Great Eastern Great SP Series 3: 3-Year Endowment Plan with 1.55% p.a. Guaranteed Returns
The interest rate for this month’s Singapore Savings Bond (SSB) had many Singaporeans looking for an alternative to park their savings.
Riding on this opportunity, we expect financial institutions out there to come out with more attractive investment and saving products for Singaporeans.
Following their previous launches, Great Eastern has made their move again.
Great Eastern GREAT SP Series 3
Great Eastern just launched GREAT SP Series 3.
This new online endowment plan offering a guaranteed return of 1.55% per annum.
While the return pales in comparison with the Great220 launched in 2019, I guess we will have to make do with the options available for our current climate.
On top of that, with the current stock market situation, this might be a good alternative to your savings if you are too afraid to dip your toes into the stocks market.
But let’s not digress, here’s all you need to know about Great Eastern GREAT SP Series 3.
Disclaimer: This is not a sponsored post. All opinions are our own, we just like to help!
1. Minimum Premium Of $10,000
You can now invest in GREAT SP Series 3 with a minimum premium of $10,000.
This is a single premium non-participating endowment plan that comes with three different tiers of benefit based on the total premium you put in.
We will illustrate the various tiers of benefits further down this article.
2. Short Term Investment With 3-Year Tenure
As a short-term investment, your money can be redirected again after your 3-year tenure.
3. Invest with Cash, Cheque, AXS, Bank Transfer or SRS Fund
Great SP allows you to invest through your Supplementary Retirement Scheme (SRS) Fund.
Ensure that your SRS contribution does not exceed your balance contribution limit available.
Applying online makes it rather simple since you can simply use eNETS for your payment.
Do ensure to update your eNETS limit before applying!
Otherwise, if you’re investing through an adviser.
4. Death and Total Permanent Disability (TPD) Benefits
In case of death and Total Permanent Disability (TPD), the plan pays out 105% of the single premium, or the surrender value of the policy, whichever is higher.
Yearly Returns of GREAT SP Series 3
I know what you’re thinking, you don’t have $50,000 sitting around somewhere, neither do I.
If setting aside $10,000 for 3 years is a feasible idea, here’s how much you will be able to receive.
There are two payout options that you can choose from:
- The Paid-Out Option to receive your cash payout annually
- The Accumulation Option to reinvest the cash payout from your first year to generate more interest.
Given a 1.55% per annum return, for a $10,000 premium.
- The Paid-Out Option will give you a return of $465.
Of which, $155 will be paid to you on your first year, another $155 on the second, and the last $155 at maturity.
- The Accumulation Option will give you a return of $479, based on an illustrated maturity yield of 1.67%.
But you will only receive it upon maturity.
Pros of Great Eastern GREAT SP Series 3:
- Guaranteed returns
- Capital Guaranteed upon 3-year maturity
- Hassle-free online application with no medical check-up required
Cons of Great Eastern GREAT SP Series 3:
Similar to other endowment plans, you are required to lock in your money for a period of time.
Remember, you know your own situation the best, so plan ahead and make sure your cash flow works!
Should I Invest In GREAT SP Series 3?
If you were previously looking at low-risk investments such as Singapore Savings Bonds and Fixed Deposits, GREAT SP Series 3 can also be part of your consideration.
This is assuming you have a sum of money ready to be locked in for the next 3 years.
It is important to always do your own homework, even after reading our articles!