May 2020 Singapore Savings Bonds GX20050A is 1.39%

The effective interest rate for May 2020 Singapore Savings Bonds (GX20050A) is 1.39% if you held it for 10 years. Due to the COVID-19 situation, this is the lowest interest rate that was offered by Singapore Savings Bonds since inception. The minimum amount you can purchase for Singapore Savings Bonds is S$500. If you decide to hold and sell it for 1 year, the effective interest rate is 0.96% which is worst than what fixed deposits can offer. But of course most fixed deposit requires a minimum sum of at least 10K. If you are unable to fork out 10K at the moment, Singapore Savings Bonds is still a good place to dump your money to earn interests.

Last month, NTUC Income has released their single premium savings plan (“NTUC Capital Plus“) with a guaranteed return of 2.13% per annum over 3 years. There is a minimum sum requirement of 5K. I have purchased it using my Supplementary Retirement Scheme fund.

On 1st January 2020, DBS Bank has notified that the dividends from CDP will no longer qualify under the investment category for DBS Multiplier Account. This means that the reason for purchasing Singapore Savings Bonds for the purpose of additional interest for DBS Multiplier Account is no longer valid.

Tracking Singapore Savings Bonds via Stocks Café

My favorite website, Stocks Café has introduced a new feature to allow 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 favorite 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)

NTUC Capital Plus Versus Singapore Savings Bonds

NTUC Capital Plus is a single premium savings plan that gives you a lump sum payout with guaranteed return of 2.13% per annum over 3 years. Instead of the minimum sum of S$20,000 that was offered in the previous tranche, the minimum amount for the current NTUC Capital Plus is only S$5,000 which you can pay using cash or using your Supplementary Retirement Scheme (SRS) fund.

I personally think it is a good choice to use your Supplementary Retirement Scheme (SRS) funds to purchase Capital Plus for a higher guaranteed yield since SRS can only be withdrawn after your retirement age.

Using the calculator that is offered at NTUC income’s website, I opt for the minimal investment amount of S$5,000.

NTUC Capital Plus Versus Singapore Savings Bonds

How does this fare against the Singapore Savings Bonds? The current issue of Singapore Savings Bonds (SBAPR20 GX20040X) offers an average interest rate of 1.63% over 10 years.

Even NTUC Capital Plus is a clear winner here with an interest payout of S$326.35 at the 3rd year, let us check how much interest will you receive if you redeem the Singapore Savings Bonds early at the 3rd year.

Based on the table below, it seems that the interest rate for April 2020 issue of Singapore Savings Bond is consistent at 1.46% for the first 3 years. You receive S$73 per year.

The total interest you will receive is S$73 per year x 3 years = S$219 if you held Singapore Savings Bonds (SBAPR20 GX20040X) and redeem it at the 3rd year.

The Best Fixed Deposits In The Current COVID-19 Situation (March 2020)

With the current economy getting worst due to the impact of the COVID-19 outbreak and oil price war between Saudi Arabia and Russia, local banks have started to slash their fixed deposit interest rates. This is the first time I saw banks revise their fixed deposit rates. If you have read my earlier post on The Best Fixed Deposits of March 2020, the fixed deposit rates have been significantly lowered.

The world wide stock market has plunged terribly over this week and Singapore stock market was not spared as well with the Straits Times Index down 4.7% yesterday to 2,311.

If you are looking for safe haven in the current situation, MayBank offers the best fixed deposit rate of 1.45% per annum for 12 months.

Below are the list of Fixed Deposit promotions that I have collated for the month of March 2020:

MayBank Singapore Dollar Time Deposit

Interest Rate: 1.45%, Minimum Placement: S$20,000, Promotion Valid Until: Not stated

The total interest that you will receive if you place S$20,000 for 12 months is S$290.00. However, there are some catch should you choose to place your fixed deposit with MayBank

  • Every S$1,000 deposited into Maybank Current or Savings accounts (minimum S$2,000)
  • You can deposit S$10,000 into Maybank Singapore Dollar Time Deposit accounts (minimum S$20,000)
  • Receive 1.45% p.a. on 12-month Singapore Dollar Time Deposit

CIMB Fast Fixed Deposit Promotion

Interest rate: 1.10%, Minimum Placement: S$10,000, Promotion Valid Until: 31st March 2020

The total interest that you will receive if you place S$10,000 for 12 months with CIMB at an interest rate of 1.10% per annum is S$110.00.

Hong Leong Finance Special Fixed Deposit Promotion

Interest Rate: 1.40%, Minimum Placement: S$10,000, Promotion Valid Until: Not stated

The total interest that you will receive if you place S$10,000 for 10 months with Hong Leong Finance at an interest rate of 1.40% per annum is S$116.66.

Standard Chartered Bank (Singapore)

Interest Rate: 0.90%, Minimum Placement: S$25,000, Promotion Valid Until: 23rd March 2020

The interest that you will get is S$168.75 based on an interest rate of 0.90% p.a. for a placement of S$25,000 for 9 months.

If you are a priority customer, the interest that you will get is S$187.50 based on an interest rate of 1.00% p.a. for a placement of S$25,000 for 9 months.

UOB Time Deposit

Interest Rate: 1.20%, Minimum Placement: S$20,000, Promotion Valid Until: Not stated

The total interest that you will receive if you place S$20,000 for 10 months with UOB at an interest rate of 1.20% per annum is S$200.

OCBC Time Deposit

Interest Rate: 1.05%, Minimum Placement: S$20,000, Promotion Valid Until: Not stated

The total interest that you will receive if you place S$20,000 for 12 months with OCBC at an interest rate of 1.05% per annum is S$210.