What happened?
With interest rates on the decline, yields on fixed deposits (FDs) and Singapore T-bills have been slipping too. The latest 6-month T-bill yield dropped to 1.85%, while the best 6-month FD rate currently stands at 2.15% per annum. For those seeking a safe place to earn passive income, this has prompted a search for better alternatives. While we previously explored options like money market funds, there’s now growing discussion in the Beansprout Telegram community about endowment plans as an option to earn a decent yield. Some of these endowment plans, with lock-in periods of 2 to 10 years, are offering competitive guaranteed yields. In this article, we break down how endowment plans work, how they compare to other passive income investments, and why they might be worth a closer look in today’s environment.
What is an endowment plan?
Endowment plans are insurance-based savings policies to help you accumulate savings over a…
