Short-term endowment policies: NTUC Income Gro-capital Ease or DBS SavvyEndowment 3? - Seedly
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Asked 1w ago

Short-term endowment policies: NTUC Income Gro-capital Ease or DBS SavvyEndowment 3?

Considering that I want to put in $5000 and I am okay with either durations, by simply looking at the interest rate, the DBS one looks better with 2% (compared to 1.85%).

However, I am slightly confused with the non-guaranteed maturity bonus. So with that in consideration, which is better (safe, maximised guaranteed earnings)? Your help will be greatly appreciated (:


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Billy Ko
Billy Ko, Analyst at ClubMed
Level 7. Grand Master
Updated 6d ago

Hi there!

DBS SavvyEndowment 3

On face value, DBS does look better as it illustrates a return of 6.12% over 3 years however the guaranteed amount is only 2% over 3 years = 2% / 3 = 0.66% per annum (Hence you see the figure $10,200 guaranteed maturity value at the end of 3 years), the non-guaranteed portion is depending on how the fund performs.

If you put in $5,000, after 3 years

Guaranteed = $5100

Guaranteed + Non-guaranteed Bonus = $5306

NTUC Income Gro-capital Ease

On the other hand, NTUC Income does look lesser with only 1.85% returns, however, this return is guaranteed which means based on the quote as per the picture, if you deposit $10k, at the end of the 2 years, you will get back $10,373.40.

If you put in $5,000, after 2 years

Guaranteed = $5186.70


1 comment

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Question Poster

6d ago

This is so helpful 👍 Thank you so much!! ^^
Gideon Ng
Gideon Ng, Blogger at FI Pharmacist
Level 5. Genius
Answered 5d ago

Hi Anon,

I personally feel that the DBS plan has too many conditions required to get the return that they advertised. There is no guarantee that the investment return will be high, especially during this climate. As such, it is very possible that you'll only be receiving the guaranteed portion of 0.66% p.a.

I am a bit more risk averse when it comes to finding a place to store my savings, so the 1.85% guaranteed by NTUC Income is more attractive for me.

Another thing to consider is the lock up period. Gro Capital Ease is really short and only for 2 years, while SavvyEndowment is a bit longer at 3 years.

If you would like to find out more about NTUC Gro Capital Ease, I have written a review here.

1 comment

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Question Poster

3d ago

Insightful opinions for consideration, thanks so much for sharing! (: