Interest rate for SMA monies
Savings in the Special and Medisave Accounts (SMA) currently earn either 4% or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is the higher. The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period. The average yield of the 10YSGS plus 1%, from March 2013 to February 2014, is 3.19%. Therefore, the SMA interest rate from 1 April 2014 to 30 June 2014 will be maintained at the current floor of 4%.
Interest Rate for RA Monies
New Retirement Account (RA) savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4%, whichever is the higher, adjusted yearly. Given the lower 10YSGS yield, new RA savings will earn a fixed coupon of 4%.
An additional 1% interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the member’s Special Account (SA) or RA to enhance his retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the additional 1% interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.
NTUC Income has just re-launched a new limited tranche of Single Premium Savings/Endowment Plan, SP SAIL, with immediate effect. NTUC Income will stop accepting applications once the allocation is reached.
This is a guaranteed acceptance savings plan, which provides protection against Death and Total Permanent Disability (TPD)
- 105% of the single premium for standard life or
- 101% of the single premium for non-standard* life, plus 100% of the accumulated bonus.
The minimum entry age is 25 Last Birth Date (LBD) and maximum entry age is 60 LBD. The accumulation period is 10, 15, 20,25, 30 years or up to 55, 60, 62, 65 LBD. You can use cash or SRS money to save with SAIL. The minimum amount for SAIL is $10,000.
What is SP SAIL plan?
SP SAIL is a single premium participating endowment or retirement plan with a minimum accumulation period of 10 years. At the end of the accumulation period, you can choose to
- withdraw the full maturity value, or
- withdraw partial maturity amount and redeposit the remaining cash with Income. The minimum deposit amount is $10,000. You will then withdraw your savings in 20 annual installments.
- Save the full maturity amount with NTUC Income to withdraw your savings over the next 20 annual installments. Some additional conversion bonus will be given for this option.
Monthly payout is available if the actual conversion value is $50,000 and above. The second or third option serves as a very good retirement plan that will complement other annuity plan or CPF LIFE scheme mandated by CPF Board, which provides streams of income payment during the retirement years.
*Non-standard life refers to an insured suffering from any of the following medical conditions, at the time of application, within three months from cover start date:
- Heart and/or Heart Valve Conditions
- Chronic Kidney Disease
- Liver Cirrhosis and/or End Stage Liver Failure
- Systemic Lupus Erythematosus
- Terminal Illness
- Severance or total loss of use of one or both limbs OR total loss of use of one or both eyes
NTUC Income has just launched the Regular Premium Policies Promotion from 8th Jan 2014 to 28th February 2014. You will receive up to $500^ CapitaMall shopping vouchers when you apply during the promotion period.
Minimum Monthly Premium
Premium payment term of 5 to 9 years
Premium payment term of 10 years and more
^ For policies with premium payment term of 5 to 9 years, voucher amount is capped at $250 per policy.
For policies with premium payment term of 10 years and above, voucher amount is capped at $500 per policy.
The qualifying plans are as follows:-
2. Endowment Plan
3. Family Insurance Plan
4. Harvest (GIO)
6. Mortgage Plan
7. Protection/ Limited Pay Protection
8. RevoSave/ Limited Pay RevoSave/ Limited Pay RevoSave (5-Pay-10)
9. SAIL (Regular Premium)
10. Senior Plan
Terms and Conditions apply. Click here for more information.
Savings in the CPF Special and Medisave Account (SMA) currently earn the higher of either 4% or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period. The average yield of the 10YSGS plus 1%, from 1 December 2012 to 30 November 2013, is 2.93%. Therefore, the interest rate for CPF SMA will continue to be 4% p.a. from 1 Jan 2014 to 31 March 2014.
Savings in CPF Retirement Account (RA) earn the higher of either 4% or the 12-month average yield of the 10YSGS plus 1%, and adjusted yearly. Therefore, the 4% p.a. interest rate will apply to CPF RA from 1 January 2014 to 31 December 2014.
