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8 Best Endowment Saving Plans In Singapore (2024)

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There are a variety of savings products available in Singapore. It can be overwhelming to choose one that will help you meet your financial goals. One of the relatively popular savings products in the market are endowment plans.

Endowment savings plans are part savings plan and part insurance plan. It is typically considered as a way to save for education, retirement, or other fixed milestones. Singaporeans choose this type of insurance plan to increase their savings over a set period.

However, endowment savings plans are different from savings accounts. With a savings account, you can earn interest and withdraw money at any time. But savings accounts are subject to inflation which can put your interest earned to lose value over time.

Types of Savings Plans

Bank Savings Account Savings Plan Investment-Linked Policies (ILP)
Type Bank Account Insurance Endowment Insurance + Investment
Liquidity Immediate Based on the maturity of the plan Based on the maturity of the ILP
Investment Risk NIL No risk for savings plans that are non-participating

There is investment risk for participating

Subjected to investment risk
Protection Coverage NIL Death coverage, may add on a rider for TPD and CI coverage Death coverage, may add on a rider for TPD and CI coverage
Guaranteed/Non-guaranteed Bank interest tend to be lower, but guaranteed Guaranteed portion + Non-guaranteed portion Non-guaranteed
Returns Low, 0.05% interest earned in normal savings account Medium, up to 4.75% returns High, no cap in returns

Why Should You Get an Endowment Savings Plan?

Endowment plans are a great investment option if you have medium- to long-term financial goals. But before you start shopping for an endowment plan, it’s best to understand the purposes behind different savings plans:

Endowment Saving Plan Singapore For Savings / Retirement / Child Education

  • Forced Savings: You can think of endowment plans as forced savings. When you enroll in an endowment plan, you are required to contribute regular payments for a specific period. This is perfect if you have financial goals such as buying a house or getting married.
  • Retirement: Endowment plans are also a good way to prepare for retirement. Invest in it in addition to your supplementary retirement scheme.

Supplementary Retirement Scheme (SRS) is a voluntary scheme to save up for retirement. This plus an endowment plan will help ensure that you have a stable source of funds after retirement.

  • Child Education Fund: Education is expensive. Higher education is even more so. That said, you’ll need to prepare for it and endowment plans are perfect since it offers predictability. You can consider a plan that matures when your child begins tertiary education.

Endowment Plan As An Investment

An endowment plan gives you an opportunity to invest. The insurance company will use your contribution to invest in the financial product range. And when your plan reaches maturity, you’re going to receive payouts.

If you need cash by the maturity date, such as if you’re going to buy a house, then you can be assured that you’ll have access to your money.

Endowment Plan As Insurance

There are endowment plans that offer insurance. The policy comes with a sum-assured tag. For instance, the policyholder is offered a payout in case of death or total and permanent disability.

However, the insurance coverage offered by these plans is not enough on its own. It can act as a supplement to your existing insurance policy.

Best Short-Term Endowment Savings Plans

As previously mentioned, endowment plans are part savings plans and part insurance plans. It’s a great option if you want to hit a financial goal at a later date.

But what if you don’t want to wait a decade or more to get a payout? You can consider getting short-term endowment savings plans.

Short-term endowment savings plans offer short commitment periods and simple mechanics. That said, it’s a viable alternative to fixed deposits or savings accounts.

Here are some of the best short-term plans to consider.

1. Great SP Series 4

The Great SP Series 4 is offered by Great Eastern and is a short-term endowment plan. It guarantees 1.30% returns per annum which makes it a great alternative to fixed deposits. The minimum deposit amount is S$10,000, but the minimum amount may change depending on your age.

Interest Rate: 1.30% p.a. guaranteed returns

Policy Term: 2 years. It has a death benefit of 105%, or surrender value of the policy- whichever is higher.

Withdrawal/payouts: Based on a single premium of S$100,000, you’ll receive a total guaranteed payout of S$102,600. If you opt for the accumulation option, you’ll receive a total illustrated payout of up to S$102,632

Maturity Benefit:

  • Offers guaranteed returns of 1.30% p.a. upon maturity
  • You can purchase the plan online
  • Requires no medical assessment
  • Option to withdraw funds at the end of each year or reinvest them for more savings
  • The Life insurance component offers death coverage at 105% of your total premiums paid and coverage for total and permanent disability until you turn 65.

