frugal

Singlife nerfed, now GIGANTIQ?

About 2 months back, I introduced Elastiq by Tiq to you. At that time, I mentioned that it was probably the next best choice after Singlife, the ever so popular insurance savings plan which offered 2.5%. Unfortunately, Singlife got nerfed to 2% recently. As a user of Singlife and a firm believer of what they offer, I was honestly sad to see them get nerfed. Where else could I park my money after the first $10,000 to earn a solid return? That was when I discovered GIGANTIQ.

Comparison with Singlife?

Naturally, I tried to compare Singlife and GIGANTIQ, after all, they are in the same product category, which is an insurance savings plan. Okay, let me cut it short for you. After the nerf, Singlife is slightly better for your first $10,000. But the margin is no longer so big. After that, your next $10,000 will be better off placing in GIGANTIQ for the first year.

Here is a quick comparison table between the 2 products.

Key FeaturesGIGANTIQSinglife Account(After 1 Nov 2020)
Rate of Returns2% p.a.(1% p.a. guaranteed + 1% p.a. bonus for first year)Subsequently, it will be 1% p.a.Up to 2% p.a. non-guaranteed return
Rate of Returns CapFirst $10,000: 2% for first yearAbove $10,000: 1% for first yearFirst $10,000: 2%Next $90,000: 1%Above $100,000: 0%
Initial deposit required$50$500
Minimum account balance to earn rate of returns$50Policy will be deactivated if the average daily account value for the calendar month falls below $50$100
Account balance cap$200,000N.A.
Withdrawal fees$0.50 service fee for Direct Credit (POSB or DBS) withdrawal$0.70 service fee for PayNow withdrawalN.A.
Top Up RequirementsMinimum $1 up to maximum Account ValueNo restrictions
Life insurance coverage for death105% of the account valueUp to 105% of the account value (additional terminal illness coverage)
Capital GuaranteeCapital guaranteed by SDIC under PPFCapital guaranteed by SDIC under PPF

How I would use GIGANTIQ

In the first year, you will earn the same rate as in Singlife. Although there is a little bit more inflexibility to Etiqa, such as having a withdrawal fee for partial withdrawals as well as having a $1 minimum top up value. This means that you can treat your GIGANTIQ account, at least for the first year, as a “1 year fixed deposit”.

Unlike Singlife, I do not recommend treating GIGANTIQ like a flexible “bank account”. GIGANTIQ leans more towards the insurance spectrum. Treat it like a fixed deposit. Something that once you set, you can withdraw after 1 year, once you have reaped the maximum 2% gains.

I shall not bore you with more details and numbers, because Seedly has done up a great article here.

Okay, sign me up for GIGANTIQ! (PolicyPal Promotion)

So, PolicyPal is offering a limited promotion for GIGANTIQ. Through their mobile app (Android/iOS), you can sign up for GIGANTIQ.

Here is a short video walkthrough on how to sign up for GIGANTIQ on the PolicyPal app. For the referral code, you can use my code “JUNIORSNF”.

I get a small kickback. You can use your friends’ referral code, they will also get some kickback to purchase vouchers from PolicyPal.

Currently, this is PolicyPal’s promotion.

Activity% of total premium on PolicyPalNo. of TimesMax Bonus
Refer a friend to purchase GIGANTIQ0.2%
(Eg. If your total base premium for GIGANTIQ purchased through PolicyPal is $100, you will receive 0.2% * 100, $9.2)
20x (Up to 20 friends to earn the rewards)4%
Purchase a policy from PolicyPal1%4x (Up to 4 additional policies to earn the rewards)4%
Total Max Bonus8%

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