Worried about finding higher yields in savings accounts in this declining interest rate environment? You no longer need to settle for low-yield bank savings accounts, with insurers like Singlife, Singtel Dash and Gigantiq coming up with insurance savings plans that not only have more attractive yields, but also insurance protection from death and TPD (total permanent disability).
What makes these plans particularly interesting, however, is that they have no lock in period. This means you are not required to keep the money in the savings account for a fixed amount of time like a fixed deposit.
For fresh graduates or working professionals on a tight budget, this could be a good chance to dip your toes in the waters and let your money work for you. It is a good head start into personal financial planning without much capital outlay. Later on, with additional needs like housing or dependants, you can add insurance plans with higher and more extensive coverage into your insurance portfolio.
Read Also: Complete Guide To Cash Management Accounts In Singapore
Comparing Insurance Savings Plans With High Yield Savings Accounts And Fixed Deposits
Recently, many banks have reduced their base interest rates on their high yield savings accounts. For example, OCBC recently announced that from 1 August 2025, the maximum interest rate on the OCBC 360 Account for balances up to $100,000 will be lowered to 5.45% p.a. down from the 6.3% p.a. previously. With potential US rate cuts anticipated in the coming months, local banks may also pre-emptively lower rates further. As a result, high yield savings accounts are starting to look less attractive.
As for fixed deposits, banks such as DBS are offering a fixed deposit with a minimum sum of $1,000 (up to $20,000) locked in for 12 months with an interest rate of 1.6% p.a., not too shabby considering the current interest rate environment but the main drawback is that your money is locked in for a significant period of time.
So with high yield savings accounts no longer having such a high yield and fixed deposits requiring a lock-in period, what is the alternative for achieving good yields without a lock-in tenure?
Insurance Savings Plans: Your One-Stop Shop For Savings And Insurance Needs
These insurance savings plans introduced by Dash EasyEarn, GIGANTIQ and Singlife are a combination of a regular savings plan, insurance protection, and a traditional bank account.
| Singlife Account | Dash PET 2 | GIGANTIQ by Etiqa [Fully Subscribed] | |
| Interest Rate | Up to 2% on the first $10,000, and up to 1% per annum on the next $90,000 | Up to 1% p.a. on the first $50,000 for the first policy year | 1.8% p.a. (first year) for first $10,000 1% p.a. (first year) for amounts more than $10,000 |
| Maximum Amount | $100,000 | $50,000 | $10,000 |
| Minimum Amount | $100, need to maintain at least $100 in account to receive interest | $50 | $50, top up anytime |
| Withdrawal Fees | No service, withdrawal or surrender fees | Minimum withdrawals starting from $1 with a $0.70 fee for each transaction when transferring to a bank account via PayNow | $0.50 fee for credit to DBS. $0.70 fee for credit to PayNow. |
| Death Benefit | 105% of account value | 105% of account value | 105% of account value |
| Additional Benefits | Your deposit with Singlife is capital guaranteed under the Policy Owners’ Protection Scheme administered by SDIC.
Furthermore, you can use the Singlife App to pay instantly to businesses and entities with PayNow UEN. |
You can easily add more insurance coverage against Cancer, Accidental Death, and Death & Total and Permanent Disability from just 2 cents a day.
With the Singtel Dash App, you can use your basic account to pay your insurance premiums or for everyday expenses. |
Earn additional interest of 0.25% p.a. on the first $10,000 for each protection plan purchased under Etiqa |
Singlife Account: Attractive Returns and Bonuses
Among the 3 insurance savings plans, Singlife offers the highest (non-guaranteed) base interest rates – up to 2% per annum (p.a.) on the first $10,000 of deposits and up to 1% p.a. on the next $90,000, for a total of up to $100,000.
You can further enhance the interest rate by another 1.5% p.a. (up to a total of 3.5% p.a.) on the first $10,000 by topping up $800 during each Top-up Campaign, plus an extra 1% p.a. on the same amount when you purchase any of Singlife’s 18 eligible Life & Health policies.
Take note that in order to earn interest, your account value must be at least $100. You will need to download the Singlife app for you to apply for this plan.
Read Also: The Singlife Account – How Does It Stack Up Against Other High-Interest Accounts?
Singtel Dash PET 2 (by Etiqa): Higher Barriers To Entry, Lower Maximum Amount
Singtel Dash PET 2 (by Etiqa Insurance) offers one of the lowest investment requirements of just $50, allowing you to earn up to 1% p.a. base interest on the first $50,000, with the interest accrued daily and credited monthly.
Additionally, you can stack up an extra 0.25% (up to 0.75%) interest on the first $10,000 for each add-on insurance coverage selected (Major Cancer, Accidental Death, and Death & Total and Permanent Disability).
As part of the Dash PET 2, you will receive free life protection of 105% account value. You can top up your Dash PET account from as little as $1 or withdraw your funds anytime, though there’s a service fee of $0.70 for bank transfers via PayNow.
To apply, download the Singtel Dash app. Applicants must be between 17 and 75 (at next birthday) with a valid Singapore NRIC or Singapore residency/work pass.
GIGANTIQ by Etiqa: Easy Access, Options To Increase Interest [Update: Fully Subscribed]
Etiqa has the most easily accessible plan, requiring just $50 to register an account. This would be ideal for most first-time users who want to dip their toes into such a plan but are on a tight budget.
The interest rates offered under GIGANTIQ on your first $10,000 for the first year are as follows: guaranteed 1% p.a. and 0.8% p.a. bonus. The option to offer guaranteed interest rates makes this not only an accessible plan but an attractive one too, knowing that your money will definitely earn interest in spite of any market movements.
You also have the option of earning additional interest of up to 0.25% p.a. on the first $10,000 for every protection plan purchased from Etiqa. These insurance plans can include home, cancer or travel insurance, and it would be good to consider this plan if you are also currently considering other forms of protection.
You will need to download the Tiq by Etiqa mobile app for you to access this plan.
The Similarities Between All 3 Insurance Savings Plans And How You Can Use Them
An important caveat to note is that these 3 financial instruments are not bank accounts but rather insurance savings plans underwritten by their respective financial institutions. This means that your funds are protected under the Policy Owner’s Protection Scheme by the Singapore Deposit Insurance Corporation (SDIC) against any unexpected crisis.
In this case, as the insurance savings plans are considered individual life policies, there will be a cap S$100,000 for guaranteed surrender value per life assured per insurer. This means that up to $100,000 that you place in the account will be insured by SDIC in the case of any insolvency or winding up of the insurer.
Each plan also insures the account holder with a life insurance coverage of 105% of the deposit in the event of death or terminal illness. This means that the more you save (up to the maximum account limit), the more you are covered for. This is, however, by no means sufficient coverage as you still need to take into account the coverage gap between the amount you are covered for and the amount you will need for your beneficiaries or yourself in the case of life-changing events such as death, terminal illnesses etc.
They also do not require a monthly premium payment, which makes it easier on your wallet for cashflow purposes. This flexibility also has its drawbacks, especially if you prefer to be covered for a fixed sum assured. Moreover, you might also not be covered for other major events such as critical illness.
Read Also: [2025 Edition] Best Savings Accounts for Working Adults in Singapore