Tranche: The new tranche is open for application. You can apply online.

2. DBS SavvyEndowment 5

The DBS SavvyEndowment 5 plan is a 3-year, single premium endowment plan that offers up to 2.47% returns per annum. You can get your capital back at the end of the policy term. Plus, you’ll have coverage for death benefits at 101% of the single premium.

Interest Rate: Up to 2.47% p.a. returns

Policy Term: 3 years

Withdrawal/payouts: Based on a single premium of S$10,000, you’ll receive a payout of anything from S$10,136 (guaranteed) to S$10,247.

Maturity Benefit:

  • Returns of up to 0.82% p.a. or up to 2.47% of the single premium paid upon maturity
  • Get your capital back at the end of the policy term
  • Coverage for death benefit at 101% single premium
  • Easy online application with no health check-ups

Tranche: The current tranche is open. However, you’ll need to be a DBS/POSB customer to apply. Simply log into the digibank and your personal data will be auto-filled.

3. LIC Wealth Plus 6

LIC Wealth Plus 6 gives excellent returns with a 5-year maturity period. It has a minimum premium of S$20,000 and guarantees a simple interest rate of 1.20% p.a. or 1.25% p.a.

Interest Rate: 1.20% p.a. or 1.25% p.a. returns

Policy Term: 5 years

Withdrawal/payouts: Based on a premium of S$20,000, you’ll receive a payout of S$20,240.

Maturity Benefit:

  • Receive a guaranteed return of 1.2% per year for all single premiums from S$20,000 to S$45,000
  • Receive a guaranteed return of 1.25% per year for single premiums from S$150,000 to S$200,000
  • Coverage for death benefit at 101% single premium
  • Easy online application with no health check-ups

Tranche: The current tranche is open for application.

4. Manulife Goal 7

Manulife Goal 7 is a short-term endowment plan with a high minimum payment. Plus, you get to enjoy advanced features which you can’t find in other endowment plan providers. It has a single premium of S$10,000 with a 1.39% p.a. guaranteed.

Interest Rate: 1.39% p.a. guaranteed return

Policy Term: 3 years

Withdrawal/payouts: If you bought a policy at S$50,000 and did not make any withdrawals, you’ll receive a payout of anything from S$51,421 (guaranteed) up to S$52,116 upon maturity.

Maturity Benefit:

  • Guaranteed capital returns
  • For the first 2 policy years, you’ll enjoy a fixed yearly income of 1.39% of the single premium payable at the end of each policy year. This adds up to 2.75% over 2 years.
  • If you don’t make any withdrawals, you can earn up to 4.23% p.a.

Tranche: This endowment plan is currently open. However, you can’t purchase online. You need to speak to a financial consultant and seek advice or apply at the nearest bank branch.

best saving account singapore

Best Mid/Long-Term Endowment Savings Plans

If you’re aiming to save up for significant milestones, mid to long-term endowment plans are worth considering. These plans have a policy year that ranges between 5 years and 25 years.

The regular premium is contributed for the entire premium term and the interest rates indicate how much you can expect upon maturity. However, the returns are not guaranteed.

The payable amount will depend on market conditions, as well as the future performance of the plan provider.

It is best for:

  • Child’s education plan
  • Retirement fund
  • Or saving up for financial goals, such as marriage or buying a house

1. Aviva MySavingsPlan

Aviva MySavingsPlan allows you to enjoy high returns without a lifetime of premiums to pay. It offers excellent flexibility with its premium and policy terms. Best of all, it guarantees 100% of your capital if you hold the policy until maturity.

Interest Rate: Up to 4.75% p.a. returns (non-guaranteed)

Policy Term: 10-25 years

Withdrawal/payouts: You’ll get 100% of your capital guaranteed when you hold the plan until maturity. There’s no early cash withdrawal option.


  • Offers a wide range of both premium and policy terms, from 10 to 25 years.
  • 100% capital guaranteed in the form of a lump sum payout upon maturity
  • Potential to earn bonuses upon maturity, but not guaranteed.
  • Hassle-free application with no medical check-ups required.

What can be improved: Maturity bonuses are not guaranteed. Plus, there’s no early cash withdrawal option. Limited available riders and does not cover terminal illness- although a cancer premium waiver is available.

