10k in Elastiq or Singlife? I understand interest rates are dropping, so is 1.8% pa guaranteed (2.03% pa for 3 years taking into account rebates from promotion) better than 2.5% non-guaranteed pa?

I have been using Singlife from a few months back. The interest returns are decent and I would recommend signing up for Singlife first!

However, because the high interest only acts on the first $10k in the account I did not bother putting beyong that amount in Singlife. Just recently, I signed up for Elastiq because I wanted to park some of my savings which I used to put in high-interest bank saving account. Elastiq is especially attractive in this time where bank interests are unlikely to rise to before in the coming months. This is what I have gathered on this product so far and hope this helps:

Pros:

1. 1.8% p.a. guaranteed crediting rate for the first 3 years

2. Flexible withdrawal - withdraw from your account without penalty or interest claw back 90 days after the policy issue date

3. Adhoc Top-ups: may perform a one-off top-up of a minimum of S$500

4. No penalty or interest clawback during withdrawal

5. Non-guaranteed bonus of 0.3% will be given every 3 years if no withdrawal has been made before

Cons:

1. Lock-in period of 90 days

2. Minimum S$500 and in increments of S$500 per withdrawal

3. Nominal service fee would apply if your average daily account value for the policy month falls below S$5,000.

Bonus benefit: receive Etiqa eWallet credits worth 0.5% of policy’s premium value ($50 for $10k, $100 for $20k etc..!) when you tap on the referral promotion now. Reach out to me if you need a referral code!​​​

It depends on the current situation you are in! If you need the money to be liquid, I would suggest going for Singlife instead! Even though Elastiq is 1.8% guaranteed, you will have to lock it in for 3 years!

Having known of the two products mentioned, I would go for Singlife. Singlife gives you more flexibility and is also more liquid than Elastiq making it more like a savings account than a fixed deposit kinda product.

No reason was given by Singlife on why it is non guaranteed but I believe that they have the ability to give 2.5% p.a returns in spite of the low interest rate environment.

I think I will go for the Dash EasyEarn than Elastiq as at least it has more flexibility in terms of no lock in terms. However, I do not like the fact that there is fees to withdrawal to bank at $0.7 per transaction.

Another option will be the new Dash EasyEarn by Etiqa Insurance with a minimum initial premium of S$2,000, up to a maximum of S$20,000. Up to 2% per annum returns for the first policy year, no lock-in period and unlimited withdrawals with zero penalties.