Bank deposit interest rates are rapidly going south, and insurers are stepping up to woo your savings. It’s about time we coined a name for such policies, and a few of us seem to think that Insurance Savings Account (ISA) makes sense.
Of course, take note that they aren’t bank savings accounts, but are instead insurance policies that emulate savings accounts. We shall take a look at three popular ISA available and weigh the pros and cons of each of them.
|Singlife Account||Etiqa Elastiq||Dash EasyEarn||Winner|
|Interest Rate||2.50% pa||1.80% pa||2.00% pa||Singlife|
|Guaranteed Tenure||None||3 Years||1 Year||Elastiq|
|Withdrawal||Any amount||Multiples of $500|
(after 90 days)
|Multiples of $100|
You may wish to read the individual reviews:
Read to the end of this article for the overall winner!
The middle ground option: Dash EasyEarn
You would notice that Dash EasyEarn doesn’t win any category, but if you look at what it offers in each category, it holds up pretty well on its own. It doesn’t have the highest interest rate, but a nice round 2.0% pa is decent in these times we live in. It doesn’t have the highest capacity, but $20,000 is at least double of Singlife’s paltry $10,000. It doesn’t offer full withdrawal flexibility, but multiples of $100 isn’t too restrictive.
Unfortunately, being the middle ground option also makes it a little tricky to choose this over one of the other two choices. If I placed money here instead of Singlife’s offering, I’m better off only if Singlife drops its interest rate below 2.0% pa over the next year. If I chose this over Elastiq, I am better off only if EasyEarn continues with the higher interest rate beyond the first year for two more years.
Instead of being the Goldilocks option of being just right, I think most people would pass this over in favour of Singlife Account and/or Elastiq.
Sign up: Singtel Dash app (use code DASH-L72MK when you sign up for Dash)
Short term? 2.5% pa is hard to beat: Singlife Account
If you are putting aside money for a relatively short term, Singlife Account’s 2.5% pa is hard to beat. It is about as high a rate as you can get for a near risk-free product, and the liquidity is also the closest to that of a bank account.
Alas, $10,000 is a pretty low cap if you have substantial amounts of savings. Also, given how interest rates have fallen dramatically in recent months, it is obvious that 2.5% pa is not long for this world, and you may want to instead lock in a decent interest rate for a long tenure, rather than get a better interest rate that is going to be lowered sooner rather than later.
Overall winner: Elastiq
Elastiq has the lowest return at 1.80% pa, but this isn’t too far off from Dash EasyEarn’s 2.0% pa. Practically speaking, it also isn’t too far off from Singlife’s 2.5% pa rate, especially when you consider that Singlife offers this high rate only for $10,000 of savings.
In return for a lower rate, Elastiq offers a much roomier $50,000 capacity for your savings, and also guarantees the 1.80% pa for the next three years of your starting amount. There is simply no telling where Singlife’s 2.5% pa is headed, even for the next 3 to 6 months.
Moreover, Elastiq is the only product that currently offers a sign-up reward: get either $50 or $100 of credits you can withdraw as cash, on top of 0.5% of your initial premium in credits you can use towards another insurance policy if you use my code R161521. It is really an attractive deal for what is a very good product, and this will last until 31st July 2020.
Sign up: click here (use code R161521 for bonus credits)
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