The effective interest rate for April 2017 Singapore Savings Bonds is 2.27%. Seems that interest rate is declining but it still beats the traditional fixed deposits. Banks are also slashing its interest rates. A good example will be OCBC 360. (Read more here: OCBC 360 Account Makes Earning Additional Interest More and So Complicated)
While browsing the Singapore Savings Bond website, I came across the FAQ they have put up on their website.
Here are some things I do not know of and may be interesting to you as well
Does the Government need the money? What will the Government use the money for?
The Government is not issuing Savings Bonds to finance its expenditure. The money raised from issuing Savings Bonds cannot be spent and will be invested.
Are Savings Bonds going to be a permanent feature?
The Government is committed to maintaining the Savings Bond programme for at least 5 years.
Is there any scenario under which I am allowed to transfer my Saving Bonds?
Savings Bonds cannot be transferred except in specific situations such as the death of the bondholder. In such cases, the bonds can be transferred to the rightful beneficiaries according to the deceased person’s will or under the intestacy law.
The above FAQ is extracted from Singapore Savings Bond website. You can read more here: http://www.sgs.gov.sg/savingsbonds/Resources/FAQs.aspx
While I am hunting for some good dividend stocks and reits to invest, my war chest is sitting in my bank earning a petite interest rate of less than 0.8%. I have some thoughts. Should I put my money into Singapore Savings Bond for the time being?