Singtel's Dash EasyEarn Insurance Savings Plan Review: Easy Breezy Way to Beat Inflation?
[UPDATE:] Singtel and Etiqa have reduced the rate of returns for Dash EasyEarn. From 25 September 2020, new signups will only enjoy a rate of return of 1.8% p.a. (1.5% p.a. guaranteed + 0.3% p.a. bonus) for the first policy year; down from the previous 2% p.a. (1.5% p.a. guaranteed + 0.5% p.a. bonus) rate of returns.
If you’ve signed up before the revision, you’ll still enjoy the earlier announced 2% p.a.
I’m not going to bore you with how our popular savings accounts have been cutting their interest rates or how the U.S. Federal Reserve cut their interest rate to near zero.
But this low-interest-rate environment and uncertain economic climate have made it harder for us to save and earn a decent amount of interest to beat inflation.
Enter Singtel’s Dash EasyEarn Insurance Savings Plan an insurance savings solution offered through Singtel’s Dash app and underwritten by Etiqa Insurance.
*Information accurate as of 3 October 2020.
Disclaimer: We are not sponsored by these companies. Check out our Seedly Code of Ethics for more information on our editorial values.
TL;DR: Is Singtel’s Dash EasyEarn Review Insurance Savings Plan Worth It?
|Interest Rate||1.5% p.a. guaranteed + 0.3% p.a. bonus for first year|
|Initial deposit required||Minimum of $2,000 and maximum of $20,000|
|Minimum account balance to earn interest||$2,000|
|Account balance cap||$20,000|
|Top up or withdraw anytime, and
get the same rates of returns
|No withdrawal penalties||Withdraw 100% of your capital anytime without penalty|
|Withdrawal to bank account||$0.7 service fee for each withdrawal|
|Withdrawal to Dash wallet||Free|
|Topups||Minimum of $500 in multiples of $500*|
|Life insurance coverage for death||105% of the account value|
|Capital Guarantee||100% capital guaranteed by SDIC with cap**|
*The maximum aggregate amount for all Top-up(s) per policy is capped at the $20,000 account balance limit.
**The policy is protected under the Policy Owners’ Protection (PPF) Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you.
According to SDIC, the amount insured (amount deposited) has a guaranteed surrender value at the point of failure that is capped at $100,000.
There is also a cap of $500,000 for the aggregated guaranteed sum assured.
No further action is needed from you.
Is this plan as good as it seems?
Let’s dive straight into it!
What is the Singtel Dash EasyEarn Insurance Savings Plan?
According to Etiqa Insurance, EasyEarn is a single premium, non-participating universal life plan denominated in Singapore dollars.
Do note that the policy will only mature on the policy anniversary immediately before the Life insured attains 100 years old.
This insurance savings plan offers a guaranteed 1.5% p.a. and an additional 0.3% p.a. bonus returns for the first year for policyholders who sign up within an unspecified limited time.
This adds up to a guaranteed 1.8% interest rate for the first year… at least.
To open the account, you will also need to make a minimum deposit of $2,000 (up to a maximum of $20,000).
And maintain the average daily account value of $2,000 to earn interest.
This is considered the first single premium that you will pay to the plan.
Although this is termed as a universal life plan, the coverage is not as comprehensive as compared to traditional universal life plans.
In a sense, this plan is somewhat similar to the Singlife Account insurance savings plan with its high liquidity and added functionality that is comparable to bank savings accounts.
However, EasyEarn is more restrictive with deposits and withdrawals than the Singlife Account.
Do note that this particular product is sold online without advice.
If you’re unsure if you should commit to such a product, I highly encourage that you seek proper advice from a certified financial advisor.
How does Singtel Dash EasyEarn Work?
All you need is Dash.
In order for you to purchase or manage the Dash EasyEarn plan, you will need to signup for a Dash account.
After getting a Dash account you can then proceed to signup for the plan.
The signup process is quite simple.
Just verify your personal details and make a minimum deposit of $2000 to get started.
Do note that this plan is only open to Dash users aged 17 to 75 with a valid Singapore NRIC or Singapore residency/workpass through the Dash app.
And is subject to acceptance by Etiqa Insurance Pte. Ltd.
Subsequently, you can top up your plan or make withdrawals to your bank account or Dash account with no lock-in period or penalties for early withdrawal.
For those thinking of gaming the system, you can only sign up for one EasyEarn plan per person.
As for the returns, the interest is accrued on a daily basis and credited monthly.
On top of that, the returns will only be credited if you maintain a balance of at least $2,000 in your account at all times.
Is Singtel Dash EasyEarn the Best Option For Me?
Before you sign up, it is important for you to know the downsides to the Dash EasyEarn plan.
Cons of Dash EasyEarn
Firstly, your access to the funds is somewhat restricted.
For top-ups to the account, you will need to top-up a minimum of $500 in multiples of $500.
For withdrawals, you will need to withdraw a minimum of $100 in multiples of $100.
Even though withdrawing to your Dash account is free.
You’ll be charged $0.70 if you make any withdrawals to your bank account instead.
See how this is a problem?
If you don’t want to pay that (small) withdrawal fee, your money will be ‘locked up’ in your Dash account so be careful with that option.
Unless you accumulate the money and withdraw it all at one go.
But you’ll probably still have a few dollars left since withdrawals are only allowed in multiples of $100.
Another thing to note is that on the Dash EasyEarn FAQ page there is a line that states:
Please note that Etiqa Insurance reserves the right to delay the payment of the partial withdrawal amount for up to a period of 6 months from the date of your withdrawal application.
This line is standard for Etiqa’s other life insurance policies, so make of it what you will.
Pros of Dash EasyEarn
If you can live with the cons, EasyEarn has some upsides.
The plan is offering a guaranteed 1.8% p.a. return for the first year with a decent amount of liquidity as you can withdraw or deposit funds into the plan at any time.
Even after the first year ends, you will still enjoy a 1.5% p.a. rate of return.
There is also the bonus of the death coverage of 105% which you don’t get with bank savings accounts or money management accounts.
(Do check their product summary for the terms and conditions of this benefit)
On top of the coverage, there is also no fall below fee that some bank accounts might charge.
This means that you can withdraw everything from this account and not worry about extra charges.
Aren’t you glad we have so many options?
In this low-interest rate environment, EasyEarn is a decent option if you want someplace to store your emergency fund, investment war chest or save up to fund an upcoming expense.
If you can live with the restrictions on withdrawals and deposits, this plan is still very liquid as compared to traditional endowment plans.
In addition, you get the benefit of a higher guaranteed interest rate without having to jump through hoops like salary crediting, meeting the minimum spend on credit cards.
Overall, this is a fuss-free option for you to park your money and beat the prevailing inflation rate — at least for the first year.