Reader:
Good day, have been reading your blog for few month. found many useful tip . esp the CPF sa. should have transfer once hdb loan paid off. 😞 

Would like to ask for your view on an endowment plan which is 3year at 2.02%per year. It stated protected under Singapore Deposit Insurance. Thanks for your time.

AK:
2.02% interest per annum for a lock in period of 3 years is unattractive to me. Liquidity is important to me as an investor.

Unlike a fixed deposit where the only thing we give up is the interest if we should break the deposit, premature termination of insurance policies is usually punitive and we might not recover all our money.

For a lock in period of 3 years, the interest rate offered would have to be much higher. Otherwise, I would rather settle for a lower interest rate offered by some banks for fixed deposits (e.g. 1.55% p.a. for a …