2. AXA EarlySaver Plus

AXA EarlySaver Plus is an endowment plan that offers guaranteed returns to achieve milestones. It guarantees cash payouts in the last 3 policy years. Plus, you have a choice of premium payment terms of 5 or 10 years.

Interest Rate: Up to 4.75% p.a. returns (non-guaranteed) and up to 1.57% p.a. guaranteed returns in the form of cash payouts in the last 3 policy years

Premium Term: 5 or 10 years

Policy Term: 10-25 years

Withdrawal/payouts: Guaranteed cash payouts in the last 3 policy years. You have the option to reinvest the 1st and 2nd payouts to receive the accumulated benefit upon policy maturity.


  • Offers one of the highest guaranteed returns of up to 1.57% p.a.
  • Get additional payouts to cover outpatient medical expenses, up to S$200 per claim. It has a cap of two events per policy.
  • Hassle-free application with no medical check-ups required.
  • Coverage against death, total and permanent disability, and terminal illness.
  • Additional payout of 50% should the death be due to an accident.

What can be improved: Your capital is not guaranteed. Plus, there’s no option for early cash withdrawal. AXA also has a maximum entry age of 60 years old.

3. Great Eastern Flexi Cashback

Great Eastern Flexi Cashback offers up to 4.75% p.a. and guarantees your capital upon maturity of limited-pay plans. Additionally, it offers a wide range of premium terms.

Interest Rate: Up to 4.75% p.a. returns (non-guaranteed) and accumulation interest rate at 3% p.a.

Premium Term: 5 or 25 years

Policy Term: Not provided on the website. Typically, endowment plans have policy terms that are a little longer than their premium terms.

Withdrawal/payouts: Guaranteed yearly cash payouts after the 2nd policy year.


  • High guaranteed yearly cash payout, which is 6% of the sum assured.
  • You have the option to withdraw cash payouts from the 2nd policy year. You also have the option to reinvest it into your plan for higher savings.
  • Coverage against death, total permanent disability, and terminal illness.
  • Get either 105% of the total standard yearly premiums minus total survival benefits paid or the guaranteed surrender value will be paid out in the event of death.

What can be improved: Only limited-pay plans have capital guaranteed upon maturity. Riders for enhanced coverage are limited- Payer Benefit or Premium Waiver rider.

4. PRUFlexicash

A long-term insurance savings plan, you can use PRUFlexicash as an education policy for your child. It also provides flexibility by offering a Yearly Cash Benefit after the 2nd policy year.

Interest Rate: Up to 4.75% p.a. returns (non-guaranteed)

Premium Term: 5, 20, or 25 years

Policy Term: 15, 20, or 25 years and receive your maturity benefit in one lump sum payout once your policy matures

Withdrawal/payouts: You can choose to receive a yearly cash benefit after the 2nd policy year. This Yearly Cash Benefit is a payout of 5% of the sum assured/.


  • Gives you the option to receive and use the yearly cash benefit after the 2nd policy year.
  • Choose to defer receiving the yearly cash benefit and let it accumulate for an annual interest. However, the annual interest of 3% p.a. is non-guaranteed.
  • Option to buy a new plan of up to 25% of the original sum assured or S$150,00 whichever is lower without the need for medical examination.
  • Offers coverage against death, total permanent disability, and terminal illness. Should any of these occur, you will receive a lump sum of 100% of the sum assured. Plus, you’ll also receive any accumulated bonuses.

What can be improved: PRUFlexicash requires a long-term commitment. Its lowest premium term and policy term is 15 years. Additionally, it also requires medical underwriting, and your capital is not guaranteed.

