Martin Lee @ Sg
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AIA Wealth Accumulator (A$)

AIA yesterday launched their new A$ Wealth Accumulator product.

AIA A$ Wealth Accumulator is a 4.5-year, non-participating single premium endowment plan. The guaranteed yields are as follows:

Single Premium Amount (A$)

$10,000 – $29,000 : 4.50% p.a.
$30,000 – $74,000 : 4.60% p.a.
$75,000 and above : 4.70% p.a.

As an example, a single premium of A$88k will give a guaranteed amount of A$108,204.80 on maturity.

aia-wealth-accumulator-a-dollarTake note that this product is based in Australian dollars (A$) and the maturity amount will also be paid in A$. Thus, it might not be suitable for those who are averse to foreign currency exchange rate risk or who are unable to understand the implications of currency risk.

On the other hand, if you already plan to hold on to A$ long term or intend to use A$ for future needs (eg education funding or retirement), then the currency risk would be less of an issue.

This product is available for a limited period only.

As a comparison, current foreign currency fixed deposit rates for A$ is about 3-4% (depending on amount) for a 12-month duration.

So the AIA (A$) Wealth Accumulator gives a slightly higher yield but a longer lock in period. If there is an early surrender of the plan, then there will also be a slight loss in capital.

Surrender value based on A$1000 invested
End of Policy Year, Cash Value (A$)

1, 888.30
2, 982.80
3, 1,084.10
4, 1,162.70
4.5 ,1,219.10

Leave a Comment:

Intheknow says 13 years ago

you got to be kidding. >1.7% p.a.?

if you can get 1%p.a. for SGD fixed deposit now, you should grab it.

one of the better ones i know is CIMB:

0.9% p.a. for 12 month
1.4% p.a. for 24 months

just remember that sg government guarantee on deposits ends 2010.

James Tan says 13 years ago

Hi Lion,

Any idea which Bank/Finance Co. gives the highest interest rate for S$50K? >1.7% p.a. ?

James Tan says 13 years ago

Hi Lion,

Lloyds TSB is offering 5.5% for 6 months for min A$50K.


    lioninvestor says 13 years ago

    Thanks for highlighting. Yes, I just saw it in the newspapers today too.

bluewind says 13 years ago


From which place, you come to know HL Bank is offering 4.65 p.a. for AUD $21,000 for only one year? Thanks

    James Tan says 13 years ago

    I have A$20K and called several local banks for a quote and HL Bank gave me the highest other then the CIMB Bank (4.5% p.a.) and so opened it with HL Bank today.

Jasmin says 13 years ago

People said the only direction for the current interest rate, in particular for Sing dollars, is north. But this say has been around for years and have we seen any significant raise?
Just look at the yield from Sing treasury bills.

James Tan says 13 years ago

Hi Lion,

Are you aware that HL Bank is offering 4.65 p.a. for AUD $21,000 for only one year? So, the 4.3 p.a. from AIA for 5-yr lock-in period is not that attractive after all, especially when interest rates will be rising in the months to come. Do you not agree ?


    lioninvestor says 13 years ago

    Hi James,

    I haven’t really done a full comparison of the A$ interest rates.

    I agree that if the interest rate were to raise over the next 5 years, then locking in a 5 year rate now is not attractive. But it could also go up over the next 1-2 years, then come down again over the next couple of years. It will depend on how the Australia economy does.

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