3 Months Review with Singlife! The Insurance Savings Plan that earns up to 2.0% p.a.!

If you have followed me for sometime, you will notice that I have a huge portion of cash in my portfolio.

I keep a lot of cash not because I can predict the next stock market crash and ready to cash in, nor I am unaware that cash is constantly eroded by inflation. . The cash are simply emergency savings for me and my family, shall anything happen (*touchwood), these cash reserves can last me for a few months while I look for another way out. 

Therefore, I have been seeking where I can park these cash to avoid erosion. The cash must be safely kept, liquid so I can withdraw anytime, and generate a sufficient return to beat or even out the inflation. 

My choices? Stashaway Simple and Singlife. 

We will leave Stashaway Simple for another time, today we’ll discuss about Singlife! 

Singlife Account!

In short, Singlife is an Insurance Savings Plan that offers return rate up to 2.0% per annum with capital guaranteed, no lock-in or fees, plus life insurance and retrenchment coverage. 

Here’s all the benefits and the details at a glance.

During July this year, I installed Singlife, deposited part of my emergency cash into it and just left it there since then.

Here’s my latest transaction.

By simple math, we can see that the monthly base returns are not close to 2.0%, but remember Singlife says us up to 2.0% per annum (and remember they do not guarantee the return). Let’s say I expect my S$2,000 to earn up to S$50 over a year (based on the 2.5% rate before 1st of November), now at average base returns of S$3.97/month over the past 3 months, we can see the rate is very much on track to deliver its promise. (S$3.97/month for 12 months would be S$47.64 a year!)

We can view our every day’s base return on the phone apps
(yup I’ve topped up another S$1,000.00 at the time of writing)

The return is calculated daily and credited monthly. We can access the account information on our phone apps anytime, and we will receive an email notification of our summarised transactions every month too!

Our top up or withdrawal can be done within minutes and will be reflected on our phone apps pretty quickly! So there is no worry if we are in need of cash urgently. (Up to the time of writing I did not make any withdrawal yet, this insight comes from my friend @thesmartadult who is also a Singlife user, and she has S$10k in it!)

A screenshot of the emails I received every month.

Singlife Card

Singlife Account also comes with a Singlife Visa Debit Card that allows us to spend worldwide with no FX fees or annual fees.

And although from 1st November 2020, Singlife has lowered its base rate from 2.5% p.a. to 2.0%, we can earn a bonus rate of 0.5% p.a. on our first S$10,000 by spending at least S$500 on this card!

Rock Bottom’s Verdict

Okay, 2.0% return (not guaranteed some more) is definitely not attractive to the most of us, but remember this is where I park my emergency cash reserve and Singlife is not an investment account or bank savings account or fixed deposit. Given its capital guaranteed, no lock-in or fees and no transactions required, this insurance savings plan serves my purpose and actually offers a rate much better than those bank accounts that either offer rate too low (my current POSB Payroll account only gives 0.05% p.a.), or require us to fulfill certain transactions to earn the rate as displayed. (Check out the post I made here)

The insurance features it carry is definitely a bonus, but in my opinion, an additional 5% on top of our account value in the event of death is far from sufficient (Life Insurance Association, LIA recommends that we should have protection coverage of about 10 times our annual income).

The Singlife card on the other hand, well since I am using this account to stash my emergency cash, I would prefer not to touch it at all. But if I am to use the card, I will deposit my estimated monthly expense into the account and spend using the card, this way I can earn that bonus 0.5% and is good way for budgeting too.

New sign-ups for the Singlife Account on hold with effect from 15 December 2020

Well yes, as Singlife is merging with Aviva, the application for Singlife Account is closed temporarily for now.

For existing policyowners, don’t worry, we will not be affected and can continue earning return of 2.0% p.a. on their first S$10,000 and 1.0% p.a. on their next S$90,000.

If you did not submit your Singlife Account application by 23:59 on 14 December 2020, you will need to put your names on the waiting list to be notified of when the app reopens for new customers in 2021. (paiseh I did not get to update you guys about this)

Okay now, how do we get started?

We can sign up via the Singlife App within minutes but first of all, Singlife Account is available for Singapore residents who are Singapore citizens, Singapore Permanent Residents or foreigners holding valid passes.

Next, make sure you have these on hands:

  • Your valid phone number to receive code via SMS
  • Your valid NRIC / FIN
  • Address proof (Singapore Residents holding FIN): bank statements or phone bills within 3 latest months

Then, download your Singlife App here

You can either sign up with MYINFO via SingPass (if you have) or manually. Simply follow the instructions and fill up the information and wait for approval.

Finally, fund your Singlife Account policy once your application has been approved. Remember a minimum S$500 is required to start earning up to 2% p.a. returns.

If you wish to know more, simply head to their official page, it is quite comprehensive!

*this is NOT a sponsored post

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