The effective interest rate for August 2019 Singapore Savings Bonds (GX19080E) is 2.01% if you held it for 10 years. As written previously in my monthly post on Singapore Savings Bonds, the interest rate is the lowest in 12 months. But what if you only want to hold it for 1 year?
As shown in the table below, the interest rate is only 1.68% if you buy August 2019 Bond and redeem it after 1 year. This is lower than the interest rate of 12 months fixed deposits offered by banks which makes this month issue of the Singapore Savings Bonds unattractive.
If you have spare cash to lock down for 1 year, why not take a look at some of the fixed deposit promotions currently offered by the banks? Below are the 12 months fixed deposit offered by banks which beats August 2019 issue of the Singapore Savings Bonds:
CIMB Fast Fixed Deposit Promotion
Interest rate: 1.85%, Minimum Placement: S$10,000, Promotion Valid Until: 31st July 2019
United Overseas Bank (UOB)
Interest Rate: 1.75%, Minimum Placement: S$15,000, Promotion Valid Until: 31st August 2019
Standard Chartered Bank (Singapore)
Interest Rate: 1.80%, Minimum Placement: S$25,000, Promotion Valid Until: 31st July 2019
Hong Leong Finance
Interest Rate: 1.80%, Minimum Placement: S$20,000, Promotion Valid Until: Not stated