The effective interest rate for September 2022 Singapore Savings Bonds (SBSEP22 GX22090Z) is 2.8% if you held it for 10 years. The effective interest rate dipped slightly as compared to the previous month. Nevertheless, I still consider the interest rate to be attractive!
The minimum amount which you can purchase the Singapore Savings Bond is S$500. If you decide to hold and sell the current issue (SBSEP22 GX22090Z) after 1 year, the effective interest rate is 2.63%. There is no lock in period and thus you can sell it anytime.
| Year from issue date | Interest % | Average return per year %* |
| 1 | 2.63 | 2.63 |
| 2 | 2.71 | 2.67 |
| 3 | 2.71 | 2.68 |
| 4 | 2.71 | 2.69 |
| 5 | 2.71 | 2.69 |
| 6 | 2.79 | 2.71 |
| 7 | 2.86 | 2.73 |
| 8 | 2.94 | 2.75 |
| 9 | 3.00 | 2.78 |
| 10 | 3.04 | 2.80 |
*At the end of each year, on a compounded basis.
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.
Singapore Savings Bonds versus Dash EasyEarn and Dash PET
The return per annum for Dash EasyEarn is 1.20% while Dash PET is 0.70%.
I believe you can do your maths! Of course Singapore Saving Bonds is the winner here against Dash EasyEarn and Dash PET!
Singapore Savings Bonds versus NTUC Income Gro Capital Ease
The latest tranche of NTUC Income Gro Capital Eco offers a guaranteed return of 1.82% p.a. for 3 years.
If you decided to redeem this month’s issue of Singapore Savings Bonds (SBSEP22 GX22090Z) after 3 years, the return is 2.68% per year.
Singapore Savings Bonds is the clear winner here!
| Year from issue date | Interest % | Average return per year %* |
| 1 | 2.63 | 2.63 |
| 2 | 2.71 | 2.71 |
| 3 | 2.71 | 2.68 |
Singapore Savings Bonds versus Fixed Deposit
Last month, I made a fixed deposit place of 18 months with CIMB at an interest rate of 2.25%.
As shared above, if you decided to redeem this month’s issue of Singapore Savings Bonds (SBSEP22 GX22090Z) after 1 year, the return is 2.63% per year.
If you hold it longer and redeem it after 2 years, the return is 2.71% per year.
| Year from issue date | Interest % | Average return per year %* |
| 1 | 2.63 | 2.63 |
| 2 | 2.71 | 2.71 |
Singapore Savings Bonds is also a clear winner against SGD Fixed Deposits!
Higher Returns But Higher Risk
If you are a risk taker, you can try purchasing Crypto and depositing with Hodlnaut to earn higher interest.
Crypto is definitely not for the faint hearted. If you are looking for safe haven, stick to Singapore Savings Bonds.
Is Singapore Savings Bonds still Useful?
Most of the financial products out there require you to invest using cold hard cash. This is where the Singapore Savings Bonds outshine them. You can purchase the Singapore Savings Bonds using your Supplementary Retirement Scheme (SRS) funds.
The interest rate for Supplementary Retirement Scheme (SRS) fund is only 0.05% per annum. You can top up your SRS account to offset your annual taxes and then use the funds from your SRS account to purchase Singapore Savings Bonds to earn a higher interest rate.
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)