This post was written in collaboration with DBS. 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.
Once you’ve started earning and saving money, it’s time to think of ways to grow it. Leaving it in the piggy bank and doing nothing with it, would technically be “losing money” thanks to inflation.
Just as you should be thinking of long- and medium-term investments, finding ways to grow and protect your money in the short-term can give your finances a boost without a lot of commitment. This can help you to achieve certain short term goals that you might have, such as a family holiday, or protecting your money for a rainy day.
There are several options available for folks who want to put their money away for the long-term, but it can seem hard to find a good mix between a shorter timeline and good returns.
- Min. Commission Fee US Stocks
- Min. Commission Fee SG Stocks
- Min. Funding
How to grow your money in the short-term
There are many established ways to grow your money in the short-term, such as the following:
- Fixed deposits
- Singapore Savings Bonds
- Short-term endowment plans
Each product helps to fulfil different needs based on your investment time horizon and financial situation.
Here’s a table illustrating the differences between the three:
|Investment Horizon||Investment Amount||Returns||Flexibility|
|Singapore Savings bonds||Long / 10 years||$500 min||1.96% to 2.16% over a period of 1 to 10 years (for Singapore Savings Bonds issued in April 2019)*||No penalty for exiting early|
|DBS Fixed Deposit||Between 1 month and 5 years||$1,000 min||Fixed – 1.4% p.a. (as at 22 Apr)||Can withdraw prematurely and receive full principal amount, though you will lose the accrued interest|
|SavvyEndowment 1||3 years||$5,000 min||Up to 2.22% p.a. over 3 years||Receive a guaranteed cash-in as follows:
– In policy year 1, 100% (during free-look period) or 80%
– In policy year 2, up to 90%
– In policy year 3, up to 103.5%
*Rates are based at the end of each year, on a compounded basis.
Grow your money over 3 years with SavvyEndowment 1
So what is it really about?
SavvyEndowment 1 is a 3-year endowment plan with a single premium. That means all you have to do is pay one premium upfront at the start of the plan, and then wait for your money to grow.
At the end of your endowment plan, you will receive a maturity benefit consisting of a guaranteed maturity value and a non-guaranteed maturity bonus.
At the end of three years, the guaranteed portion of the maturity benefit is equivalent to 103.5% of the single premium you paid at the start of the plan.
What about the non-guaranteed maturity bonus? With a higher illustrated investment rate of return of 2.64%, your total yield at maturity is 2.22% p.a.^
During the tenure of your plan, in the unfortunate event of death, your dependents would receive lump sum coverage equivalent to 101% of the premium paid.
What kind of person is SavvyEndowment 1 ideal for?
If the following sounds like you, SavvyEndowment 1 might be a suitable addition to your portfolio:
– You have short-term goals to work towards – Perhaps you are aiming to go on a round-the-world trip or buy a new car. SavvyEndowment 1’s investment horizon of 3 years means you can cash out just in time to achieve your goals.
– Love the ease of applying online – Applying for SavvyEndowment 1 is extremely simple. Your particulars are auto-populated and there is no need for you to make a trip down to a bank branch.
Click here to find out more about how to start growing your money with SavvyEndowment 1.
^ At the lower illustrated investment rate of return of 1.39% p.a., the total yield at maturity is 1.15% p.a. The two rates, 1.39% p.a. and 2.64% p.a., are purely illustrative and do not represent upper and lower limits on the investment performance of the Participating Fund. The Illustrated Yields at maturity are not guaranteed and do not represent upper and lower limits on the yield you could receive on this participating policy.
The advertisement has not been reviewed by the Monetary Authority of Singapore. Information in this article is meant for informational purposes only and should not be relied upon as financial advice. Users may wish to approach a financial advisor before relying on any advice provided by the website to make any decision to buy, sell or hold any investment product.