I am considering Elastiq Endowment Plan right now. What are the pros and cons of the plan and is it worth it?

To be honest, now may not be the optimal time for a savings product that entails a prolonged lock-in period. The prevailing high interest rates and the extended commitment period may not align favorably with current financial circumstances.

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:

Pros:

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

2. Lock-in period of only 90 days (unlike other endowment plans outside which can be 5-10 years long)

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

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

5. No penalty or interest clawback during withdrawal

6. 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 are interested in a referral code.