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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? :)
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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

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