via Amex SIA Business Card, UOB Absolute Cashback Amex Card or Amex Cashback Card.
Appendix 3: Singtel Dash EasyEarn Details
Who is Singtel owned by?
Singtel is 52.5% owned by Temasek Holdings. The Singtel Dash EasyEarn policy is underwritten by ETIQA, the insurance arm of Maybank.
Singtel Dash EasyEarn: Return rate
| Return Rate From the later of 1 July 2021 or 1st policy anniversary date | 1.2% p.a (guaranteed) |
| $10K Deposit 1st Year Return | 1.2% |
| $20K Deposit 1st Year Return | 1.2% |
| $50K Deposit 1st Year Return | Account Limit of $20k |
Note: With effect from 1 July 2021 or your first policy anniversary date, whichever is later, the crediting rate will be revised down from 1.8% p.a. to 1.2% p.a.
Singtel Dash EasyEarn: Other Key Terms
While the Policy officially matures just prior you turn 100 years old, there is no penalty for a full surrender at any time (you just pay a small transaction fee if you are transferring the deposits to your bank account).
| Withdrawal Restrictions | ● Withdrawal to Dash Wallet: No penalties ● Withdrawal to Bank: $0.70 per transaction |
| Account Size (min and max) | $2k – $20k |
| Age Restrictions | 17 – 75 |
| Insurance Payout | Death: 105% of Account value |
Singtel Dash EasyEarn’s product terms may be found here.
Appendix 4: Etiqa GIGANTIQ Details
The main plus of GIGANTIQ is the maximum account size limit of $200k, which is more generous than Singtel Dash EasyEarn and Singtel Dash Pet (deposits capped at $20k and $30k respectively) and Singlife Account (no return rates are given for deposits over $100k).
The main downside is that some fees are charged for deposit withdrawals, which makes it less flexible. This may be less of a concern if you are planning to just park your money there with no immediate plans to use.
Etiqa GIGANTIQ: Return rate
| Return Rate for sign-ups from 19 Nov 2020 | First Year: 1.8% p.a on first $10k, 1% p.a on the balance exceeding $10k Subsequent Years: Prevailing rate, projected at 0.7% p.a |
| $10K Deposit 1st Year Return | 1.80% |
| $20K Deposit 1st Year Return | 1.40% |
| $50K Deposit 1st Year Return | 1.16% |
Note: With effect from 19 November 2020, GIGANTIQ has reduced the return rate on the first $10k balance from 2% to 1.8% p.a. for new sign ups. Existing policyholders will still enjoy the previously announced 2.0% p.a. (1.0% p.a. guaranteed + 1.0% p.a. bonus).
With effect from 1 August 2021, the projected crediting rate for the 2nd year onwards has been revised down from 1% to 0.7% p.a.
Etiqa GIGANTIQ: Other Key Terms
While the Policy term is officially 1 Year, it is auto-renewed on maturity. There is no penalty for a surrender at any time but a small transaction fee will be charged if you are withdrawing deposits.
| Withdrawal Restrictions | Withdrawal via PayNow: $0.70 per transaction Withdrawal to DBS Bank Acct: $0.50 per transaction |
| Account Size (min and max) | $50 – $200k |
| Age Restrictions | 17 – 75 |
| Insurance Payout | Death: 105% of Account value |
GIGANTIQ’s product terms may be found here.
Great compilation of information, saving me a lot of time to research. Have gone ahead to register for Elastiq and Singlife with your referral codes (already maxed out on Singtel Dash before I came across your article).
However, might want to indicate that the Singlife interest is non-guaranteed. Might influence the decision for some people.
Thank you Justin for the kind comments and feedback.
I have included an extra note for the non-guaranteed interest for Singlife Account, so as to avoid any misunderstandings. Thanks again and have a great evening!
Hey IQ, thank you so much for the compilation.
I wonder if you have considered Unit Trusts that buys into short term bonds that pay out dividends. Granted, it will not be as liquid as those options that you have mentioned. But I thought if one can stretch the withdrawal time slightly to say up to 10 working days (aka 2 weeks) but be given a relatively higher interest in returns in the form of dividends.
some products I have came across including Eastsping’s Investment Funds – Monthly Income Plan (thru FSM One giving up to 5% p.a.) or Silverdale Bond Fund (thru Kristal AI giving up to 8% p.a. for the past three years).
Of course, there is no guaranteed dividend yield just like none of the above (less the endowment funds) give you guarenteed interest given that they can adjust the expected interest with advance notice at any point in time.
I might be wrong. Do share with me what do you think? (:
Hi Jason,
Thank you for the question!
If you have a longer-term horizon, you probably won’t want to be putting all your savings in the Insurance Savings Plans / Cash Management Accounts mentioned in this article, which have very low level of risk (commensurate with the relatively low but sometimes guaranteed returns). So it is right for you to be looking at higher returning assets for the savings in excess of your emergency needs.
For the two funds you mentioned, the risk is quite a bit higher.
1) Eastspring Monthly Income Plan
– Current exposure is around 30% Investment Grade Bonds (BBB rated or better), 6% in stocks and the remaining ~60% in High Yield Bonds (BB rated or below).
