February 2020 Singapore Savings Bonds is 1.75%

The effective interest rate for February 2020 Singapore Savings Bonds (GX20020V) is 1.75% if you held it for 10 years. This is a slight decrease as compared to 1.76% for January 2020 issue of the Singapore Savings Bonds. The minimum amount you can purchase for Singapore Savings Bonds is S$500. If you decide to hold and sell it for 1 year, the effective interest rate is 1.54% which is worst than what fixed deposits can offer.

On 1st January 2020, DBS Bank has notified that the dividends from CDP will no longer qualify under the investment category for DBS Multiplier Account. This means that the reason for purchasing Singapore Savings Bonds for the purpose of additional interest for DBS Multiplier Account is no longer valid.

For me, I will continue to purchase Singapore Savings Bonds for the purpose of achieving my goal of purchasing 8K of Singapore Savings Bonds in 2020. Over 10 years, the effective interest rates still beat the interest rate from the traditional savings account. Moreover, the minimum amount for each purchase is S$500 which means you can make multiple small purchases over a period of time instead of a lump sum.

Tracking Singapore Savings Bonds via Stocks Café

My favorite website, Stocks Café has introduced a new feature to 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 favorite 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)

DBS Multiplier Account + Singapore Savings Bond Hack No Longer Valid

Today is the first day of the year 2020 and DBS Bank chose this day to send an email notification about their DBS Multiplier Account changes. There are some changes to DBS Multiplier Account that will take place from 1st February 2020.

With the changes, dividend received from Central Depository Pte Ltd (CDP) will no longer qualify as the investment category but the income category instead. Income category is where salary credit belongs to. This also means that the DBS Multiplier Account + Singapore Savings Bond Hack that I have completed last year is no longer valid.

Below is a summary of the changes.

What a way to kick start 2020…

January 2020 Singapore Savings Bonds is 1.76%

The effective interest rate for January 2020 Singapore Savings Bonds (GX20010T) is 1.76% if you held it for 10 years. This is an improvement as compared to 1.71% for December 2019 issue of the Singapore Savings Bonds. The minimum amount you can purchase for Singapore Savings Bonds is S$500. If you decide to hold and sell it for 1 year, the effective interest rate is 1.52% which is worst than what fixed deposits can offer.

If you have 10K or more and can afford to lock down the money for 1 year or more, you can consider fixed deposits as compared to Singapore Savings Bonds for that higher interest rate.

If you have monies sitting in your Supplementary Retirement Scheme account, why not consider placing SRS monies with Singapore Savings Bonds for a higher interest? (Read more: Purchase Singapore Savings Bonds with SRS in 2019)

DBS Multiplier Account + Singapore Savings Bonds

If you hold a DBS Multiplier Account, you can perhaps try the hack I previously wrote about to achieve a higher interest rate payout. (Read more: Earn More Interest With DBS Multiplier Account + Singapore Savings Bonds).

Tracking Singapore Savings Bonds via Stocks Café

My favorite website, Stocks Café has introduced a new feature to 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 favorite feature of Stocks Café is the automated tracking of dividends payout.

I have renewed my subscription with Stocks Café and this is the second 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)