Much like Singlife Account, the ELASTIQ isn’t technically a savings account. It is a special type of insurance that tries to replicate a savings account.
Given the fact that banks have been cutting interest rates recently, if something swims like a duck and quacks like a duck, I wouldn’t mind if it waddles a little differently from other ducks as long as I get some decent returns.
Details and features
|Returns||– 1.80% pa|
– 0.30% bonus every 3 years
|Tenure||3 years guaranteed rate|
90 days lock-in
|Other Features||Death benefit of 106.8% of account value|
Sign up as a new Etiqa customer using my code R161521 for sign-up reward (read on for more details).
At 1.80% pa, ELASTIQ might not be superior to Singlife’s 2.50% pa, but where it falls short on interest rate it more than makes up for in terms of capacity – you can enjoy 1.80% pa on up to $200,000 of your savings.
To optimise your returns, simply place $10,000 in Singlife Account for 2.5% pa, and any excess into this.
Guaranteed rates without long lock-in
Unlike Singlife Account which can change its interest rate any time, the interest rate of 1.80% pa is guaranteed for three years. Customers disgruntled with DBS, OCBC, UOB, and StanChart for cutting their rates would appreciate such a guarantee.
More impressively, ELASTIQ guarantees the interest rate without locking in your savings for years. The only lock-in period is 90 days after the policy issue date.
This means that if you are uncomfortable with your money being locked up for even 90 days, you could start the policy with $5,000, and then start to put more in once the 90 days is up. Update: the 1.80% pa is guaranteed only for the first amount you place.
Now even if you don’t feel like 1.80% pa is an attractive rate now, it’s not too bad an idea to set aside some money in this to lock in the rate for the next three years in the event interest rates continue to plummet.
Essentially, there is very little downside to putting your savings here. If interest rates increase, you can pull out your savings. If not, you have locked in a interest rate you can enjoy for the next three years.
Moreover, you get an additional 0.30% bonus reward every 3 years based on the average balance over the 36 months. That pushes up the 1.80% pa rate ever so slightly.
The policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). It insures S$100,000 for aggregated guaranteed surrender value per life assured per insurer.
ELASTIQ is compelling enough on its own, but it’s a much sweeter deal if you sign up as a new Etiqa customer using my code R161521. You get 0.5% of your first premium in credits that you can use to purchase home, accident, and travel insurance from Etiqa. Placing $10,000? You get $50 for your next travel insurance, and your $10,000 can be fully withdrawn after 90 days if you so desire.
Even more, you get up to $100 in credits that you can withdraw as cash! It’s an excellent deal, and is good until 31st July.
|Total Premiums Paid||Non-encashable Credits||Encashable Credits|
|$5,000 to $9,000||0.5% of premium||–|
|$10,000 to $25,000||0.5% of premium||$50|
|$26,000 to $50,000||0.5% of premium||$100|
The application is very painless, especially if you use SingPass MyInfo. My policy was successfully applied for in less than 5 minutes, including the time it took me to get my banking app out to transfer the funds.
Have quite a bit of savings to place?
If you are intending to place an initial amount ranging from more than $50,000 to $500,000 at the start of the policy, please leave a comment with your contact details (will not be publicly shown). The advantage is that you will get a much higher amount with guaranteed 1.80% pa since the crediting rate is not guaranteed on subsequent top-ups.
Keep up to date on the best cashback/mile cards, savings accounts, attractive deals, and more tips to maximise your financial wellbeing by subscribing to my Telegram channel. You can also ask questions in the chat!
Want easy money? Check out July’s promos here!
Even if you don’t currently think that 1.80% pa is an attractive yield, ELASTIQ is a safety net against falling interest rates. There is no obligation to keep your funds in this beyond the first 90 days, and given the falling bank rates, this is a no-brainer product to apply for, even if you don’t see an immediate need for it.
- Decent interest rate of 1.80% pa with 0.30% loyalty bonus
- Interest rate is guaranteed for 3 years
- No lock-in beyond the first 90 days from policy issue date
- High capacity of $200,000
- Death benefit of 106.8%
- Withdrawals and top-ups are in multiples of $500 only
- $5 service fee if average daily account value is under $5,000
- I simply cannot think of an ugly downside to this policy