Etiqa ELASTIQ: Guaranteed 1.8% p.a. High Interest Savings Plan

[Tranche for Etiqa ELASTIQ has closed.]

With the Covid-19 pandemic and poor economy, many of us are hungry for an alternative place to stash our hard-earned savings before we lose it to inflation.

One excellent choice is Etiqa’s ELASTIQ, which is a flexible savings plan with guaranteed 1.8% p.a. interest rate for the first three years. Key features:

  • Start saving with just $5,000. Flexibility to top up regularly or on ad hoc basis
  • Guaranteed 1.8% p.a. interest rate for the first three years
  • Lock-in period of only 90 days
  • After 90 days, you can withdraw all or some of your money without penalty
  • Full capital guarantee after three years

 

Short lock-in period of just 90 days

If you are looking for an alternative to your savings account, then liquidity is one of the most important features. After all, this is probably your emergency/rainy day fund — you would need easy access to your cash rather than locking it up for decades.

But it’s not that easy to find liquid investment/insurance products. For example, the ever-popular endowment plans typically have lock-in periods ranging from three to 25 years, before you are able to withdraw your money.

Unlike most other insurance savings plans, ELASTIQ has a short lock-in period of only 90 days. After the 90 days lock-in period, you have the flexibility to withdraw your funds with no penalty. You could use this feature if you need your funds for any emergency situations. 

 

Low-risk product with high interest rate

Of course, investing your money in a robo-advisor or brokerage account is also highly liquid in that you can sell your investments anytime.

But investing your money is high-risk and you should only do it with money that you do not require in the short term. Furthermore, it’s impossible to accurately predict your returns with investments as they are volatile. You could make 5% p.a. or -5% p.a… who knows?

For any funds that you might need in the near term, you would want to make sure that it’s sitting nice and safe inside a low-risk account such as a savings account or insurance plan with guaranteed capital.

Well, Etiqa’s ELASTIQ has both guaranteed capital (if you do not withdraw your money early) and guaranteed 1.8% p.a. interest rate for the first three years. You start earning interest from Day 1 as well.

 

Flexible & easy withdrawal

After 90 days, you can make partial withdrawals from ELASTIQ without incurring any penalty, charges or interest clawback.

To withdraw your money from ELASTIQ, simply use the TiqConnect app after 90 days. You must withdraw at least $500 in increments of $500. Note that you must maintain a minimum average daily balance of $5,000, or you will be charged a monthly service fee.

If you do not withdraw any money in the first three years, you can get a non-guaranteed bonus of 0.3% of the average monthly account value.

From Year 4, the 1.8% p.a. rate will no longer be guaranteed, and you will earn interest on a monthly basis according to prevailing market rates, with full capital guaranteed. 

 

How does Etiqa’s ELASTIQ plan work?

Sally wants to invest $10,000 with ELASTIQ. If Sally decides to invest for three years, this is the amount she would save:

Three years later, Sally decides to travel to Europe. She withdraws her money to pay for her trip. Her $10,000 is now worth $10,549! 

 

How is ELASTIQ different from other insurance plans?

True to its name, ELASTIQ is a lot more flexible than conventional insurance savings plans such as endowment plans.

That’s because ELASTIQ is technically a universal life insurance policy, which is a very flexible type of insurance. Unlike insurance plans where you regularly contribute a fixed premium, with a universal life insurance plan, there is no fixed payment plan.

 

How to top up your ELASTIQ plan?

Each individual can only get one ELASTIQ plan. However, should you want to top up your savings, you can do so easily via the TiqConnect app. Some things to note for top-ups:

  • You can opt for ad-hoc or recurring top-ups
  • Minimum top-up of $500
  • Top-up(s) must be in multiples of $500
  • The total value of the policy (single premium + all top-ups) must not exceed $200,000
  • Note that the interest rates for top-up are subject to the prevailing interest rate at the point of top-up

 

This advertisement has not been reviewed by the Monetary Authority of Singapore. 

Read more:
Etiqa eEASY save V: Guaranteed 2.68% p.a. Returns
Best Endowment Plans in Singapore
What should you do when banks slash their interest rates?

 

Important Notes

This is for general information only. You can find the usual terms and conditions of this plan in the policy contract. If you are unsure if this plan is suitable for you, we strongly encourage you to speak to a qualified insurance adviser. Otherwise, you may end up buying a plan that does not meet your expectations or needs. As a result, you may not be able to afford the premiums or get the insurance protection you want. Buying a life insurance plan is a long-term commitment on your part. If you cancel your plan prematurely, the cash value you receive may be zero or less than the premiums you have paid for the plan.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact your insurer or visit the GIA/LIA or SDIC web-sites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Information is correct as of 14 Aug 2020.

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