Endowment Savings Plans Terminologies

  • Premium: This refers to the money you pay or put into your endowment plan. A single premium endowment plan means that you are required to pay a one-time lump sum amount upfront. A regular premium, on the other hand, means you’ll be making a recurring payment for a certain period.
  • Premium Paying Term: There’s a huge difference between premium and policy term. Premium paying term refers to the total number of years you need to pay or put money into your endowment plan.
  • Policy Term: Don’t be confused between premium and policy term. The time it takes for the endowment plan to mature is called a policy term. Traditional endowment plans can stretch over 10, 15, or 20 years, or even up to a fixed age of the account holder.
  • Today, you can also avail of short-term endowment plans with a maturity period of 2-6 years.
  • Capital Guaranteed Upon Maturity: There are endowment plans that are “capital guaranteed” upon maturity. This means when the plan matures, you will surely get back the money you initially put in.
  • However, endowment plans do not guarantee capital if you terminate your plan earlier than the policy term.
  • Maturity Benefit: This is the amount you earn on your initial investment at the end of the term. This is usually expressed as an annual percentage. Some endowment plans only offer guaranteed returns. Others break down the maturity benefit into guaranteed and non-guaranteed returns.
  • Tranches: Endowment plans, especially short-term plans, are not available forever. That said, they are offered in “tranches”. Each tranche has a limited number of policies. So if the tranche has attractive returns, it’s best to avail of it as soon as possible as it closes quickly.

Benefits of Endowment Savings Plans

1. Provides insurance coverage. An endowment plan offers insurance coverage during the policy term, such as death benefits, total and permanent disability, and terminal illness.

2. Lump sum payout. Most endowment plans pay in lump sum once the policy matures.

3. Multi-purpose savings plan. As previously mentioned, it works as a supplement to your insurance policy. But it can also be considered a long term investment benefit.

4. Offer long-term savings. With policy terms ranging from 10, 15, 20, to 25 years, endowment plans offer long-term savings.

5. Offers an option to add riders. Some endowment savings plans give you an option to improve your policy by opting for additional riders. For instance, you can add policies like waiver of premium, accidental death benefit, and so on.

6. Additional Bonuses. You have the potential to earn bonuses upon maturity, however, this isn’t guaranteed.

Important Details To Consider

Planning to invest in an endowment plan? Here are a few important details you need to take into account:

  • Guaranteed Returns: Does the plan offer guaranteed returns? If so, how much? Determine whether the plan’s stability fits your financial goals. If you need insurance that will return your capital, choose plans with guaranteed capital.
  • Non-Guaranteed Returns: The rates for plans with non-guaranteed returns may be tempting. However, the extra cost and expectation may have a higher risk as compared to guaranteed returns.
  • Insurance Coverage: Additional insurance coverage is an attractive feature. However, you need to make sure that you fit the eligibility criteria when the insured unfortunate event happens.
  • Endowment Duration: Short-term endowment plans offer 2-4 years policy terms while offering considerable returns. However, you’ll have to wait for your policy to mature before earning them.
  • Early Redemption: Ask what the penalties are for early redemption.

Questions About Endowment Savings Plans

Frequently Asked Questions About Endowment Savings Plans

1. What’s The Difference Between Endowment Insurance and Savings Account?

Endowment plans are savings plans with an insurance component. It helps build up savings over a long period, typically for 15 years or more. However, there are now short-term endowment plans that help you grow your savings over 5-10 years.

Additionally, endowment offers higher returns than savings accounts, but they are riskier. There’s a chance you won’t get back the total premium paid. These plans are an excellent option if you have long-term financial goals.

Savings accounts, on the other hand, are very straightforward. You store money into it, make deposits, earn interest, and make withdrawals when the need arises.

2. Is an Endowment Plan the Same As Bank Savings Account?

No, endowment savings plans are different from a bank savings account.

When you sign up for an endowment plan, your money will be invested, such as in funds and bonds. The aim is to grow your savings within a set period. Additionally, most endowment plans also offer insurance benefits that cover death, total and permanent disability, and terminal illness.

A bank savings account, on the other hand, is typically attached to an ATM or debit card, or internet banking. This allows you to make withdrawals at any time. Additionally, you may be required to maintain a minimum sum and you can also set up automatic deposits to your account.

3. What Is A Savings Plan Singapore?

A savings plan is a financial product that helps you save for the milestones in your life. It allows you to grow your savings over a fixed period. However, it is structured and requires you to commit to the plan for a fixed timeframe.

For example, if you commit to a 15-year savings plan, it means your money will be locked up for 15 years. You won’t be able to make withdrawals during that time or risk paying a penalty.

4. Are Endowment Plans Worth It Singapore?

Endowment plans require you to invest a certain amount of money and this money will be locked up until the end of the policy. So is it a worthy investment?

Just like any financial product, endowment plans are beneficial only if it meets your needs. Here are a few things to consider to determine whether it’s worth it to purchase a plan.

