Should I use Singlife to get a higher return?

 

With Covid-19 still persisting, local banks have been lowering their interest rate (multiple times) this year due to the current low-interest environment. This includes high savings account like UOB One, DBS multiplier, and OCBC 360 account.

Before I started using Singlife, Standard Charted JumpStart Account was my go-to as it yields a relatively high return on 2% per annum. However, along with other banks in Singapore, it has revised its interest rate to 1% per annum from July 2020 onwards. 

While it was still considered a good return especially since you do not have to meet any spending criteria etc, I have since been on a hunt for better options out there and one of it was Singlife.

You may have heard of Singlife from the recent announcement to merge with Aviva on the news. However, have you heard of their Singlife Account?

I have been using Singlife since May 2020. I first started out with a small deposit of $500 as I was skeptical of the returns. However, after getting my interest for the month and trying out the withdrawal function, I was much more confident in it and started pumping in more money from my savings account. As of Sept 2020, I have around $8000 in it. 

One thing to note: While I consider Singlife to be a savings account, it is actually not. In fact, Singlife account is advertised as an insurance savings plan that provides a certain life insurance coverage.

So should you consider Singlife? Here are a few pointers you can look at to consider if it fits your financial goal.

1.  High return of 2.5% 2% p.a.
2. Flexible withdrawal
3. Insurance benefits
4. Singlife Debit Card
5. Trustworthiness of Singlife

1) High return of 2.5% 2% p.a.

As shown from the fig below, for the first $10,000 you deposit in the account, you will earn a return of 2.5% 2%p.a. Amount above your first $10,000 up to $100,000 will earn a return of 1% p.a. Any amount above that will generate no returns. Your return would then be calculated daily and credited to your account monthly. 

In my opinion, you should put up to $10,000 towards singlife as there are much better options out there like Standard Chartered JumpStart which can generate the same return. If you are loaded with cash, you can also look at Etiqa Elastiq and Singtel Dash EasyEarn.

*Do note that the returns are not guaranteed as Singlife Account is not a bank account or a fixed deposit. Instead, it is an insurance savings plan that earns interest for you.

* As of 1 November 2020, Singlife will be decreasing their interest rate from 2.5% to 2% p.a for the first S$10,000. If you would like to keep earning 2.5% p.a. returns for the first S$10,000, you have to spend at least S$500 on the Singlife Card per policy month.

2) Flexible withdrawal

Another feature of Singlife Account is that there is no lock-in. At any point in time where you require the money, you can easily withdraw via FAST or spend with their Singlife Card (more on that below) anytime, anywhere without incurring any fees. 

This is a plus point for me as unlike a fixed deposit, I can have access to my money anytime I needed it. I have tried this function over multiple occasions and it was seamless. It took less than 5min for your funds to be transferred back to your bank.

Of course, do note that you need to have a minimum of $100 in your account in order to continue earning interest.

3) Insurance benefits

As mentioned earlier, Singlife Account is an Insurance savings plan. Thus it comes with insurance protection. Here is a summary of the benefits you will get

• Life insurance coverage for death or terminal illness, up to 105% of your account value
• Retrenchment Coverage (Pay you a certain amount of money based on your average monthly Singlife Debit card spend if you are retrenched)

Looking at the insurance benefits, I feel that it is not comprehensive and should not be replaced with the other Insurance you might have.

4) Singlife Debit Card

When you sign up for a Singlife Account, it also comes with a Visa Debit Card where you can use it just like a normal debit card. For those who travel often, you may find this useful as there will also be zero FX fees imposed on your overseas purchases. I personally feel that there are other Credits and Debit cards out there that give you better deals in terms of CashBacks and Miles. So I do not foresee using my Singlife Card anytime in the future.

5) Trustworthiness of Singlife

This was one of the things I was concerned about prior to using Singlife. However, after looking up more information about Singlife, I can say Singlife is trustworthy. 

Singlife is a direct life insurer licensed by the Monetary Authority of Singapore (MAS). Additional, all your deposits in Singlife are protected up to specified limits by the Singapore Deposit Insurance Corporation (SDIC)

For the guys who have been through NS should have heard of Aviva. The recent announcement of Aviva Singapore and Singlife further cements its reliability.

How to apply

To conclude, Singlife Account is a great way for you to earn higher interest instead of letting it sit in your bank account. While there are other perks that come with the account, I feel the only determining factor is its interest rate.

If you have decided to get a Singlife Account, it is very easy to apply. You can either download the Singlife app from the Appstore or use my referral code to apply for a $10 bonus.

1. Click on the referral link (On your phone)
2. Install the Singlife App 
3. Create a Singlife ID
4. In-force your Singlife Account Policy 
5. Order your Singlife Visa Debit Card 
6. Activate your Singlife Visa Debit Card 
7. Receive your $10 bonus

Disclaimer: Both of us will receive a top-up of S$10 each into our SingLife Accounts

Thank you for reading all the way to here. I really hope this article has benefited you. Do look at my other posts that might interest you.