Note – the crediting rates has been revised to 1.5% as of 29 Jan 2021 and will likely be subjected to more changes
I started using Singapore Life (Singlife) account for its 2.5% returns on the first $10,000. In my Singlife review, I write about its various features, the good and the bad, and whether it turned out to be a great option for me. Before I go into the details, a quick update on what’s happening in my life.
2020 has been nothing short of an impactful year. Depending on your personal situation, your experience could have been very negative or positive. If it is the former, I empathize with what you’re going through – I have immediate family members who are going through the same thing.
For the luckier ones, we have been hunkering down and living our lives, hoping for normal to resume in the near future. My luck with building alternative income streams have blossomed this year, despite the onset of the pandemic since the start of the year.
And with that, I find myself having extra cash on hand.
Planning for an event that could happen, and actually living through it are two entirely different things! While we counted our blessings (We Dodged A Bullet By Leaving The Events & Hospitality Industry), it also made me more appreciative of the fact that we had an emergency fund available if we ever needed it.
My personal view, not financial advice. Some links may earn me a referral commission.
Investing involves risk, past performance doesn’t guarantee future results, and you should do your own research. While efforts are made to ensure the accuracy of content at the time of publication, I am not responsible for any errors, omissions, or outdated information.
- Plummeting interest rates
- Before my Singlife review : Note – it is not a savings account
- 1. High(er) 2.5% rate for first $10,000
- 2. Convenience – no hoops
- 3. Liquidity – withdrawing money (no lock-in)
- 4. How safe and reliable is Singlife account?
- 5. Bonus protection
- Update effective as of 1st November 2020
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Plummeting interest rates
With the global situation spiraling out of control, emergency funds that were earning good interest suddenly found themselves in search of better yield.
Of course, one simple option is to put them into USD-denominated stable coins and earn maybe 8% interest? In return, I would have to take on some risk and sacrifice a little liquidity. Nah, maybe not – especially when it comes to emergency funds.
It is no secret that I’m not a big fan of jumping through hoops for better interest rate. Is there really a no-frills option when it comes to better returns on our idle cash?
Before my Singlife review : Note – it is not a savings account
I have been tweeting about Singlife since March 2020 and as with all things, I don’t really write about them unless I’m using it and satisfied that it is a legitimate product that serves my needs well.
I first started small with a $500 deposit. Better be safe than sorry, right? As I got used to the platform, saw how the 2% returns was calculated (in the app, it will state how much interest was earned for the month) and credited, and understood whether it met my expectations, I increased the deposit to $10,000 by June 2020.
In case you haven’t realised it, Twitter is for all things that doesn’t belong on a blog. Or perhaps, you can call it my testing ground for a myriad of products and services relating to personal finance or alternative income. Content that isn’t ready for my blog yet would most definitely be found on my Twitter account.
Back to my Singlife review – first of all, let’s correct a common misconception.
- Is Singlife Account a bank savings account? No, it is not.
- Is Singlife Account fixed deposit plan? No, it is not.
Of course, I’m currently using it as a savings account but to be more precise, Singlife account is an insurance savings plan.
Whaaaaa – ?
Like many others, I would very much prefer to maintain separation of interests and most times, I’d steer clear of insurance savings plan. What drew me to the Singlife Account during my search for higher yield came down to a few factors –
- High(er) returns rate
- Convenience – no hoops to jump through
- Liquidity
- Safety
- Bonus – protection
1. High(er) 2.5% rate for first $10,000
You have to remember what I mentioned earlier – Singlife account is not a savings account. Repeat after me – it is an insurance savings plan. What this also means is that returns are not guaranteed!
This is why the terminology used on the website is very specific and does not mentioned interest rate. Also, take note that there is a tier structure –
- The account yields 2.5% per annum. returns on your first S$10,000
- Amounts above your first S$10,000 up to S$100,000 will earn 1% per annum. returns
- Amounts above S$100,000 will not earn any returns
I’m pretty happy with this, to be honest. I’m not a fan of fulfilling endless conditions and in the past, I was happy to settle for CIMB FastSaver account that yielded just 1% interest rate.
Returns can be seen in the app – calculated daily and credited monthly.
2. Convenience – no hoops
I can be fairly lazy when it comes to certain matters, and I’m certainly no fan of jumping through (too many) hoops in order to fulfil criteria and qualify for higher returns. For a start, there is a minimum of $500 to get started.
So, when I mentioned convenience, it meant mentally as well – and that I was able to reduce the mental clutter of having cater to one less thing
Secondly, the account is managed entirely on its dedicated mobile application, which can be a great (or bad) thing depending on the situation.
I love the physical convenience and that the process of opening an account, applying for a physical debit card and funding it was entirely done online.
On the flip side of things, what happens when the Singlife mobile app isn’t available? Poof goes the accessibility. Googling online, it seems like this is a known issue that the mobile app does experience downtimes and unexplained errors sometimes.
It happened to me, too. I find that using the app during off-peak hours yielded better results but this is purely my personal experience. This is the kind of issues I really wanted to share when I’m writing my Singlife review. This was one area that I think people should be aware of.
It’s fine if everything goes digital and works as intended. It isn’t quite the same when the system isn’t 100% reliable and you needed the money urgently. I could imagine such a situation causing quite some anxiety if it happened.
