2.02% p.a. guaranteed returns. Would you sign this?

I'm contemplating on this endowment plan from FWD which gives 2.02% interest p.a. It guarantees return when the plan matures after 3 years.

This is the best "savings" plan I've seen. I'm thinking of putting $15k for this, which will mature to $15,927 after 3 years.
That is, if you don't terminate your policy early.


What are your thoughts to this offer?

---
After thinking for half a day and seeing some comments, I've decided to go ahead with this offer.

Looking forward to my $927 gain in 3 years' time!

Would you be joining me? :)

Comments

  1. Finance SmithsAugust 12, 2017 at 12:44 PM

    If you definitely don't need the S$15,000 for the next 3 years, you can consider it. Guaranteed 2.02%pa is slightly better than most high interest bank accounts. I just never like the part about the endowment plan whereby early withdrawal causes the surrender value to be less than the principal amount. It's punitive, unnecessary and suggests some level of commissions being charged.

    ReplyDelete
    Replies
    1. CherryAugust 12, 2017 at 7:35 PM

      Hi, agree. Sadly, the bank accounts are not offering good interest rates. With remaining cash lying around, I figured it'll be better to park it here for a slightly higher returns. You can consider it too!

      Delete
  2. trailblazerAugust 12, 2017 at 1:37 PM

    I took a look at https://www.fwd.com.sg/savings-and-investments/endowment-insurance/ and this looks promising!

    If you don't need the $15k now and can leave it for 3 years to earn this 2.02% guaranteed interest, it is close to risk free and offering a shorter maturity period than SG saving bonds.

    ReplyDelete
    Replies
    1. CherryAugust 12, 2017 at 7:36 PM

      Thanks for your thoughts! Just signed up for it. I think I can afford to stash this $15k away, even for the next 3 years! :)

      Delete
  3. LizardoAugust 13, 2017 at 8:51 AM

    Perhaps a money market fund could be considered as well.

    ReplyDelete
  4. LeeOctober 15, 2017 at 4:16 PM

    Wonder if this company is reliable. Since application is done online, how to seek redress if it turns up a fraud?

    ReplyDelete

Post a Comment

No rude messages please. Unkind messages and spams will be blocked and deleted.

Popular posts from this blog

End 2024 review - achieving $1.04m networth

Image
  Another end to a year. For the nth time, I dread reflecting on the year because I did not receive positive outputs from the pain I've endured. But here goes.  Here's a recap of my finances over the years: 2016 -  Unexpected review of 2016: hitting $200k in net worth 2017 -  End 2017 review - net worth at $287k 2018 -  End 2018 review - net worth at $372k  2019 -  End 2019 Review - inching close to $500k net worth  (~$440k) 2020 -  End 2020 Review - net worth at $550k 2021 -  End 2021 Review - closing in to $700k net worth 2022 -  End 2022 Review - failing financial goal for the first time, $660k net worth 2023:  End 2023 review: $819k net worth 2024 Review Borrowing my past year statement: This year, so much has happened, but not much have changed. Since I don't blog every month, here's a recap of what I've done across the past 12 months: Jan Did CPF MA topup of $3k Spoke about feeling depressed and signing up for counse...
Read more

SGD$1,000,000 networth unlocked 🎉

Image
As of 8 Dec 2024, I have officially unlocked the milestone of $1m networth 🎉 This is all thanks to the increased in value of my crypto holdings as well as my US stocks. My HK/CN stocks are still in bad shape. On stocks front, truthfully, my overall investments is still in the red. I had made mistakes in stock picking and has not taken the opportunity to cut losses. I had the view to hold and pray those stocks in deep red would go up - after all, I told myself I don't need the money right now. On crypto, given that BTC has bounced back, I'm sitting on decent profits. I've been cashing out bit by bit. The last I spoke in Mar , I cashed out a rather sizeable amount of BTC at 50% profit. On hindsight, if I had waited till now, I could have cash out 3000 SGD more. Anyway, this time round in Nov, I cashed out 2 times, at a 70%-80% profit. Not bad considering the rest of my investments. As long as there are no major global events impacting the markets negatively, I believe I woul...
Read more

🤞On track to hitting $950k networth by end 2024🤞

Another blink, another year ending soon. How have you guys been? I wonder who else is still monitoring my blog despite my lack of updates. Again, so much has happened, but not much have changed. I travelled well, continued with a 3rd round of IVF egg retrieval (result was extremely poor), and went through uncertainty at work due to restructuring but was thankfully able to keep my job. I still haven't fulfil my dream of being a mother. Though honestly, it now feels more like a checkbox to be unchecked than the actual fulfilment of wanting to nurture and grow a child. I think the weariness is getting too much. I will embark on my final transfer within these few months. This would be my 7th transfer. If it fails, I'm likely going to stop further treatments. I have already done the best at my "peak".  I am telling myself that my life is still amazing despite these hiccups. Anyway, onto my financial goals. Back on 31 Dec 2024, I posted my goal to achieve $950k networth by ...
Read more