Savings are important, yes, but there are much better things to do with your money than leaving it to accumulate interest in the bank. With the recent economic downturn, many savings accounts have dropped their interest rates, and the current interest rates are nothing to shout about. In the meantime, you could be doing (and earning!) much more with your money. Here are 3 ways to make your money work for you, rather than leaving it in a bank.
This article is brought to you in partnership with Tiq by Etiqa Insurance.
Endowment Plans
Endowment plans tend to have higher premiums as they provide both insurance coverage and financial returns.
Many endowment plans tend to have a long commitment period, which may not be as suitable for those who need the money for a rainy day. However, if you’re looking for a lower-risk option, endowment plans are generally a good choice as they offer guaranteed and non-guaranteed returns!
Tiq 3-Year Endowment Plan has a short policy term of three years. With a high guaranteed maturity return of 1.62% per annum, it also offers life protection of 101% on a single premium. Put in any sum from S$10,000 to S$1,000,000. You can even buy multiple plans for yourself!
Example: Julie is saving for her first car. She gets the Tiq 3 Year Endowment Plan and puts in $30,000. At the end of three years, she receives a lump sum payout of $31,479.
Level: Beginner
Read more about Tiq 3-Year Endowment Plan here.
Insurance Savings Plans
An insurance savings plan isn’t the same as a savings account or fixed deposit. For one, it offers protection in the case of an unfortunate event. Secondly, it also offers much higher interest rates than your regular bank!
With Tiq Easy Save, you enjoy a guaranteed 2% per annum crediting rate for the first 6 years — one of the highest prevailing rates for any current insurance savings plans in Singapore.
Choose to deposit between $10,000 to $200,000 yearly for 2 years, or enjoy a 1.5% off 1st year premium saving when you make an upfront payment for both years! At the end of year 6, you can make a withdrawal without any charges, or you can opt to continue saving at prevailing market rates.
Example: Jordan has extra funds on the side and decides to save up for a rainy day. He decides to put in a total of $20,000 (he gets 1.5% off first year premium of $10,000), and the final premium payment comes up to $19,850.
At the end of six years, he decides to withdraw his money. He gets back a total of $22,389.
Level: Beginner
Read more about Tiq Easy Save here.
Investment-Linked Plans
Have you always dreaded investment because it’s always been stereotyped as being complex?
If you’re looking for potentially higher returns than a regular savings plan while having insurance coverage without long term locked-in commitment, we’ve got just the thing for you.
Combining insurance protection and investment with flexibility, a digital investment-linked plan (ILP) may be what you are looking for. With Tiq Invest, your investment journey will be a breeze — here’s how.
Choose from a selection of diversified investment packages depending on your risk appetite. Of course, unlike the prior two plans, this plan is much more flexible, offering no lock-in period and allowing for changes at any time. Top-up more money, and withdraw your investments anytime you want without penalty.
Worried about high management charge fees?Tiq Invest offers one of the lowest management charge fees 1 on the block, at 0.75% per annum2 on your account value.
As an added bonus, there’s 105% insurance protection in the event of death or terminal illness.
All it takes is just $1,000 to start investing! What’re you waiting for?
Ultimately, all investments do come with risks, and it is up to customers to make a conscious effort to read up and research which investment package to go for before fully committing.
Level: Intermediate
Read more about Tiq Invest here.
Plus, enjoy up to 30% savings and $10,000 worth of prizes if you sign up for any insurance plan this season, with Tiq’s PlenTIQful Christmas campaign!
1 Based on the available digital Investment-Linked Plan (ILP) as at 06 December 2021. This comparison does not include information on all similar products. Etiqa Insurance Pte Ltd does not guarantee that all aspects of the products have been illustrated. You may wish to conduct your own comparison for products that are listed in www.comparefirst.sg.
2 A fee that we charge for the management of your Tiq Invest policy.
Tiq Invest is an Investment-linked Plan (ILP) which invest in ILP sub-fund(s). Investments in this plan are subject to investment risks including the possible loss of the principal amount invested. The performance of the ILP sub-fund(s) is not guaranteed and the value of the units in the ILP sub-fund(s) and the income accruing to the units, if any, may fall or rise. Past performance is not necessarily indicative of the future performance of the ILP sub-fund(s).
A product summary and product highlights sheet(s) relating to the ILP sub-fund(s) are available and may be obtained from us via www.tiq.com.sg/product/tiqinvest. A potential investor should read the product summary and product highlights sheet(s) before deciding whether to subscribe for units in the ILP sub-fund(s).
Terms apply.
These policies are underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). Protected up to specified limits by SDIC. This content is for reference only and is not a contract of insurance. Full details of policy terms and conditions can be found in the policy contract. The information contained on this product advertisement is intended to be valid in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore.
As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you.
This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit theLife Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg).
Information is accurate as at 10 December 2021. This advertisement has not been reviewed by the Monetary Authority of Singapore.
Tiq by Etiqa Insurance Pte. Ltd.
A digital insurance channel that embraces changes to provide simple and convenient protection, Tiq’s mission is to make insurance transparent and accessible, inspiring you today to be prepared for life’s surprises and inevitabilities, while empowering you to “Live Unlimited” and take control of your tomorrow.
With a shared vision to change the paradigm of insurance and reshape customer experience, Etiqa created the strong foundation for Tiq. Because life never stops changing, Etiqa never stops progressing. A licensed life and general insurance company registered in the Republic of Singapore and regulated by the Monetary Authority of Singapore, Etiqa is governed by the Insurance Act and has been providing insurance solutions since 1961. It is 69% owned by Maybank, Southeast Asia’s fourth largest banking group, with more than 22 million customers in 20 countries; and 31% owned by Ageas, an international insurance group with 33 million customers across 16 countries.
