1st August 2018 is when GREAT220, a savings plan from Great Eastern is being released. My mum has been wanting to sign up for it since it's previous editions like GREAT205 which was released in March 2018. However, the demand was so high that my mum had no chance to sign up for it.
Read more: Savings Plan Yes or No
GREAT205 which was released on Mar 2018 had an interest rate of 2.05%. GREAT220 has a higher interest of 2.20%. My mum got to know about this because her friends were all talking about it. Most of her friends have allocated funds to the previous plans.
My mum has a SRS account and some money in there. So when she came across this promotion that her friend told her about, she decided to put her money inside. The minimum investment sum for GREAT220 is $10 000. So let's say she place $10 000 inside, with an interest rate of 2.20% per annum for 3 years, she would get $220 interest per year and for 3 years, $660.
The amount might seem low for investors who invest in other products but because my mum throughout her life have been exposed to fixed deposits by banks and savings plans so this promotion for her is rather great. I do encourage her to use her SRS funds because if they were just lying there, they would only earn her a meagre interest of 0.05% per annum. Meaning if she had the $10 000 in her SRS account for the next 3 years she would earn a total of $15. Comparing $660 to $15, definitely my mum would be happier with an extra $645 since the funds in SRS are also 'locked'.
Happy National Day, it was great walking along the streets today and seeing so many people wearing red and white. Wishing Singapore a prosperous future and great years ahead!
To read more about GREAT220
I have recently created a Facebook page for easy access. Do give it a like if you like my stuff:) Facebook: SingaporeanTalksMoney
Showing posts with label Savings plan. Show all posts
Showing posts with label Savings plan. Show all posts
Thursday, 9 August 2018
Thursday, 22 February 2018
Savings plan - Yes or No
Savings/Endowment plans, what are they? Do they help in growing your wealth? To my mum, YES IT DOES. My mum is an ardent fan of savings and endowment plans because she has been purchasing them throughout her life. She told me that the feeling or saving each month sucks but when after a few years and you are able to have a substantial amount being returned to you, you will feel damn SHIOK. My mum spent her first lump sum savings on an overseas trip with my aunt as they purchased the plan together.
In my mum's generation, not many were aware of being financially savvy, she mostly listened to her friend who was a financial advisor and would recommend her products to buy. So during 2015, I started my gap year after finishing my polytechnic studies hence my mum knew about my salary and wanted to cultivate a savings culture in me. My cousin who became a full-time financial consultant recommended me an endowment plan however, I failed the checkup that was required as I have a pre-existing condition. My mum was upset and found NTUC income providing a plan with no prior checks required, the plan that I eventually signed up for was NTUC's RevoSecure.
At that time, I havent got into investing yet and so just followed my mum's instructions to sign up for the plan. However, when I went back to my studies in mid 2016, the burden of paying the premiums were rather heavy and I knew that this was not going to provide a satisfactory return. I discussed with my mum about it and she said just to continue so I did just that to not make her upset. In the end, I found that she just wanted me to start saving and that if anytime I faced difficulty in paying the premiums, she would definitely help me.
Over the past one year, I think it is also good to have a savings plan because if I did not have one, I would have placed all these money into the stock market. Maybe I would have profit more but I understand now why my mum wanted me to get one. It is kinda like a forced savings and the surrender value would prevent you from surrendering early. Also because I have started giving tuition part-time from Sep 2017, so my income can cover this payment and my expenses with minimal savings monthly so as of now, I am coping well with this savings plan.
So the premium is $319.20 each month and it is a pay 5 years, hold 10 years plan. I started in 2015 when I was 21 so it will be paid out when I am 31 which will be 2025. WOW, what have I gotten myself into! Locking all my money in this. So below shows the breakdown of the premiums I pay and the 'expected' returns.
Currently, I am paying the monthly premiums of $319.80 I have taken notice that the yearly premiums are lower in value than the monthly premiums so I might change to yearly premiums.
As you can see from the second table which is mainly about the surrender value, it is not worth to surrender it until the maturity date. If I were to surrender it now which will be year 2, I would only get back a guaranteed of $3600 when I would have paid $7380. So I guess I will pay it until I am 26 years old and just let it sit until I become 31 years old in year 2026.
In my mum's generation, not many were aware of being financially savvy, she mostly listened to her friend who was a financial advisor and would recommend her products to buy. So during 2015, I started my gap year after finishing my polytechnic studies hence my mum knew about my salary and wanted to cultivate a savings culture in me. My cousin who became a full-time financial consultant recommended me an endowment plan however, I failed the checkup that was required as I have a pre-existing condition. My mum was upset and found NTUC income providing a plan with no prior checks required, the plan that I eventually signed up for was NTUC's RevoSecure.
At that time, I havent got into investing yet and so just followed my mum's instructions to sign up for the plan. However, when I went back to my studies in mid 2016, the burden of paying the premiums were rather heavy and I knew that this was not going to provide a satisfactory return. I discussed with my mum about it and she said just to continue so I did just that to not make her upset. In the end, I found that she just wanted me to start saving and that if anytime I faced difficulty in paying the premiums, she would definitely help me.
Over the past one year, I think it is also good to have a savings plan because if I did not have one, I would have placed all these money into the stock market. Maybe I would have profit more but I understand now why my mum wanted me to get one. It is kinda like a forced savings and the surrender value would prevent you from surrendering early. Also because I have started giving tuition part-time from Sep 2017, so my income can cover this payment and my expenses with minimal savings monthly so as of now, I am coping well with this savings plan.
So the premium is $319.20 each month and it is a pay 5 years, hold 10 years plan. I started in 2015 when I was 21 so it will be paid out when I am 31 which will be 2025. WOW, what have I gotten myself into! Locking all my money in this. So below shows the breakdown of the premiums I pay and the 'expected' returns.
 |
| My savings plan |
As you can see from the second table which is mainly about the surrender value, it is not worth to surrender it until the maturity date. If I were to surrender it now which will be year 2, I would only get back a guaranteed of $3600 when I would have paid $7380. So I guess I will pay it until I am 26 years old and just let it sit until I become 31 years old in year 2026.
Subscribe to:
Posts (Atom)