NTUC income capital plus 2.30 p.a.

NTUC Capital Plus (CSN2): Short-Term Endowment Plans And Factors To Consider

2 min read

NTUC Income Capital Plus (CSN2)

NTUC Income has launched a new tranche for their popular short-term Endowment Plan again.

The new tranche of NTUC Capital Plus (CSN2), fetches an interest rate of 2.3% per annum.

Note: We are not sponsored to do this. All opinions are our own, we just like to help you!

The Correct Mentality For Consumers When Getting Short-Term Endowment Plans

Like most short-term endowment plans, here are some key pointers to take note of, when deciding on taking up such plans.

  • Do not feel pressured to take policies up simply because of marketing gimmicky words such as “tranche”, “limited time only” and “while stocks last”.
  • There is no lack of good financial products around as long as one does his research.
  • Always take note of the fine prints for any policy and investment instrument.

Now, assuming we successfully adopted the above mindset, let’s take a closer look at the NTUC Income’s Capital Plus (CSN2).

Key features of NTUC Income’s Capital Plus (CSN2)

  • 3-year single premium – consumers will invest a lump sum into the policy which lasts for 3 years.
  • The policy earns an interest of 2.30% every year. This return is guaranteed.
  • Your health condition will not affect your ability to get this endowment plan.
  • Minimum investment of S$20,000.
  • One can choose to use either cash or SRS for this endowment plan.
  • This plan covers death and total and permanent disability (TPD) before 70.

A quick glance at the returns on NTUC Capital Plus (CSN2)

NTUC income capital plus 2.30 p.a.

Policy Illustration Per $10,000 Premium

  Death BenefitSurrender Value
End Of Policy YearTotal Premiums Paid To DateGuaranteedGuaranteed
Maturity Value

Source: InsureDIY.com

Short term, moderate returns

According to an article which Seedly wrote a while back, the NTUC Income’s Capital Plus (CSN2) falls under the category of the short-term endowment plan.

Years vs Investment products and risk


For short-term endowment plans, here are some of the advantages and disadvantages.

Pros of NTUC Income’s Capital Plus (CSN2)

  • Relatively low risk given that they are products of reputable insurance companies
  • Guaranteed returns
  • No worry about losing principal sum upon maturity
  • Helps beats inflation

Cons of NTUC Income’s Capital Plus (CSN2)

  • A relatively large sum of money required upfront. (In this case, it is $20,000)
  • A lock-in period of 3 years

There were a few products in the past that could compete comparatively to the NTUC Income’s Capital Plus (CSN2):

Note: The above plans are no longer available.

Who Is This Policy For?

  • Consumers of Singapore Savings Bonds, Fixed Deposits. This is another alternative to that.
  • Risk-averse investors looking to beat yearly inflation (core inflation at an average of 1.9% for the past 10 years).
  • Investors looking to diversify their portfolio in the short-run.
  • Definitely a better option than letting your money sit in the bank.
  • Probably not for active investors looking for a longer investment horizon.

How Can One Start Saving With NTUC Income’s Capital Plus?

  • Over at NTUC Income’s website
  • Contact Your Trusted Financial Advisor From NTUC Income
  • Visit any Income branch

Seedly Personal Finance Community: Investing with Supplementary Retirement Scheme (SRS)

We understand that that NTUC Income’s Capital Plus allows consumers to use Supplementary Retirement Scheme (SRS).

  • Terence Lio, a contributor to the Seedly Personal Finance Community states that while people start their SRS to save on tax, such financial products can be seen as a bonus on top of the tax saved.
  • Christopher How also mentioned that while getting the policy in cash makes sense. Using of SRS to invest and not being able to withdraw the money until years later should be a factor to consider.

Here is our Community’s take on this product:

  • Damien Png – My take: A good product for those who put into FD or SSB every year. This is for extremely low risk. 2.72% is higher than SSD/FD/SD and most longer-term endowment plan. If you need something to give good returns and won’t use the money up from now till 2023, go ahead and sign this up.
    Plus, it gives you some insurance coverage. Even better if you use your SRS.
  • Soon XiaoHui – As long as this amount is not your emergency fund, & you can hold for 5 years, why not. Every year such plans will appear, so don’t just 1 time put a large figure.

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