How do you compare Singapore Savings Bonds interest rates? One of the benefit of Singapore Savings Bonds is that you can redeem past Singapore Savings Bonds that you have bought anytime without having to wait until the 10 years maturity.
If you have been a follower of Singapore Savings Bonds, you will know that the latest issue SBDEC22 GX22120S is at all time high at 3.47% if you held it for 10 years. The average interest per year for 10 years is also more than 3.26%. Attractive right?
The next question you will ask is which Singapore Savings Bonds should you redeem in your portfolio so that you can use the redeemed money to purchase the next issue of Singapore Savings Bonds for the higher interest every year?
The good news is Monetary Authority of Singapore (MAS) has made it simple to compare Singapore Savings Bonds in from their Singapore Savings Bonds portal.
I have compiled a step by step guide on how I have done it.
Step 1: Navigate to Singapore Savings Bonds portal. Click on the login button which will redirect you to Singpass for authentication.
Step 2: Using the Singpass application on your mobile phone, scan the QR code to login. Alternatively, you can use the password to login.
Step 3: Once you have successfully login to the Singapore Savings Bond Portal, you will be directed to the Investment Summary page which shows the total investments you have made on Singapore Savings Bonds.
From the menu, select My Portfolio.
Step 4: The page will show all the issuance of Singapore Savings Bonds you have previously bought. I will look at Average 10Y Interest Rate to identify which bond has a lower interest rate than the latest issue of Singapore Savings Bonds. Tick the checkbox beside the Name.
Step 5: Scroll down to the bottom of the page where you will find the Compare button. Click on the Compare button.
Step 6: You will be presented with a 10 year bar chart showing the yearly interest % payout for the Singapore Savings Bonds you have selected from your portfolio and the latest issue of Singapore Savings Bonds.
A glance clearly shows that the payout for SBDEC22 is higher at 3.26% as compared to SBSEP17 at 2.23%.
As such, I will redeem SBSEP17. You should take note that the redemption money will only be paid in the next month and thus you probably will need to find spare cash elsewhere should you want to purchase the current issue of Singapore Savings Bonds.
Alternatively, you can wait for the next issuance SBJAN23 because the interest rate should not drastically be much difference. There is a way to predict the interest rate of the next issuance of Singapore Savings Bonds which I shall share in my upcoming post!