The effective interest rate for December 2020 Singapore Savings Bonds (SBDEC20 GX20120T) is 0.87% if you held it for 10 years. The minimum amount you can purchase is S$500. If you decide to hold and sell the current issue (SBDEC20 GX20120T) 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 China Taiping i-Save Plan 10th Tranche whereby the latest limited tranche offers you a return of 1.96% for 3 years.
If locking in your money for 3 years is an issue to you, you can check out GIGANTIC, Dash EasyEarn or Singlife whereby there is no lock in period.
All the following 3 insurance plans look similar with only differences in their minimum investment amount. I personally have signed up a Singlife Account and Dash EasyEarn.
|GIGANTIC||Dash EasyEarn||Singlife Account|
|Lock In Period||No||No||No|
|Minimum investment amount||S$50||S$2,000||S$500|
|Return rate per annum||2.0% per annum on your first S$10,000 for the first year|
1.0% for amounts above S$10,000 for the first year
|2.0% p.a. return 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)||2.0% for first S$10,000|
1.0% for next S$90,000
* From 1 November 2020, customers who spend S$500 within their specified card spend period on the Singlife Visa Debit Card will qualify for a bonus 0.5% p.a. return on top of the new base return of 2% p.a. for the duration of one policy month.
Tracking Singapore Savings Bonds via Stocks Café
My favourite 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 favourite 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)