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Retirement Scheme (SRS) funds to purchase Capital Plus for a higher guaranteed yield since SRS can only be withdrawn after your retirement age.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.

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