November 2017 Singapore Savings Bonds is 2.07%

There was a significant drop in November’s effective interest rate as compared to October’s effective interest rate for Singapore Savings Bonds. If you held the bond for ten years, October’s effective interest rate was 2.13% while November’s effective interest rate is 2.07%.

Recently, I have bought more of Singapore Savings Bonds. As such, Singapore Savings Bonds currently makes up 14% of my stock portfolio. Different people will have different reasons for buying Singapore Savings Bonds. As the current stock market is expensive and most REITs are yielding 6% or less, I find it non attractive to buy into the stock market right now. As such, I have treated the Singapore Savings Bonds as a savings account and also sort of an emergency fund if in event I do get retrenched.

Here is my previous post of Singapore Savings Bonds where I compare it with our savings account or fixed deposits.

Singapore Savings Bond versus Savings Account versus Fixed Deposits

Singapore Savings Bond versus Savings Account versus Fixed Deposits

The latest Singapore Savings Bond (“SBSep17“) is offering 2.12% effective interest rate over a ten years period. Many people have been lamenting about the low interest rates and I also think the Singapore Savings Bond interest rate is not attractive. I decided to do some research by comparing it with similar low risk products out such as a popular high yield Savings account and Fixed Deposit account. I am excluding REITs and Stocks in the comparison as the intention is to park the money somewhere as a form of war chest or savings.

I picked CIMB StarSaver Account, CIMB 12 month fixed deposit and MayBank 12 month fixed deposit. Read More

May 2017 Singapore Savings Bonds is 2.32%

If you have followed my blog post on Singapore Savings Bonds, you will know that I have bought Singapore Savings Bonds in October 2015 where the effective interest rate is 2.63%. Time flies and I have received my third payout in the month of April 2017.

The effective interest rate for May 2017 (GX17050F) Singapore Savings Bonds is 2.32%. Seems there is slight recovery in interest rates. Although the interest rate is not attractive, the money can serve as a contingency fund. My ideal contingency fund is around six times your current salary. In case we get retrenched, the period of 6 months is sufficient for us to find a new job. Read More