Launched in November 2019, the Singlife Account touts itself as “a smarter, simpler way to manage your savings”.
The Singlife Account delivers a return of 2.5% per annum on the first $10,000 deposited without any lock-in period. A minimum deposit of $500 is required upon account opening, and a minimum balance of $100 needs to be maintained to enjoy the benefits of the Singlife Account. This interest rate of 2.5% per annum is not guaranteed and subject to change in future.
Readers considering using the Singlife Account would undoubtedly be interested to know what the differences between the Singlife Account and other high-interest accounts. We examine it below.
Singlife Account Is NOT A Bank Account
The first point you should know about the Singlife Account is that it is not a bank savings account.
Instead, it is an insurance savings plan that is capital guaranteed, with the value in the Singlife Account protected up to specified limits by the Singapore Deposit Insurance Corporation.
The account comes with services and features that is typically offered by banks, such as access to balance via the Singlife app and an optional Singlife Debit Card for local and international transactions with no annual and foreign exchange fees.
There are no points or cash rebates from using the Singlife Debit Card, but each card transaction will count towards the retrenchment benefit (we will get to that shortly). In addition, while cash withdrawals via the debit card is currently unavailable, account holders can make withdrawals via FAST transfer to their own personal bank account.
As an insurance savings plan, the Singlife Account also comes with a life insurance coverage of up to 105% of the deposit in the event of death or terminal illness. The policy is automatically renewed every year subject to conditions and exclusions, and it will be terminated once the benefit is paid.
|In an event of death or terminal illness||Benefit|
|Before the policy anniversary on which life assured’s age last birthday is 61||Sum of:
– deposit; and
– 5% of deposit or $50,000, whichever is lower
|On or after the policy anniversary on which life assured’s age last birthday is 61||Sum of:
– deposit; and
– 1% of deposit or $50,000, whichever is lower
In addition to the insurance coverage, the Singlife Account comes with a retrenchment benefit.
As long the account holder is retrenched after the first six months from the account opening and remains unemployed for at least four months, the account holder will receive the benefit for a period of three months, subject to terms and conditions.
The benefit amount is the based on the average monthly Singlife Debit Card transaction made over the six months right before the date of retrenchment, capped at $10,000.
How Singlife Account’s Interest Compares With Other Accounts
The Singlife Account offers a return of 2.5% p.a. on the first $10,000, and 1% for the next $90,000. No returns will be paid for on amounts above $100,000.
While the returns on the Singlife Account are not guaranteed, it is worthy to note that the interest rates offered by banks on their high-interest accounts may be subjected to revision as well.
Here’s a comparison of Singlife Account’s interest rates with three popular high-interest rate accounts.
|Accounts||Rate (P.A.)||Terms and Conditions|
|Singlife Account||Up to 2.5%||– Initial deposit of $500
– Maintain a minimum balance of $100 to earn returns
– First $10,000 receives 2.5% p.a.
– Next $90,000 receives 1% p.a.
– No interest above $100,000
|CIMB FastSaver Account||Up to 1.8%||– Initial deposit and minimum balance of $1,000 to earn interest
– First $50,000 receives 1% p.a.
– Next $25,000 receives 1.5% p.a.
– Next $25,000 receives 1.8%
– $100,000 and above receives 0.6% p.a.
|UOB Stash Account||Up to 1%||– Initial deposit and minimum balance of $1,000 to avoid fall-below-fee of $2
– First $10,000 receives 0.05% p.a.
– Next $40,000 receives 0.8% p.a.
– Next $50,000 receives 1.0% p.a.
– $100,000 and above receives 0.05% p.a.
|MayBank iSAVvy Savings Account||Up to 1.75%**
**Promotional rates are for March and April 2020
|– Initial deposit of $500
– First $5,000 receives 0.1875% p.a.
– Next $45,000 receives 0.32% p.a. effective interest rate (EIR)*
– Next $50,000 receives 0.4% p.a. EIR*
– Next $100,000 receives 0.45% p.a. EIR*
– $200,000 and above receives 0.5% p.a.* Includes an interest-on-interest of 6% (on next $45,000 and next $50,000) and 18% (on next $100,000) paid every 6 months, on top of base interest of 0.3% (on next $45,000) and 0.38% (on next $50,000 and next $100,000)
To illustrate the returns one will receive from each account, here’s an example based on a deposit of $100,000 for a year, excluding promotional rates.
Out of the four accounts, CIMB Bank’s FastSaver Account yields the highest return of approximately $1,325, followed by Singlife Account’s $1,150. UOB’s Stash Account yields an interest of $825, while MayBank’s iSAVvy Savings Account yields $353.
If we raise the amount to $150,000, the FastSaver Account brings an additional return of $300, while the Stash Account and iSAVvy Savings Account provides an extra interest of $25 and $225 respectively.
While Singlife Account does not pay any interest on amounts above $100,000, trailing behind FatsSaver Account in terms of returns, the availability of a debit card and the relatively high returns as compared to the other two high-interest accounts make a good option for anyone intending to keep their emergency fund or spare cash, without incurring penalties for withdrawals.
Signing Up For The Singlife Account
To sign up for a Singlife Account, you will first be required download the Singlife App and register your details using SingPass MyInfo.
After confirming the details, you can proceed to make a minimum initial deposit of $500 via FAST transfer from any bank account into the Singlife Account, and to make a request for the debit card to be mailed to you within 9 to 12 business days.
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