The additional 1% interest will continue to be paid on the first $60,000 of the combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the SA or RA to enhance the retirement savings.
From 1 January 2014, the Medisave Required Amount (MRA) will be adjusted to $40,500 from the current $38,500, which is the same as the Medisave Minimum Sum (MMS). This is the amount that CPF members are required to top up to the Medisave Account (MA) to the current MMS/MRS when they make a CPF withdrawal at age 55.
CPFB will distribute $29m of surplus from its Dependants’ Protection Scheme (DPS) to members who had active covers when DPS was privatised on 17 September 2005. This rebate will be credited to their CPF OA on 15 December 2013.
VivoChild is an Education Plan specially designed for your child’s education in Singapore, from Primary 1 to University years. You save regularly every month and NTUC Income will pay you cash benefits when your child is in Primary 1, Primary 6, Secondary 4, Junior College 2 and the 3 years in university institution. You can either spend it or deposit back with Income at the current 3.5% p.a.. You can withdraw the cash deposit anytime you want, with a minimum withdrawal of $500. VivoChild also pays $100 per day of hospitalisation for Hand Foot Mouth Disease, Dengue Fever and Food Poisoning.
Not only does VivoChld offers better interest rate, it provides free protection against death and Total permanent Disability (TPD, which is Lost of sight, two legs etc.) to your child. Importantly, should death, TPD or 30 critical illness were to occur to the parent, all future premium will be waived. You are assured that your intention of the education fund that you plan to save will not be disrupted by any of the mishaps.
This is how VivoChild works.
1) You save a fixed sum of money to NTUC Income for 5, 10 years or full term, and the policy matures at age 20 or 22 years old.
2) At the important milestones of your child (P1, P6, S4, JC2 & University years), NTUC Income will return part of the premium back (called cashback) to you. You can choose to
a) Spend it.
b) Save at current 3.5% per annum interest in deposit account issued by Income
3) At any point in time, you can withdraw the money from the Deposit account, with minimum withdrawal of $500.
Supplementary Retirement Scheme (SRS) is a voluntary saving scheme introduced by the government to encourage Singaporeans to save more for their old age. Singaporeans and foreign workers can open an SRS account at any branches of the 3 SRS Operators — DBS, OCBC and UOB. Participants can then contribute up to $12,750 (for Singaporean and Permanent Residents, or $29,750 for foreign workers) to SRS at their own discretion yearly.
One immediate benefit for participating in SRS is that you can claim tax relief for contributions made to SRS. Each dollar of SRS contribution will reduce your income chargeable to tax by a dollar. This works out to be a total savings of up to $2,550, depending on your Income Tax Bracket and the SRS contribution. You will need to contribute to the SRS account before 31 Dec of each year in order to enjoy the tax relief in the next year of assessment of income tax.
Before end of this year, you can reduce your income tax by contributing to your Supplementary Retirement Scheme (SRS). And read on NTUC income products that will help to grow your SRS money that beat the silent thief, i.e. inflation.
Let’s look at the two examples below. Continue reading
NTUC Income has just launched a new short-term savings plan, LP Revosave (5 pay 10) with the feature of allowing you to withdraw cashback (5% of Sum Assured) from the end of 2nd year onwards.
This plan provides a very good alternative to savings in a bank. Not only it offers better interest rate, it provides protection against death, Total permanent Disability (Lost of sight, two legs etc.) regardless of your current health. It is 100% guarantee to be accepted. You will be covered for 105% of the premium paid-to-date throughout the term.
This is how LP Revosave (5 Pay 10) works.
1. You save a fixed sum of money to NTUC Income for 5 years.
2. At the end of second year, NTUC Income will return part of the premium back (called cashback) to you. You can choose to:
(a) Spend it.
