NTUC Capital Plus is a very popular short-term savings plan in Singapore with Guaranteed interest.
The insurer NTUC INCOME has just launched a new tranche CPN36. This tranche is a
- 3-year non-participating, single premium endowment plan
- Guaranteed returns of 2.15% p.a
This plan also provides protection against death, and total and permanent disability (TPD) during the policy term (if TPD occurs before the age of 70).
Who is Suitable For This Endowment Plan
This product is suitable for those who have disposable lump sum cash for saving over a 3-year tenure and looking for:
- Guaranteed returns
- Capital Guaranteed upon maturity
- Hassle-free application with no medical check-up required
Note the Guaranteed Return is on a compounding basis. It means the total return is higher if it were simple interest.
The policy illustration per $10,000 premium is shown below, your total return is $10,000 * (1+2.15%) * (1+2.15%) * (1+2.15%) = $10,658.95
Higher Return than Singapore Savings Bond
This product is comparable to Singapore Savings Bond. The latest offer by Singapore Savings Bond (SSB) has only an average simple interest of 2.05% if you hold it for 3 years. So if you invest $10,000 into SSB, you will only get back $10,616 after 3 years.
Limited Tranche, First Come First Serve
As Capital Plus (CPN36) is a limited tranche product and it is very popular among Singaporeans, the acceptance of the application is on a first-come-first-served basis. The product will be withdrawn upon attainment of tranche size. Any excess premium received above the tranche size will be refunded accordingly to customers.
Based on previous tranches, we should see the product to be sold off in a few days’ time.
Update: On the first day of the product launch on 2nd Oct 2018, NTUC Capital Plus CPN36 has been fully subscribed. If you want to be updated for such products in the future, subscribe to my mailing list via the form below.