Here’s an Easy Way for Anyone to Grow Their Savings with up to 2% p.a. — Capital Guaranteed

This post was written in collaboration with Singtel Dash. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.

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If you’ve been following the news, you’ll know that amid the Covid-19 outbreak and economic slowdown, we’re in a global recession.

The US Federal Reserve slashed their rates to almost zero, which has put pressure on banks here. This impacts our savings accounts — you may have received the memo or noticed that your usual bonus interest rate seems to have taken a dip. Adjusted current savings account interest rates hover around 1.25% – 1.5% p.a., and Singapore Savings Bonds are currently around 1.05% p.a. (June 2020 rate).  

In addition, Singapore updated its recession forecast. From previous estimates of a 1-4% contraction, the latest prediction is that our GDP could shrink by 4-7% this year.

It’s now become even more critical for me to find ways to continue to grow whatever savings I have, and to protect myself against inflation in the future.

Hence, it’s timely that Singtel’s all-in-one mobile wallet, Dash, has teamed up with established digital insurer Etiqa to launch Dash EasyEarn, the first insurance savings plan available on a mobile wallet in Singapore.

In these trying times, it’s an attractive product — up to 2% p.a. returns (for the first year*), capital guaranteed, flexible top-ups and withdrawals, and a low barrier to entry (S$2,000 to get started).

On top of these, Dash EasyEarn has an insurance component that bolsters our existing protection plans.

Here’s a closer look at some of the key features that Dash EasyEarn offers:

Attractive returns for the first year*

As mentioned earlier, savings account interest rates have taken a dip; the latest interest rates compiled in our article here.

With Dash EasyEarn’s attractive returns for your first year* for a limited time only, it’s definitely worth considering. And having guaranteed up to 2% p.a. returns* on up to S$20,000 for the first year may tide you through current uncertainties around low or fluctuating interest rates during this period.

Keeping in mind that the maximum policy limit is S$20,000, and that the interest is calculated daily and credited monthly, here’s how our account value can grow:

Single premium: S$20,000Interest for first year (assuming no changes to account value): S$400^ Monthly interest for first year (assuming no changes to account value): S$33.36^

An extra S$33.36^ per month can buy about 6 or 7 cups of bubble tea, or that same number of meals at a neighbourhood coffeeshop. Cool.

It’s considered high yield, taking into consideration the current economic climate and the available options on the market today. 

Let’s also take a look at the starting premium:

Single premium: S$2,000Interest for first year (assuming no changes to account value): S$40^ Monthly interest for first year (assuming no changes to account value): S$3.34^

Capital is guaranteed

It’s also reassuring to note that with Dash EasyEarn, capital is guaranteed. This means that even during an uncertain time such as now, you’ll be able to recover whatever money you’ve put in — even if (touch wood) of any unexpected crises.

It’s generally a safe option for the risk-averse, such as myself. But even if you’re someone who can stomach medium- to high-risk, the lower-risk Dash EasyEarn is a product worth considering to include your portfolio.

Low starting premium of S$2,000

When I browse other financial products, the barrier to entry often puts me off. I mean, who has S$200,000 to invest? I don’t even have S$50,000 of liquid cash to my name.

Dash EasyEarn’s low initial premium of S$2,000 is comfortable — it’s an amount that is realistic for first-jobbers and students, and even for those who tend to spend what they earn, it’s a figure attainable enough to help them cultivate the habit of saving.

Even with the minimum account value of S$2,000, you’ll still see some gains. That’s S$40^ worth of interest earned in the first year, or S$3.34^ per month… enough to buy 2 or 3 cups of kopi.

Anytime top-ups, flexible withdrawals

It’s a nice gesture that Dash EasyEarn allows for flexible top ups to continue growing your money. 

Let’s say you start off with S$2,000 (minimum amount) but want to grow your Dash EasyEarn account value each month after your salary comes in, or on an ad-hoc basis after your client pays you for the project. You just need a minimum of S$500 for each top-up, which you can do easily via your mobile phone through Dash.

There’s also the option to withdraw your money if you require. So if you really need to take out S$5,000 of your S$20,000 for an emergency or to fund your goals, that’s totally possible.

In addition, since it’s on the Dash app, you’ll have the option to withdraw from your Dash EasyEarn directly into your bank account or to your Dash e-wallet. Just make sure you keep the minimum of S$2,000 to continue to earn interest.

An insurance component too

Dash EasyEarn comes with an insurance component, in which up to 105% of the account value is paid out for death.

It’s a nice complement to your other insurance policies, for more peace of mind.

Get Dash EasyEarn exclusively on the app

Even if you don’t plan to take up Dash EasyEarn yet, Dash is a useful app to download onto your mobile phone.

With Singtel Dash, you can:

• Tap and pay on buses and trains without taking out your card; and
• Easily remit money to Malaysia, the Philippines, Indonesia, Myanmar, India, Bangladesh and China;
• Make payment on overseas shopping sites with 0% transaction fees through its virtual Visa card, and 
• Enjoy competitive foreign exchange rates when you pay through VIA on Dash when you travel.

Once you’ve got Dash, sign up for Dash EasyEarn in a few simple steps:

1. Open the app and click on the ‘Grow Money’ tile on the app’s home screen

2. Read through all the details, disclaimers and T&Cs on the Dash EasyEarn details page before providing your consent to proceed.

3. Click the “sign up now” button, fill in your details and declarations

4. Transfer your premium to your new Dash EasyEarn plan from your bank account (via eNets).

5. Sit back and relax while you start earning up to 2% p.a. for the first year*

Get your Dash EasyEarn plan exclusively through Singtel Dash here.

The information is meant purely for informational purposes and should not be relied upon as financial advice.

*Effective for sign-ups up to 24 September 2020 (date inclusive): Guaranteed at 1.5% p.a. + 0.5% bonus for the first policy year.

**Effective for new sign ups from 25 September 2020: Guaranteed at 1.5% p.a. + 0.3% p.a. bonus for the first policy year, available on a first come, first served basis.

^The illustration of interest earned is based on the mentioned starting account value at 2.00% p.a. for one year with no withdrawals or top-ups in between. Actual interests earned may differ from the illustration.

Other terms apply. This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). This content is for reference only and is not a contract of insurance. Full details of the policy terms and conditions can be found in the policy contract. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore. Information is accurate as at 25 September 2020.