3. Liquidity – withdrawing money (no lock-in)
As a place to park emergency funds, one of the more important criteria is that of liquidity. To be able to access the funds in the account in a timely manner and being able to withdraw it is of utmost importance.
Funds in the Singlife Account can be accessed in two different ways –
- FAST transfer to my bank account
- Clocking expenses to my Singlife Visa Debit card
In addition, there is no “lock-in” period which means that my money can be withdrawn at any time without penalty.
When I tested out the withdrawal experience, withdrawing funds was almost instantaneous. However, take note that funds withdrawing is subjected to a minimum of $100 per withdrawal left in your account (i.e. minimum balance). so you’re not going to be able to withdraw tiny sums of money repeatedly.
Included in the Singlife account is a free Visa Debit card which you can apply for as an alternative means of using the funds. I couldn’t quite figure out why the need though, because no matter how you look at it, the intention of this account is firmly in the savings arena. Still a “good-to-have” option, I guess?
The website does tout it as having no FX fees and no annual fees but I didn’t test it out.
4. How safe and reliable is Singlife account?
In terms of whether Singlife can be “trusted”, the recent news of the merger between Singlife and Aviva would have garnered quite a significant of credibility for Singlife. If you were unaware, Singlife is certainly no lightweight.
Prior to this news, Singlife had acquired the business portfolio of Zurich Life Singapore and S$6 billion worth of coverage in 2018 for life, critical illness and disability benefits. Singlife became a fully licensed direct life insurer in 2017 and markets itself as a digital insurance company, using cutting-edge technology to streamline applications and claims and keep premiums low.
On the regulatory side of things, Singlife is a direct life insurer licensed by the Monetary Authority of Singapore (MAS). I’d copy and paste the information on Singlife official website and re-iterate that all Singlife policies, including the Singlife Account are covered under the Policy Owners’ Protection (PPF) Scheme administered by Singapore Deposit Insurance Corporation (SDIC).
The PPF Scheme protects policy owners in the event a life insurer which is a PPF Scheme member fails. Reference link here.
In short, the Singlife account is capital guaranteed with no hidden fees or charges, up to the specified amount by SDIC.
5. Bonus protection
As mentioned, due to its nature as an insurance savings plan, my Singlife Account policy provides life insurance coverage of up to 105% of your Singlife Account value and retrenchment benefits.
For free! The benefits can be on Singlife official website so check it out for details. Needless to say, retrenchment benefits is an amazing advantage in the current economic climate.
Update effective as of 1st November 2020
Shortly after posting on my blog, I was notified that crediting rates will be revised from 2.5% p.a. to 2.0% p.a. for the first S$10,000 from 1 Nov 2020. There will be no change in the crediting rate of 1% p.a. for your next S$90,000. However, you can keep earning 2.5% p.a. returns under the Save, Spend, Earn Campaign.
I don’t have time for a new blog post but I have this little tip (I received via email) for you : All purchases that can be made using your Singlife Visa Debit Card count toward qualifying for bonus return. There are no Merchant Category Code (MCC) exclusions hence any category of spend is included.
This includes bill payments, insurance premium payments, mobile wallet top-ups. However, it is within the discretion of the merchant themselves if they accept the Singlife Visa Debit Card as a form of payment.
Compare insurance savings plans with other options in my complete cash management guide.
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Kevin started Turtle Investor after hitting rock bottom at negative $25,755 net worth. Today, his monthly alternative income pays for all his daily expenses. He shares what actually works (and what doesn’t) for Singaporeans building wealth. Learn more about Kevin here.
Hi,
It makes sense to spread the eggs into various baskets. Singlife can be one of such baskets which may generate the more eggs for one.
WTK
Hi WTK,
Yes indeed! Thanks for writing.
I enjoy the mindfulness aspect that you have thoughtfully included in your blog posts. It is one area that I should really indulge more time in.
Singlife has a max withdrawal limit of $20,000 per day.
Hey Fz! Thanks for sharing!
You would have received email on the interest rate drop to 2% come November 2020. Will need to evaluate if spending $500 for the extra 0.5% is worthwhile – my first thought is there are better alternatives.
Hi Carl!
Same thoughts. But there are some use cases – situations that would otherwise not earn any rewards anyway. Besides, I won’t be losing any sleep over a few dollars a month. Don’t sweat the small stuff ;)
Hi Kevin,
Any more details on how one can spend the 500$ using Singlife debit card? I noticed your comment regarding bill payments, but given Singlife doesn’t offer bill payment services at their website / app, I tried AXS e-station which itself doesn’t accept Singlife debit card (Visa). I wonder how if at all one can utilize the Singlife debit card for any bill payments (Also, it remains to be seen if merchants accept / reject this card at retail outlets too)
Cheers, Rohan
Hey Rohan,
From what I know, basically anything that can use debit card to pay for, you can use it. Most bill payments don’t allow credit/debit cards and some that do utilize a third-party Cardup etc.
I have not experienced any form of the Singlife card being rejected either in retail (Singapore) or overseas platform. Is there a reason that you think it will be so, or your personal experience?
I previously used it to top up Grab-Pay wallet and to the best of my knowledge, it still works.