(b) Save with us at current 3.5% per annum interest in deposit account issued by Income
3. At any point in time, you can withdraw the money from the Deposit account.
The policy will mature in 10 years’ time. An example for a Male age 40 years old with Sum Assured $23,850 is as shown in the table below:
||Yearly Cashback (From 2nd year onwards)
||Total Premium Paid
||Total Cash upon maturity (Non-withdrawal)
||Total Cash upon maturity (With yearly withdrawal)
($1,192.50 yearly plus $25,007 upon maturity)
NTUC Income has just launched a flexible savings plan, VivoSave, with limited pay of 10 years or 15 years only. VivoSave can also be used as a legacy plan for the 3rd generation if it is bought by you for your child. Your grandchildren will stand to benefit from the protection too!
Guaranteed cash benefit1 payouts
With VivoSave, you choose to pay for 10 or 15 years, and you will begin to receive guaranteed yearly cash benefit1 after the completion of your premium payment term.
Cash benefits payable to policyholders
after the end of premium payment term
1st to 10th year
3% of sum assured
11th to 20th year
6% of sum assured
21st year onwards
8% of sum assured
The choice is yours
Need some money for home improvements or to send your child on an educational trip? You can withdraw your cash benefit and spend, any way you like. Otherwise, you can also deposit with us at an interest rate of up to 3.50% p.a.4.
Extended death benefit for 10 years
In the event of death after the 5th policy year, your loved ones will still receive guaranteed yearly payouts2 of 8% of the sum assured for 10 years.
Protection against death and total and permanent disability
We know having well-rounded protection gives you peace of mind. That is why VivoSave also provides coverage for Death and Total Permanent Disability (TPD before age 65).
Lump sum maturity benefit3
At age 85, you will receive the lump sum payment of
- Final cash benefit1 (8% of the sum assured)
- Full amount of the sum assured
- Accumulated bonuses5
How VivoSave works for you?
NTUC Income has just launched a new short-term savings plan, LP Revosave that only requires you to save for 5 years or 10 years.
You will be able to draw down cashback of 5% of the Sum Assured from the end of second year onwards till maturity.
LP Revosave provides protection against death, Total permanent Disability (Lost of sight, two legs etc.) regardless of your current health. It is 100% guarantee to be accepted. You will be covered for 105% of the premium paid for the first 3 years. From the beginning of 4th year, you will be totally covered with the Sum Assured, that means, full coverage!
This is how LP Revosave works.
1) You save a fixed sum of money to NTUC Income for 5 or 10 years.
2) At the end of second year, NTUC Income will return 5% of Sum Assured (called cashback) to you. You can choose to
a) Spend it.
b) Save with us at current 3.5% per annum interest in Deposit Account issued by Income
3) At any point in time, you can withdraw the money from the Deposit Account.
NTUC Income Regular savings plan, DreamSaver, is a short-term savings plan for everybody, regardless of your health status! It is guaranteed acceptance with 101% or 105% protection value with bonus.
Dreamsaver only requires you to save for 5 years. You can start to withdraw your FULL monthly premium back from the 6th years to the maturity term (8 or 10 years), without affecting the Protection Value during the drawdown. Not only it offers better interest rate of 3.06% p.a., it provides protection against death and Total permanent Disability (Lost of sight, two legs etc.).
This is how DreamSaver works.
1) You save a fixed sum of money to NTUC Income for 5 years.
2) From the 61th policy month (6th year), NTUC Income will give you cashback of an amount equal to your monthly premium every month till maturity at the 8th or 10th year. You can choose to:
a) Spend it.
b) Save with us at current 3.5% per annum interest in deposit account issued by Income.
3) At any point in time, you can withdraw the money from the Deposit account.
4) Upon Maturity, you will also receive the terminal bonus declare by NTUC Income.
An example is as shown below:
|Monthly Cashback (From 61st month onwards)
|Total Premium Paid
|Guaranteed Maturity Amount
|Total Cash upon Maturity (Non-withdrawal)
|Total Cash upon Maturity (with Monthly Withdrawal)
||$6,300 to $67,491
For further enquiry, askGinny.