Singlife Account reduces interest rates to 1.5% p.a; extends Save Spend Earn’s 0.5% bonus

From 29 January 2021, Singlife Account customers will earn 1.5% instead of 2% p.a on the first S$10K balance.

Well, it couldn’t last forever.

From 29 January 2021, Singlife will be lowering the interest rate on the first S$10,000 in the Singlife Account from 2.0% to 1.5% p.a. It will, however, be extending the Save Spend Earn campaign until 30 June 2021, so customers can continue to earn a bonus 0.5% p.a on the first S$10,000 should they meet the spending requirement (see below). 

This marks the second cut in less than three months- back on 1 November 2020, Singlife reduced the interest rate on the first S$10,000 from 2.5% to 2.0% p.a (the Save Spend Earn campaign was intended to cushion the impact of the change).

⚠️ New sign ups for the Singlife Account have been on hold since 15 December 2020. Singlife says that applications will reopen sometime in 2021, but have not specified exactly when. 

Singlife Account changes

Here’s what the Singlife Account crediting rates will look like from 29 January 2021:

Account Value Until 28 Jan 2021 From 29 Jan 2021
First S$10,000 2.0% p.a 1.5% p.a
Next S$90,000 1.0% p.a 1.0% p.a
Amounts >S$100,000 0% p.a 0% p.a

As a reminder, returns are calculated daily, and credited to your Singlife Account on the first day of the following policy month.

Singlife customers are still able to earn an additional 0.5% p.a through the Save Spend Earn campaign. This requires spending at least S$500 per month on their Singlife Visa Debit Card. 

Why would you choose to put spending on a debit card instead of a credit card? Well, there are no exclusions categories for spending. This means you could use the Singlife Visa Debit Card to clock transactions that normally do not earn rewards on credit cards, such as: 

  • Charitable donations
  • Education bills
  • Insurance premiums
  • Government payments
  • GrabPay wallet top-ups
  • Utilities bills

An incremental 0.5% p.a. on an account value of S$10,000 means an additional ~S$4 per month, which represents an effective rebate of 0.8% on S$500 of spending. It’s not life-changing, but it’s still better than the zero you’d have received otherwise. 

The Save Spend Earn campaign was originally due to lapse on 28 February 2021, but has been extended till 30 June 2021. You can find the full T&C here

How does this compare to other insurance savings plans?

With the impending cut, how will Singlife compare to other alternatives on the market? The main ones I can think of are GIGANTIQ and Dash EasyEarn:

  GIGANTIQ Dash EasyEarn Singlife
Returns 1.8% p.a 1.8% p.a 1.5% p.a*
(+0.5% for Save Spend Earn)
Breakdown First S$10K: 1.8%
Above: 1%
First S$20K: 1.8% First S$10K: 1.5%
Next S$90K: 1%
Initial Deposit S$50 S$2K – S$20K S$500
Min Balance S$50 S$2,000 S$100
Max balance S$200K S$20K None 
Lock-in None None None
Withdrawal penalties None None None
Withdrawal blocks None S$100 None
Withdrawal fees 70 cents/ 50 cents
(for DBS/POSB)
70 cents
(free to Dash Wallet)
None
Life insurance coverage (% of account value) 105% 105% 105% + terminal illness
Capital Guarantee Yes Yes Yes
*Effective 29 January 2021

On the whole I’d say it’s still competitive enough, provided you can unlock the bonus 0.5% p.a interest via Save Spend Earn. It’s certainly better than parking your money in a bank account anyway, given all the interest rate nerfs we’ve seen recently. 

For short term liquidity needs, there are other cash management solutions worth exploring, such as Stashaway Simple (projected return: 1.4% p.a) and Endowus Cash Smart (projected return: 1.6% p.a). I might touch on some of these in a future post.

Conclusion

Singlife Account customers will earn less interest from 29 January 2021, although they will be able to offset some of the impact with Save Spend Earn.

In absolute terms, you’re not losing much – for someone with a S$10,000 account balance, this means S$50 less interest per year. But it is a reminder of the current macroenvironment conditions we find ourselves in, and few would see interest rates rising this year. 

Aaron Wong
Aaron founded The Milelion with the intention of helping people travel better for less and impressing chiobu. He was 50% successful.

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Anon

I thought it’s worth pointing out that Singlife has a daily withdrawal limit of $20K. Found that out only recently when I needed to withdraw, as I don’t recall seeing this mentioned anywhere in their product literature. Not sure if Dash EasyEarn and GIGANTIQ have similar restrictions.

Last edited 1 month ago by Anon
Warung Buffet

Buy Gamestop Call Options instead

risk

5% in gamestop and 95% in POSB will still earn more! and POSB will never go under unless singapore sinks.

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