Are there any downsides of having a savings plan? If yes, what are they and what are some considerations I need to take note of before having one?

Hey there!

The downside in general is a lock-in period. You need to evaluate whether you can commit to the lock-in. Some savings plan have a range of lock-ins so you need to see which fits into your time horizon.
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There's a downside to every investment!

if you're expecting astronomical returns, this definitely isn't for you.

if you have issues with putting aside money for the future for at least 10 years, this may not be suitable for you either!

if you have something you're saving towards, eg. Your child's university education fund, make sure it pays out when you need it to.

things to note: make sure your plan works for you.

some provide liquidity with a cashback feature at the cost of lower returns

some have an open ended feature that can be withdrawn after a lock-in period eg. 15 years

some only pay out at that particular year and you have to take it out regardless of whether you need it or not

some Have a limited pay feature (pay for 5 years but withdraw at 15th year) which % wise, have slightly better yield than the full term of paying (Paying 20 years and withdrawing at 20 years) ​​​