January 2019 Singapore Savings Bonds is 2.45%

The effective interest rate for January 2019 Singapore Savings Bonds (GX19010T) is 2.45% if you held it for 10 years. As usual, I shall be allocating a portion of my monthly salary into safe haven. Singapore Savings Bonds acts as a form of emergency fund when the need arises.

If you didn’t know, Singapore Savings Bonds pays out interest every 6 months. Thus, if you have subscribed for January 2019 Singapore Savings Bonds, the next payout will be July 2019 and January 2020 respectively. If you own a DBS Multiplier Account, you can also apply the hack to earn a higher monthly interest from your DBS Multiplier Account. I have completed my matrix below and thus I am expecting to earn a higher interest rate from DBS Multiplier Account every month in the year 2020!

Read my previous post here on how to earn higher interest with your DBS Multiplier Account. Read More

Sixty Nine Percent Invested Thirty One Percent Cash

The last time I checked how much have I invested versus how much cash I have on hand was almost 5 months ago which was in June 2018. At that point, I held thirty five percent cash and sixty five percent invested. As of 17 November 2018, I held 31 percent cash and my investment makes up sixty nine percent.

Knowing how much cash I have on hand is important as I know usually this is the period where the festive season is nearing and my expenses will increase due to buying Christmas presents and eating out at restaurants during family and friend gatherings. I needed to know how much extra cash I have to invest and thus to prevent over investing.

Last month, I paid in advance my daughter’s tuition fees. Recently, during the 11.11 sales, I bought myself a Nintendo Switch. This is not a necessity but I think playing it with my children will be fun and at the same time improve family bonding. One week ago, I bought a new pair of spectacles as my current spectacles are more than three years old. My eyesight have worsen. I guess this cannot be avoided as we are surrounded by electronic gadgets daily. All of the above are big expense items.

Here is a summary of the expenses.

Item Bought Amount Need or Want?
Children School Fees S$2,065 Need
New Pair of Spectacles S$645 Need
Nintendo Switch S$407 Want
Total $3,117

Next month of December is where most companies pay out their annual wage supplement or so called the “13th month”. It is also the last month for those who wanted to top up their supplementary retirement account to get tax rebates. I have not been very self discipline in topping up my supplementary retirement account this year. In fact, I have only been contributing to my supplementary retirement account these few months. I shall check how much cash I hold after getting my “13th month” wage before deciding how much further to top up my supplementary retirement account.

CIMB Bank Christmas Fixed Deposit Promotion

The festive season is here again. CIMB Bank beats other banks and launched their Christmas Fixed Deposit promotion ahead of everyone else. CIMB Bank is offering an interest rate of up to 1.90% per annum. This promotion is similar to their 9th Birthday Fixed Deposit Promotion except that interest rate is higher!

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 1.50 1.70 1.90

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 + (0.0150 × 0.25)) = 10037.50
A = $10,037.50

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

A = 10000(1 + (0.0170 × 0.5)) = 10085
A = $10,085.00

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

A = 10000(1 + (0.0190 × 1)) = 10190
A = $10,190.00

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