  • You have a particular financial goal in mind. Endowment plans are designed to help you save for certain milestones. They can be worth it if you need them for your child’s education plan or for saving up money for retirement. This type of plan forces you to save while earning a return at the end of the policy.
  • You need a more disciplined way to save. With an endowment plan, you’re forced to save because you’ll have to make premium payments. Additionally, you cannot withdraw money at any given time or risk paying an early termination penalty.
  • Additional insurance coverage is attractive to you. Most endowment plans also offer insurance coverage. For instance, some offer a death benefit, as well as coverage for permanent disability and terminal illness.

If you have an existing insurance policy, getting an endowment plan as a supplement to that is worth it. However, endowment plans as a standalone insurance plan are not a good idea.

  • You’re looking into investing but don’t want a high-risk investment. Generally, endowment plans are a low-risk investment. Although you may lose money if your capital is not guaranteed, your losses are still capped as compared to other investments such as stocks or bonds.

Additionally, it’s a good financial tool to counter yearly inflation. If you’re an investor, it’s a worthy option to diversify your investment portfolio.

5. Will the Policy Owners’ Protection Scheme (PPF) Act As A Safety Net In Case The Financial Institution Fails?

You’ve probably heard of horrors where the financial institution offering savings plans failed. And as a result, the policyholders were unable to receive a payout.

Thankfully, Singaporeans can be confident in the country’s sound financial system. Licensed Insurers in Singapore are supervised by the Monetary Authority of Singapore (MAS). However, the Monetary Authority of Singapore doesn’t guarantee the soundness of individual Institutions.

That said, the Policy Owners’ Protection (PPF) Scheme has been set up to protect policy owners in case the insurer fails. This scheme provides 100% protection for the guaranteed maturity benefit of insurance plans up to the applicable caps.

For instance, for endowment policies, a cap of S$100,000 for sum assured and S$50,000 for surrender value per policy.

You can learn more about the PPF Scheme here.

6. How Does Endowment Plans Compare To Other Savings Products

  • High-interest Savings accounts

With bank savings accounts, you’ll earn interest on your deposits. You can also “level up” your savings account by crediting your salary, increasing your credit card spend, or paying bills.

The interest rate of savings accounts are unpredictable and may change with short notice. That said, inflation can have a negative effect on your earnings. See what is the Best Saving Account in Singapore.

  • Fixed Deposit

This is a form of investment where you earn a guaranteed interest for your money over a specified period. The earnings may be paid in regular intervals, quarterly, or annually.

With a fixed deposit, you can withdraw money even before the end of the term. However, you’ll earn less interest or no interest at all.

The Singapore Savings Bond (SSB) is fully backed by the Singapore Government. You can get your investment amount back in full with no capital loss. The interest rate usually starts low but it increases every year until the 10th year. You can also redeem any month without penalties.


Bank Savings Account Savings Plan
Type Bank Account Insurance Endowment
Duration No cap on deposit and earns interest up until the account is closed Payout upon maturity, insurance coverage ends
Flexibility You can withdraw any time you need Your money is locked up until the policy matures, with mandatory premiums throughout
Insurance Coverage None Consistent until the end of the policy term
Returns Guaranteed at prevailing interest rates Payout is a combination of guaranteed and non-guaranteed returns
Useful for Managing liquid assets and making day-to-day payments Long-term consistent savings, for milestone financial goals

Best Savings Plan

When choosing the best endowment plan, you need to consider a few factors. First, you need to think about your savings goals. Next, you’ll need to determine how much you’re willing to pay and for how long.

Remember, with an endowment plan, you won’t be able to make withdrawals any time you want. Lastly, consider the policy’s benefits and insurance coverage.

For instance, Aviva MySavings Plan is one of the best endowment plans in Singapore. It promises 100% capital return on your investment, requires no medical checkup, and offers insurance coverage. However, you’ll have to commit between 10 and 25 years to this plan.

Consider Short Term If…

You have a financial goal and have extra cash you won’t be needing for the next two to three years. Your capital is guaranteed, the returns are better than bank savings accounts, and you’ll get insurance coverage as a bonus. But even if it’s a short-term policy, it still requires commitment.

Consider Long Term If…

You are looking to set aside money for long-term goals, such as for your child’s education or for your retirement. These plans require commitment and discipline, especially since you’ll be required to make regular payments throughout the premium term.

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