NTUC Income Gro Capital Ease

Insurers have been launching various short-term endowment plans over the last 1 year.

Income (known as NTUC previously) has also recently launched a 3 years endowment plan that pays 3.55%p.a. But the reason why I am highlighting the product isn’t for the product itself, but for their marketing message “3 is better than 2”.

IMO, that’s great copywriting (probably written by someone with good financial knowledge too). So if you are wondering if Income Gro Capital Ease is a good saving plan /option, my short answer is yes.

Here’s why.
Back when saving interest rates were really low, it would have been better to do shorter tenure saving plans / plans with flexibility so that we could cash out and reinvest somewhere if interest rates rise. However, in the current environment where our short term savings rates are relatively high (for Singapore at least), it is actually better to opt for the longer tenure plans to lock in a higher rate.
The reverse is true for borrowing rates – which is why I had advise clients to go for the DBS 5 Years Fixed rate previously.

If you are interested to find out more about Income Gro Capital Ease, drop me a note or simply head over to their website to find out more: https://www.income.com.sg/savings-and-investments/gro-capital-ease.

But most importantly, do remember that before selecting the plan/vehicle, it is essential to assess your goals and priorities first.

cheers