Invest your CPF ordinary account in BIGe

Dear Mr Tan,

I read your blog everyday without fail. It is so informative and covered a large variety of topics which are very relevant to ordinary retirees like us.

I would like to seek your advice on a product being marketed by Aviva Pte Ltd.

3.5% pa guaranteed for 3 months on your CPF savings. The BIG e is a single endowment plan that offers :

(a) Interest that's always higher than CPF's existing rate of 2.5% pa.
(b) 100% capital sum guaranteed.
(c) No lock-in period.
(d) No sales charges and withdrawal fees.

I have some CPF left and would like to invest in this endowment plan. Would appreciate your advice and comments.

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REPLY:

This is a good plan for a CPF member. If I have money in the CPF ordinary account earning 2.5%, I would probably have opted for the BIGe myself.

To my knowledge, there is nothing adverse about it.