SBOCT21 GX21100W is 1.39%

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SBOCT21 GX21100W is 1.39%

The effective interest rate for October 2021 Singapore Savings Bonds (SBOCT21 GX21100W) is 1.39% if you held it for 10 years. The minimum amount you can purchase is S$500. If you decide to hold and sell the current issue (SBOCT21 GX21100W) after 1 year, the effective interest rate is 0.35%.

Despite the low interest rate, Singapore Savings Bonds complement your other savings and investments as a safe way to save for the long term. It is basically near to zero risks.

Singapore Savings Bonds Alternatives

For higher returns, you can consider Dash EasyEarn or Dash PET.

When Dash EasyEarn was launched, it offered 2.00% p.a. for the first year. Recently, it has announced the reduction of its return from 2.00% p.a. to 1.20% p.a.. This will be effective from 30th July 2021 onwards.

Similarly, Dash PET had reduced its rate of return from 1.70% p.a. to 1.3% p.a. for the first S$10,000.

Both plans still beat Singapore Savings Bonds 1 year return of 0.35% p.a.

Higher Returns Higher Risk

If you are a risk taker, you can try purchasing Crypto and depositing with Hodlnaut to earn higher interest.

Cryto is definitely not for the faint hearted. If you are looking for safe haven, stick to Singapore Savings Bonds.

Is Singapore Savings Bonds still Useful?

Most of the financial products out there require you to invest using cold hard cash. This is where the Singapore Savings Bonds outshine them. You can purchase the Singapore Savings Bonds using your Supplementary Retirement Scheme (SRS) funds.

The interest rate for Supplementary Retirement Scheme (SRS) fund is only 0.05% per annum. You can top up your SRS account to offset your annual taxes and then use the funds from your SRS account to purchase Singapore Savings Bonds to earn a higher interest rate.

Tracking Singapore Savings Bonds via Stocks Café

My favourite website, Stocks Café has allows adding of Singapore Savings Bonds into your portfolio. If you didn’t know, I signed up as a Friend of Stocks Café as my most favourite feature of Stocks Café is the automated tracking of dividends payout.

This is the third year that I continue to use Stocks Café to track my dividends.

Tracking Singapore Savings Bonds via My Savings Bonds Portal

MAS has launched My Savings Bonds Portal where you can track your Singapore Savings Bonds purchases separately from your stock purchases. I have done up a simple guide here. (Read more: Guide to My Savings Bonds Portal)

Financial Goals Progress August 2021

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Financial Goals Progress August 2021

Above is the progress of me reaching my targeted financial goals for August 2021. The total value of my financial assets continue to increase from 59.30% to 59.57%. The growth is 0.27%. The growth comes from dividends collected from my stocks which I shall share more details below.

What does my financial assets comprise of? The total value of my financial assets comprised of the following:

Insurance Savings

I treated my Singlife, Dash EasyEarn and Dash PET accounts as alternative savings accounts as they are potentially safe haven whereby you just deposit money and watch them grow effortlessly.

I have reached the maximum allowed amount of S$20,000 in Dash EasyEarn which is giving me a return of 1.2% per annum.

Dash PET is giving me 1.70% p.a. for the first S$10,000. The crediting rate for any amount above S$10,000 is 1.20%.

I am refraining from topping up my Dash PET account further as I will like to use my surplus savings to invest into other assets.

Singapore Savings Bonds

There is no Wow factor with Singapore Savings Bonds as I collect my monthly “kopi” money.

In August, I have collected the following interest payout from the Singapore Savings Bonds that I have bought every month over the years.

  • February 2020 (GX20020V)
  • August 2018 (GX18080F)
  • February 2019 (GX19020V)
  • August 2019 (GX19080E)

The effective interest rate of this month’s issue of Singapore Savings Bond (SBSEP21) is giving 1.43% per annum. Readers who wanted safe haven or place for emergency funds should consider.

My Stock Portfolio

I use Stocks Café to keep track of the total value worth of my stocks. With the easing of COVID-19 measures, people start to return to work and the Singapore economy embarks its journey of gradual recovery.

Unless there is a U-turn down the road, I foresee that my stock portfolio will continue its growth. This is an exciting month for me as you can see some companies in my stock portfolio are paying dividends in this month.

Portfolio_202106_June

Auto Investing with Syfe

In May 2021, I started the Core Growth portfolio with Syfe. As of today, Syfe has provided me a time weighted return of 4.82%.

Dividends

In August, I have collected dividends from Singtel, Frasers Logistics and Commercial Trust, SPH REIT, OCBC Bank, ST Engineering and ParkwayLife REIT.

Except for Singtel and OCBC Bank, I have large positions in the other mentioned stocks and REITs which provided me with good dividends.

Forex

In August, the Return On Investment (“ROI”) was 26.11%. Even though this is slightly lower than the returns in July, this is still awesome to me!

Financial Goals Progress August 2021

Summary of Financial Goals Progress August 2021

During the COVID-19 pandemic, I read about many businesses closing and people losing their jobs. People accepted low paid positions just to secure a job during the pandemic.

This month, many of my colleagues in my company resigned as they mentioned they have found higher paid positions elsewhere. This proves that many companies are opening up and massively hiring!

Finding higher paid positions is also a way of growing your financial income since job salary to the majority of us is our primary source of income to fund our savings and investments. Having said that, I will still like to observe the job market to stabilize first before making further decisions.

In the meanwhile, I shall continue to focus on hunting good quality dividend stocks which can provide me with passive income till my sweet retirement.