Get 2.5% P.A. Interest on First $10,000 With Singlife (Withdraw Anytime!) - Free Debit Card With No FX Fees

In light of the current business environment, businesses have started to scale back on promotions and banks too have begun to cut back on interest rates. Closer to home, OCBC Bank will be reducing the Effective Annual Rate (EAR) on the 360 Account from 3.35% p.a. to 2.15% p.a. from 01 July 2020. If you are looking a new avenue to park some of your savings, Singlife (a direct life insurer licensed by the Monetary Authority of Singapore) is offering up to 2.5% p.a. interest on your first S$10,000.

Get up to 2.5% p.a. interest and free life insurance with Singlife!

Photo Credit: Singlife

Unlike typical a typical bank savings account or a fixed deposit, the Singlife Account is a capital-guaranteed insurance savings plan that gives up to 2.5% p.a. returns on the first S$10,000 (the next S$90,000 accrues up to 1.0% p.a. interest). The free Singlife Account also comes with free life insurance coverage and retrenchment benefits that you do not have to pay for (so there is no reason not to enjoy them!). Additionally, you can also opt for a complimentary Singlife Visa Debt Card that charges no FX Fees (for non-SGD transactions) and no annual fees.

2.5% P.A. Interest Rate with Singlife - Free Withdrawals (No Lock-in)

For me personally, the best part of the Singlife Account is the ability to earn up to 2.5% p.a. interest on the first S$10,000. You will also be able to earn up to 1.0% p.a. bonus interest rate on your next S$90,000 but honestly, you can get better returns from other investment accounts and instruments.

While the 2.5% p.a. interest rate is not guaranteed, this is a capital guaranteed insurance savings plan and therefore, if you have $10,000 earning minimum interest (0.05% p.a.) in the bank, you might be better off with a Singlife Account. The returns are calculated daily and they will be credited into your account on a monthly basis (on the first day of the following policy month).

There are no funds or fees required to maintain a Singlife Account but you will need to make an initial deposit of S$500 to activate your Singlife Account Policy - subsequently, a minimum account balance of S$100 must be maintained for you to enjoy the benefits of your Singlife Account. A full withdrawal is also possible if you wish to close the account and there are no penalties or fees involved. Most importantly, you will have access to your money in the Singlife Account at any time - instant withdrawals (and deposits, of course) via Fast and Secure Transfers (FAST) are available via the Singlife app with no fees involved.

Free Life Insurance Coverage and Retrenchment Benefits with Singlife

As mentioned earlier, the Singlife Account is a capital guaranteed insurance savings plan that comes with the following benefits (so long your account maintains a minimum amount of S$100 after activation):

• Death Benefit - up to 105% of the account value

• Terminal Illness Benefit - up to 105% of the account value

• Retrenchment Benefit - up to S$10,000 over 3 months

As the terms and conditions of the Singlife Account may change from time to time, I highly recommend that you check out the product summary to get more information. While your Singlife Account Policy is in effect, you will be covered up to 105% of your Singlife Account value in the event of death of terminal illness. The retrenchment benefit is slightly more complicated as it requires you to be retrenched and remain unemployed for at least 4 months before a retrenchment benefit will be paid over a period of 3 months. This benefit is an average of your monthly card transaction values (so you will need to apply for the free Singlife Visa Debit Card) made over the 6 months immediately before the date of retrenchment. The total retrenchment benefit is capped at S$10,000 over 3 months.

Photo Credit: Singlife

Get Free Singlife Visa Debit Card - No FX Fees, No Annual Fees

Along with your free Singlife Account, you will have the option of having a complimentary Singlife Visa Debit Card delivered to you. While this card will not earn you any cashback or miles (it is a debit card after all), you will not have to pay any FX fees when using the card for non-SGD transactions. As a quick reminder, most major banks in Singapore charge around 3.25% FX fee when you use a credit card so this can be quite lucrative for some of you out there.

Conclusion

Singlife aims to provide affordable life insurance in Singapore - there are options to purchase say a CI insurance or a Cancer Insurance - and they do have quite a few interesting features that are coming (e.g. Universal Life solutions for HNW individuals) so I will definitely keep an eye out for them. In the meantime, getting up to 2.5% p.a. interest on your first S$10,000 is not a terrible deal (especially if you want to maintain its liquidity in crazy times like these).