SBSEP20 GX20090H is 0.88%

Singapore Savings Bonds SBSEP20 GX20090H

The effective interest rate for September 2020 Singapore Savings Bonds (SBSEP20 GX20090H) is 0.88% if you held it for 10 years. The COVID-19 pandemic that started in March 2020 had caused the interest rates to fall dramatically across fixed deposits and savings accounts.

The minimum amount you can purchase is S$500. If you decide to hold and sell the current issue (SBSEP20 GX20090H) after 1 year, the effective interest rate is 0.24%.

Singapore Savings Bonds Alternatives

I wouldn’t put my money into the Singapore Savings Bonds as the interest rate is simply too low. Fortunately, there are alternative financial instruments out there that offer higher interest rates. They are short term endowment plans such as NTUC Income Gro Capital Ease, Tiq 3 Year Endowment Plan and China Taiping i-Save. You can read more about them in Best Endowment Plans In July 2020.

If the lock in period for Endowment Plans is a concern for you, you can check out Dash EasyEarn or the Singlife Account. Last month, I have signed up for Dash EasyEarn that offers you an attractive interest rate of 2% p.a. for the first year and 1.5% p.a. for subsequent years. Similar to Singlife Account, there is no lock in period, no monthly fees and you can withdraw your money anytime. Signing up takes less than 10 minutes!

Tracking Singapore Savings Bonds via Stocks Café

My favorite 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 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)

Grow Money with Dash EasyEarn

Dash EasyEarn

Grow money with Dash EasyEarn! Dash EasyEarn is an insurance savings plan by Etiqa Insurance that is only eligible to Dash users. If you are not familiar with Dash, Dash is a mobile wallet provided by Singtel. Similar to the Singife account, Dash EasyEarn have no monthly fees, no regular top ups required and no lock in period.

Insurance Benefits

Since this is an insurance plan, you enjoy insurance coverage in the event of Death with a death benefit of 105% of your account value.

Wondering how much interest you can earn with Dash EasyEarn?

Dash EasyEarn delivers 2.0% p.a. interest for the first year (Guaranteed 1.5% p.a. + 0.5% p.a. bonus for first policy year, available on a first come, first served basis). The starting amount is S$2,000 and subsequent top-ups may be made in multiples of S$500. The maximum top-up amount is capped at S$20,000.

Let us do an illustration. Based on the minimal deposit of S$2,000, you will receive an interest of S$40 for the first year. If you make the maximum deposit of S$20,000, you will receive an interest of S$400.

Dash EasyEarn versus Singlife Account

Dash EasyEarn is very similar to Singlife account that I have signed up for previously.

Here is a comparison of Dash EasyEarn and Singlife account.

Dash EasyEarnSinglife Account
Minimal amountS$2,000S$500
Interest Rate (p.a.)2.0% for the first year
1.5% thereafter
2.5% for first S$10,000
1.0% for next S$90,000
Computation of returnsInterests are computed dailyInterests are computed daily
Minimum Withdrawal AmountWithdrawal amounts must be at least S$100, and in multiples of S$100 per withdrawalNo minimum
Withdrawal Mode(1) either your Singtel Dash account up to your Dash wallet account limit (no charge); or
(2) directly to your bank account via PayNow (S$0.70 per transaction, deducted from Dash EasyEarn plan)
Direct to bank account
BenefitsDeath benefitRetrenchment benefit
Death benefit

How to Sign Up?

Step 1: Download the Singtel Dash App from the app store.

Step 2: Launch Dash and select Grow Money.

Dash EasyEarn Grow Money

Step 3: Have your NRIC ready and follow through the rest of the step by step instructions within the app.

For those that wants to stash aside 20% of your monthly salary for retrenchment preparation or retirement savings, this is a good financial instrument that earns you 2% interest for the first year and 1.5% thereafter.

Disclaimer: This is not a sponsored post.