– For bonds, your long-term returns will be capped to the bond portfolio’s yield to maturity, which is more or less translated to the 5% income you will be getting.
– However, you do need to take into account the risk of principal loss due to bond defaults (which will permanently pull down the fund’s NAV), especially with the such a large proportion of the fund invested in High Yield Bonds.
– On average, High Yield Bond default rates across an economic cycle is 3-4% per year, of which you will likely be able to recover 40% of a defaulted bond’s value. This means you have to factor in at least (60% High Yield Bond exposure * 4% default rate * 60% default loss = 1.4% expected principal losses per year) for the High Yield component of this fund.
– So it is prudent to adjust down your return expectations lower than the 5% yield that the fund is giving, perhaps to a 3-3.5% per annum range from this point on.
– For context on the level of risk for the fund, the peak to trough NAV pullback in Feb-Mar this year was -18% (it has recovered about 2/3 of this decline since).
2) Silverdale Bond Fund
– Exposure is approx 70% Investment Grade and 30% High Yield.
– They generate slightly higher yields because half the bonds are from China and Indian companies.
– Also note that the gross yield to maturity of the fund is now 4.67% (or 4.17% net after you deduct off the fund’s 0.5% management fee).
– So you might consider managing down your annual return expectations to perhaps: 4.17% minus the expected annual bond default losses.
– For context on the level of risk for the fund, the peak to trough NAV pullback in Feb-Mar this year was -29% (it has recovered about 60% of this decline since).
The Etiqa ELASTIQ does guarantee a 1.8% per annum interest for the first 3 years, and can be surrendered during this time with no penalty (i.e. you still get to keep the interest that has been accrued). So I think it’s a pretty good trade-off.
Hope this helps!
Thank you so much for your sharing! (:
I learnt a lot from your explanation.
It’s my pleasure. All the best with your investing journey!
Hi, given that ETIQA Elastic is now fully subscribed. Where would you suggest to place $50k for a period of 2-3 years?
Hi K, apologies for the lag reply.
I would go for Singlife Account.
At S$50k, the blended interest rate for Singlife would be 1.3% p.a (slightly higher than GIGANTIQ’s blended 1.2% p.a) and there are no charges for withdrawals (vs GIGANTIQ which charges some fees).
I noticed that PolicyPal is also going to launch a new Savings Insurance Plan (2% p.a interest rate is what it is being marketed at). I have included the link to their Google Form below, for indications of interest.
https://docs.google.com/forms/d/e/1FAIpQLSerTbYezsTXyChNMcY8hf7PLGEi6S6ChOblkIkUqvY8sELo-A/viewform
Hi
Could you please explain about the Policypal credits ? is this cash rebate ?
Hi Pauleen, PolicyPal credits is the rewards points given by PolicyPal.
It can can be used to redeem Cash, Vouchers (NTUC, Grabfood) or for Charitable Donations (you can choose between Migrant Workers’ Assistance Fund, Singapore Cancer Society, Children’s Cancer Foundation, St Luke’s ElderCare Ltd, Apex Day Rehabilitation Centre for Elderly, AWARE).
The redemptions come in various denominations, the lowest redemption starts at 15 credits for a $10 NTUC voucher, while the largest redemption is 1000 credits for $1000 cash rebate.
I have a section written on it in the below link’s Appendix section if you are keen to find out more.
https://theinvestquest.com/apply-for-etiqa-gigantiq-using-policypal-receive-up-to-2-p-a-interest-rate-up-to-8-rebate-in-policypal-credits/
Hi, I dropped a note in your Gigantic article and not sure if it was appropriate for you to comment there. As I wrote, I managed to open an Elastiq account earlier and have $100k in there. I have an additional $50k; it seems to make more sense to just top up Elastiq account rather than use any of these other options; given that I will receive 1.8% PA for it. The only downside I see is that above $100k, I will no longer be covered under SDIC. Did I miss out anything?
Hi K,
I too have an Etiqa ELASTIQ account. It was a good deal.
From my understanding, only the initial premium’s 1.8% p.a. interest is guaranteed. The interest rate for top ups is based on the prevailing market conditions, which is up to Etiqa’s discretion. I have extracted the relevant part of the policy’s provisions below for reference (last sentence is most relevant):
“For the initial single premium, the crediting rate for the first 3 years from the Policy commencement date is guaranteed and fixed at the crediting rate determined by us on the Policy commencement date. You may refer to the Policy Illustration for the guaranteed crediting rates for the first 3 years from the Policy issue date. For subsequent years, the crediting rate will be determined by us based on the prevailing rate, subject to the minimum guaranteed crediting rate of 0% p.a. which ensures that your capital is fully guaranteed each year.
For any Top-up(s) made, the crediting rate will be determined by us based on prevailing market conditions. We reserve the right to revise the crediting rate for Top-up(s) from time to time.”
So, while it’s a hassle to create a new GIGANTIQ or Singlife account, at least you have better assurance of the rates you will be getting.
Thanks you for your reply. Does this mean if the top up rate at the moment is 1.8% and I top up $50k; the interest rate for this $50k will not be 1.8% for the entire period. (3 years based on the first initial deposit).
Is this what you understand?