SBFEB24 GX24020T is 2.81%

Singapore Savings Bonds SBFEB24 GX24020T

The effective interest rate for February 2024 Singapore Savings Bonds (SBFEB24 GX24020T) is 2.81% if you held it for 10 years. The interest rate dipped as much as 0.26% as compared to SBJAN24 GX24010F effective interest rate of 3.07%.

Singapore Savings Bonds are issued and fully backed by the Singapore Government. The bonds take their interest rates from the average yields of Singapore government bonds from the month before. If you would like to know how the effective interest rate for this month’s issue of Singapore Savings Bonds is computed, you can refer to my previous post on Predict Singapore Savings Bonds Interest Rate.

Three Reasons to Buy Singapore Savings Bonds

Even though the interest rates have fallen, Singapore Savings Bonds still has its benefits. First, the minimum amount to invest is low. The minimum amount which you can purchase the Singapore Savings Bond is S$500. This is unlike buying Singapore Treasury Bills (T-Bills) where the minimum is at least S$1,000.

Second, there is no lock in period and thus you can sell it anytime. If you decide to hold and sell this issue of Singapore Savings Bond after 1 year, the effective interest rate is 2.71%. Thus, one of the benefits of buying Singapore Savings Bonds is the liquidity.

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 dateInterest %Average return per year %*

*At the end of each year, on a compounded basis.

Tracking Singapore Savings Bonds via Stocks Café

I want to repeat this. 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.

Summing up the dividends I collect in 2023 is almost effortless as Stocks Café does it for me. In 2023, I collected a total dividends of $16,606.89 from Stocks and Singapore Savings Bonds.

Compare Singapore Savings Bonds Interest Rates

If you held holder tranches of the Singapore Savings Bonds, do remember to check if the effective interest rate is lower than the current issue. Read more here on how to Compare Singapore Savings Bonds Interest Rates.

SBOCT23 GX23100T is 3.16%

Remember, you can redeem previously bought issues of Singapore Savings Bonds and buy the current issue if this month’s issue of Singapore Savings Bonds offers you higher effective interest over the next 10 years.

UOB Stash Account Beats SBFEB24 GX24020T If You Have 100K

In my recent post, I share that with a balance of S$100,000, the interest rates for each tier under the UOB Stash Account is:

  • S$0 – S$10,000 – 0.05% p.a.
  • S$10,001 – S$40,000 – 2% p.a.
  • S$40,001 – S$70,000 – 3% p.a.
  • S$70,001 – S$100,000 – 5% p.a.

Based on the calculator provided by UOB, the estimated interest you will earn is S$3,005.67.

This works out to be around 3% p.a. on the full balance of $100K which easily beats the effective interest rate of SBFEB24 GX24020T of 2.81% p.a.

CIMB Fixed Deposit Promotion Beats SBFEB24 GX24020T

Again, this month’s issue of Singapore Saving Bonds is a loser against CIMB Fixed Deposit.

S$10,000 AND ABOVE
S$10,000 AND ABOVE
3 months3.453.50
6 months3.503.55
9 months3.353.40
12 months3.153.20

Wait. What About Singapore Treasury Bills (T-Bills)?

Treasury bills (T-bills) are short-term Singapore Government Securities (SGS). They are issued at a discount to their face value. Investors receive the full face value at maturity.

Singapore Treasury Bills (T-Bills) 2023 Cut Off Yield

The Singapore Government issues 6-month and 1-year T-bills.

What is the latest Treasury Bills (T-Bills) cut off yield? To be honest, I am not sure but based on past trend, it is definitely higher than what Singapore Savings Bonds offer.

If you have read until the end of this post, my advice

  • If you only have S$500, buy Singapore Savings Bonds.
  • If you only have S$1000, buy Treasury Bills.
  • If you have S$10000, place it with CIMB Fixed Deposit at 3.50% p.a. for 6 months.
  • If you have S$100,000, place it either with CIMB Fixed Deposit at 3.50% for 6 months or stash it with UOB Stash Account for around 3% p.a.

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