Treasury Bills 2024

SBJAN24 GX24010F is 3.07%

Singapore Savings Bonds SBJAN24 GX24010F

The effective interest rate for January 2024 Singapore Savings Bonds (SBJAN24 GX24010f) is 3.07% if you held it for 10 years. The interest rate dropped drastically this month. This month’s effective interest rate is fell by 0.33% as compared to SBDEC23 GX23120Z effective interest rate of 3.40%.

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.

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 3.00%. This is still not too bad given that you are going to paid at least 3.00% for the next 10 years.

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 3.00 3.00
2 3.00 3.00
3 3.00 3.00
4 3.00 3.00
5 3.00 3.00
6 3.00 3.00
7 3.00 3.00
8 3.20 3.02
9 3.27 3.05
10 3.27 3.07

*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

My fellow financial blogger Turtle Investor redeemed his old tranches of Singapore Saving Bonds and applied for newer ones because the interest rate is higher.

SBOCT23 GX23100T is 3.16%

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 SBJAN24 GX24010F with UOB Stash Account

The UOB Stash Account Promotion is still going strong.

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 3.07% p.a. which is 0.07% higher than 3.00% offered by UOB Stash Account.

Again, do your maths before investing into Singapore Savings Bonds or UOB Stash Account.

Compare SBJAN24 GX24010F with CIMB Fixed Deposit Promotion

Looking at the table below, 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 months 3.45 3.50
6 months 3.50 3.55
9 months 3.35 3.40
12 months 3.15 3.20

Last but not least, invest your money wisely!

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