Need something better than your best FD promotion?
Latest update (10 August 2017): eEASY save168 has since been improved and relaunched as eEASY save which now offers multiple premium sizes to offer more flexibility to customers. Another latest development is the launch of EASY save series, which consists of eEASY save and eEASY savepro. eEASY save offers a guaranteed 2.02% p.a. return and 112% capital guarantee at maturity. On the other hand, eEASY savepro offers Etiqa’s highest return till date, projected at up to 4.02% p.a. with 100% capital guarantee at maturity.
Fixed deposits (FDs) need little introduction. Otherwise known as time deposits, FDs are known for being a relatively safe form of financial investment offered by banks, and FD interest rates have higher returns compared with typical savings accounts. The only caveat is that the deposit cannot be withdrawn for the length of the tenure to avoid incurring a penalty and to obtain the full interest return.
There are various tenures for fixed deposits, ranging from one month to a year, and up to 5 years. At the end of the tenure, an investor can choose to arrange for the interest and principal to be credited back to their savings or current accounts, or be placed in a new fixed deposit for another tenure.
If you’re a regular investor in FD and you’re about to place your next one, click here for a new alternative.
An interesting turn of events
Now, the range of safe investment options for such investors has expanded significantly, after the Monetary Authority of Singapore’s managing director Ravi Menon announced in November 2016 that insurers would be able to offer the “full suite of life insurance products online without advice”, as part of the MAS’ drive to support consumers’ growing demand for financial advice and insurance products to be offered online.
That means, investors who have excess funds would now be able to consider putting it into new insurance products being rolled out by insurance companies regulated by MAS, that have the same easy steps for application, not unlike placing a fixed deposit. In fact, they may even offer better returns than your best fixed deposit promotion.
A new option
First off, eEASY save168 offers a 2.02% guaranteed return per annum for a 6-year tenure. In comparison, the best FD rates offered by banks for a similar timeframe ranges from 1.00 to 1.50% per annum. If you have the funds available to set aside for eEASY save168, it has the potential to fast track your savings returns as compared to placing it in a conventional fixed deposit.
A fixed S$15,000 outflow payment is only required in the first 2 years, S$10,000 payable in the first year, and S$5,000 in the second. At the end of the 6th year, you will receive in return a guaranteed total lump sum payment of S$16,800.
The application process for eEASY save168 can be performed entirely via online, which is extremely convenient and hassle free. It can be completed in 5 simple steps which include: filling up an online application form, submitting key documents for identification like a scanned copy of your identity card, and arranging for payment to Etiqa Insurance.
An initial payment of S$1,000 will need to be made upon completing the online application, and can be done through credit card or debit card. The remaining S$9,000 of the first year premium should be made through FAST (Fast And Secure Transfers) within 14 days from the date of purchase. The second year premium of S$5,000 is payable through FAST or by cheque.
Gone are the days of going through insurance middlemen to buy life insurance, and having to go through piles of forms and tedious application procedures.
One of the in-built benefits is that during the tenure of eEASY save168, there will be a payout to the beneficiary of your choice in the event of death. This additional feature provides protection to your loved ones and ensures their financial well-being is protected.
Is this right for me?
eEASY save168 policyholders are automatically protected under the Policy Owner’s Protection Scheme, which is administered by the Singapore Deposit Insurance Corporation. Further information on the benefits that are covered under the scheme and the limitations of its coverage can be found at the Life Insurance Association’s website (www.lia.org.sg) and at SDIC’s website (www.sdic.org.sg).
On a more fundamental note, the main deciding factor for an investor to putting their money in a longer term financial investment product, lies in the trust they have for the company that underwrites it.
In this case, investors can rest assured since Etiqa Insurance is the underwriter of eEASY save168. Etiqa Insurance is the insurance arm of Maybank, the largest bank in Malaysia by asset size and with close to a century of operational history. Besides being the appointed insurer by the Singapore Housing and Development Board for basic fire insurance since 2009, the insurer has also been given an A- rating by Fitch Ratings which indicates that Etiqa has a stable financial profile with the ability to withstand economic shocks.
Investors should also carefully evaluate the key differences between a fixed deposit and the eEASY save168 offered by Etiqa Insurance. If you have excess cash reserves that you intend to save, and that you will not need to utilize in the next 6 years, eEASY save168 may be suitable for you.
Furthermore, the eEASY save168 is only going to be available for a limited time, so if the product has all the right features for your personal savings goals, you will need to act quickly and sign up here.