With most of the banks cutting their interest rates parking your funds in banks might seem really underwhelming. If you have noticed there are sudden surges of endowment/savings plans in the market, this is a good option for disciplined mandatory savings.
Personally, saving plans do not appear to me due to the long lock-in period and low returns. I prefer to capitalize on opportunities to trade on the market when opportunities present themselves.
Endowus recently launch an innovative cash management solution with up to 2.2%. Projected Yield to meet Singaporean’s needs to grow their cash savings with no lock-up, daily liquidity, and low fees.
Here are more key benefits at a glance:
- Up to 2.2% projected yields p.a.
- Daily accrual of interest returns
- No lock-ups and unlimited transfers
- An all-in low 0.05% access fee with no sales or transaction charges
- Built on best-in-class funds from Fullerton (Temasek subsidiary), UOB Asset Management, and Lion Global (OCBC group company).
I think this product positions itself in an interesting bucket for something that has better returns than a bank account without jumping through hoops while providing a decent rate of return. The plus point here is that there are no lock-up periods meaning if one requires funds quickly, liquidation options are available unlike endowment plans.
For more information about how this product works, you can read this in-depth article from their Investment Office and watch their webinar. If you are interested in Endowus^ you can sign up here
Endowus is a MAS-licensed financial technology company and the first-and-only digital investment advisor for the Central Provident Fund (CPF), Supplementary Retirement Scheme (SRS), and cash. Endowus offers access to superior investment products, personalised advice, and lower costs on a seamless digital investment platform for all investors. Partnered with UOB Kay Hian, Singapore’s largest broker, client assets and positions are safely held in the client’s own name. For more info, please visit www.endowus.com/
^As with all investments, I would strongly encourage you to perform due diligence and risk management to determine if this is a suitable product for your risk appetite. Do remember that any investments come with risk and this article does not constitute professional financial advice.