SBMAR24 GX24030V is 2.88%

Singapore Savings Bonds SBMAR24 GX24030V

The effective interest rate for March 2024 Singapore Savings Bonds (SBMAR24 GX24030V) is 2.88% if you held it for 10 years. The interest rate had recovered slightly by 0.07% as compared to last month low of 2.81% (SBFEB24 GX24020T).

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

As compared to other investments with higher bill such as T-Bills, Singapore Savings Bonds is still attractive in some areas. First, the minimum amount to invest is low. The minimum amount which you can purchase the Singapore Savings Bond is low at 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 2.74%. 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. It can also be treated as an emergency funds.

Year from issue dateInterest %Average return per year %*
12.742.74
22.742.74
32.742.74
42.742.74
52.742.74
62.722.74
72.842.75
83.122.79
93.262.84
103.262.88

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

Stocks Café Can Also Track Singapore Savings Bonds

StocksCafe Tracking of SSB

My favourite stock management software, Stocks Café allows me to track my Singapore Savings Bonds purchases.

Stocks Café allows you to create portfolios. You can use portfolio to differentiate your investments. For example, I created three portfolios in Stocks Café, namely Stocks, Singapore Savings Bonds and Treasury Bills. This allow me to categorize how much I allocate for each investment.

Singapore Treasury Bills (T-Bills) versus Singapore Savings Bonds (SBMAR24 GX24030V)

The cut off yield for BS24102S 6-Month T-bill is 3.54% p.a. This is definitely higher than 2.88% p.a. that SBMAR24 GX24030V offered.

Like I shared above, if you afford the minimal amount of S$1000, go for T-bills. If you can only fork out S$500, then investing in Singapore Savings Bonds is still better than not investing at all.

UOB Stash Account Beats SBMAR24 GX24030V 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 SBMAR24 GX24030V

CIMB Fixed Deposit has maintained its interest rates similar to January 2024 which is great news!

TenurePERSONAL 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
3 months3.453.50
6 months3.503.55
9 months3.353.40
12 months3.153.20

Which Investment To Choose?

My advice is still the same as last month.

  • 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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