My Sweet Retirement Applies T2023 Temasek Bond For Spouse

I am usually not interested in bonds except for Singapore Savings Bonds. However, a recent bond review by Adam Wong at the Fifth Person caught my attention. (Read more: Temasek retail bond: 5 things to know before you invest in the T2023-S$ bond)

Cutting the long story short, Temasek is offering a 5 year bond which matures in 2023 at a fixed interest rate of 2.7% per year. Interest is paid every 6 months and the principal amount is guaranteed by Temasek. The minimum investment amount is S$1,000 or more, in multiples of S$1,000. If you invest S$10,000, you will get S$270 per year or S$135 every 6 months.

The last date and time for applications under the Public Offer is 23rd October 2018 at 12 noon.

How To Apply

  1. You need a CDP account.
  2. There are three ways to apply for the T2023-S$ Temasek Bond.
    • Apply via ATM (DBS, POSB, OCBC and UOB)
    • Apply via Internet Banking
    • Apply via DBS/POSB mobile banking application.


The bond is not totally risk free. Risks associated with bonds include default, interest rate, liquidity, inflation risks and other risks.

Default Risk

Temasek can fail to repay the principal amount when its bonds are due. Of course, the probability of this is extremely low.

Interest Rate Risk

Interest rates may rise, causing bond prices to fall. If you need to sell your bonds in such situations, you may suffer a loss. We need to be careful of this risk as the US Fed may continue to hike interest rates.

Who Is The Investment Suitable For?

The bond is suitable for you if you:

  • want regular income at a fixed rate rather than capital growth;
  • want priority in payouts over share dividends in an insolvency situation;
  • are prepared to lose the principal investment if the Issuer and the Guarantor fail to repay the
    amount due under the Notes; and
  • are prepared to hold your investment until maturity or to exit the Notes only by sale in the secondary market which may be unprofitable or impossible.

Fixed Deposit Promotions in October 2018

Following my post on CIMB Bank’s latest fixed deposit promotion, I realize many other banks are introducing their fixed deposit promotions as well.

Despite fixed deposits having a locked in period for a specified amount of time (usually 12 or 24 months), fixed deposits offer much lower risks as compared to investment products such as stocks and REITs. For example, REITs have recently suffered a setback when Federal Reserve decided to hike their interest rates in September. My stock portfolio was not spared.

Another comparable investment product which has low risk is the Singapore Savings Bonds. However, you will need to hold it for a longer period of time (10 years) to reap its full interest rate. For example, November 2018 Singapore Savings Bonds offers an effective interest rate of 2.48% if you held it for 10 years. If you have followed my monthly updates, you know that I am a supporter of Singapore Savings Bonds and I have been purchasing Singapore Savings Bonds every month.

If you decided Singapore Savings Bonds does not suit you, below are the fixed deposit promotions I have found so far. Read More

CIMB Bank 9th Birthday Fixed Deposit Promotion

It really has been a very long long time since I wrote about fixed deposits because I could not find any ones that are good and simple to understand. Recently, I found a good deal from CIMB Bank.

As part of their 9th Birthday celebration, CIMB Bank is offering an additional 0.09% interest per annum on all their online promotional SGD Fixed Deposit rates.

You can choose the duration of 3 months, 6 months or 12 months and if you apply online, they offer higher interest rates as shown in the table below.

Interest Rates (% p.a.)
3 Months 6 Months 12 Months
Branch Rate 1.30 1.45 1.55
Online Exclusive Rates 1.49 1.64 1.84

A minimum of S$10,000 per placement is required.

Using S$10,000 as an illustration,

If you place a fixed deposit for 3 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0149 × 0.25)) = 10037.25
A = $10,037.25

If you place a fixed deposit for 6 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0164 × 0.5)) = 10082
A = $10,082.00

If you place a fixed deposit for 12 months, the total accrued amount (principal + interest) that you will receive is

A = 10000(1 + (0.0184 × 1)) = 10184
A = $10,184.00

I believe the above is a good deal if you have extra cash to park aside for a short duration of maximum 12 months.