The effective interest rate for December 2023 Singapore Savings Bonds (SBDEC23 GX23120Z) is 3.40% if you held it for 10 years. As you can see, the interest rate is gradually climbing back up. This month’s effective interest rate is slightly higher by 0.08% as compared to SBNOV23 GX23110V effective interest rate of 3.32%. The effective interest rate of Singapore Savings Bonds is slowly creeping up since July.
If you have yet to purchase any Singapore Savings Bonds, there are tonnes of benefits. First, the minimum amount to invest is low. The minimum amount which you can purchase the Singapore Savings Bond is S$500.
Second, there is no lock in period and thus you can sell it anytime. If you decide to hold and sell the current issue of Singapore Savings Bond after 1 year, the effective interest rate is 3.30%. In fact, I redeemed all my Singapore Savings Bonds last month. With the money, I am going to re-purchase this month’s issue of Singapore Savings Bonds as the interest rate is higher.
Third, Singapore Savings Bonds is a good investment to complement your other savings and investments due to the fact that it is near to zero risks.
| Year from issue date | Interest % | Average return per year %* |
| 1 | 3.30 | 3.30 |
| 2 | 3.30 | 3.30 |
| 3 | 3.30 | 3.30 |
| 4 | 3.30 | 3.30 |
| 5 | 3.30 | 3.30 |
| 6 | 3.30 | 3.30 |
| 7 | 3.36 | 3.31 |
| 8 | 3.58 | 3.34 |
| 9 | 3.68 | 3.37 |
| 10 | 3.68 | 3.40 |
*At the end of each year, on a compounded basis.
Tracking Singapore Savings Bonds via Stocks Café
My favourite website, Stocks Café allow 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.
Stocks Café has been around since 2015. I have been using it to track my dividends since 2018.
Compare Singapore Savings Bonds Interest Rates
If you have bought previous issues of Singapore Savings Bonds, you can compare them with this month’s issue. Read more here Compare Singapore Savings Bonds Interest Rates.
Compare SBDEC23 GX23120Z with UOB Stash Account
The UOB Stash Account Promotion is still ongoing.
Here is a recap of how the UOB Stash Account’s bonus interest will add up.
| Monthly Average Balance | Base interest (p.a.) | Bonus interest (p.a.) | Total interest (p.a.) |
| First S$10,000 | 0.05% | 0.00% | 0.05% |
| Next S$30,000 | 0.05% | 1.95% | 2.00% |
| Next S$30,000 | 0.05% | 2.95% | 3.00% |
| Next S$30,000 | 0.05% | 4.95% | 5.00% |
| Above S$100,000 | 0.05% | 0.00% | 0.05% |
Unless you have more than $100K to invest, I suggest that you go for the Singapore Savings Bond because the current issue gives you 3.40% p.a. which is 0.40% higher than 3.00% offered by UOB Stash Account.
Again, do your maths before investing into Singapore Savings Bonds or UOB Stash Account.
Compare SBDEC23 GX23120Z with CIMB Fixed Deposit Promotion
This is not an apple to apple comparison. If we compare SBDEC23 1st year interest rate of 3.30% p.a. with CIMB’s 12 month fixed deposit, SBDEC23 is the clear winner (3.30% versus 3.15%).
But if you compare with CIMB’s 6 month or 9 month deposit, CIMB Fixed Deposit is the clear winner at 3.40% p.a. and 3.35% p.a.
| Tenure | PERSONAL BANKING ONLINE PROMO INTEREST RATE (%P.A.) S$10,000 AND ABOVE | PREFERRED BANKING ONLINE PROMO INTEREST RATE (%P.A.) S$10,000 AND ABOVE |
| 6 months | 3.40 | 3.45 |
| 9 months | 3.35 | 3.40 |
| 12 months | 3.15 | 3.20 |
Last but not least, invest your money wisely!