current exploring to buy education saving plan for my kids. any suggestion which company provide the best in terms of dividen/interest?

Not an agent but have you really decided to get savings plan? Most of them are just on par with FD rates (before covid era)

Heard from my spouse's friend working at AXA. their average rate is from 4-6%. 8% when good.

But from what she said, saving plan and edu plan is the same.

FD is only 4%?

Yes saving/edu plan is the same. Different marketing name only. And yes my expectation of FD is around 4% pre covid

Please be careful of the %payout shown. Is it % of your total premium paid, or % of sum insured? Typically it’s shown as %of sum insured and you need to covert it back to %premium to be able to compare against FD.

Better if you know how to calculate IRR and compare against FD

basically in the market we have 3 ways to plan for kids education.

1. Unit trust: Buy fund and diversified into foreign funds have the
about 6-7% pa for the next 20 years. no tax exempted.

2. Insurance Company
About 4-5% pa. with guaranteed feature when payer diagnosed with critical illness /TPD/ Death. Saving amount continue till kids reach 20yo.

3. SSPN
Tax exempted about 4% pa.

Before starting a plan do calculate the Present value involve of inflation rate and the future value of the education fees.

This post has been edited by Ewa Wa: Jul 12 2021, 05:09 PM

Due to the nature of my job, I have access to all these saving plans available in the market.

An education saving plan from an Insurance company (which most people get) will form the smallest portion of my future child's education fund planning.

Best,
Jiansheng

Depending on your risk appetite, there are FDs at 1.5% to investment vehicles that gives 1.5% to 12% return per annum.

Factor varies also in terms of
1. How many years till your child needs the fund for education purposes
2. What is the budget you're willing to put in

For the saving plan, they have many way to start, such as FD, unit trust, insurance education plan, SSPN and so on.


FD rate 2.5% more. after 10 years, nobody the actual rate.

Insurance - education plan ==> Most the plan is 20 years. When you kid after Form is 17. Foundation 1 year. 19 years old, they need to enter Uni. So, the education plan not ready to use yet. Again, most of the investment link plan on insurance company min need 15 years only can get back your NETT, as my insurance agent tell me.

Unit trust ==> You can draw out anytime, no tied up. long term with 10 years , 7 % per annual or more. some will reach 10% per annual over.

SSPN ==> 3% to 4% per annual

Currently just starting with SSPN (moderate %) and tax relief.

1. How much are you willing to commit per month

2. What is your target return? High returns come with high risk

nowadays SSPN only gives out 3% (+ additional tax rebate), you need more than that to generate a nice return

UT will be the better choice if you are financial illiterate

forgo the savings plan, unless you are seeking for additional insurance for your child

Hi, sorry to bring back the dead thread

Would like to get more info from sifu here regards to education saving plan offer by let's say AIA.. it's good?

Thanks in advance

Why not SSPN?