It has been 3 months since Singapore Savings Bonds have been launched. Personally, I feel that the effective return per year has not been impressive with interest rate as low as 2.44% in December 2015 Singapore Savings Bonds. The highest ever achieved was 2.78% in November 2015. I missed the boat!
I have subscribed to October 2015 Singapore Savings Bonds which currently makes up 6% of my stock portfolio. I am happy with 2.63%, considering that Singapore Savings Bonds is a risk-free investment as compared with alternatives such as fixed deposits, equities, structured notes or funds that offer higher potential returns but come with higher risk.
While building on my war chest, I shall be keeping an eye on higher interest rates. When comfortable with the interest rate, I shall buy more Singapore Savings Bonds. The maximum one can buy is $50,000.
The effective interest rate for January 2016 is 2.58%, slightly better and comparable to October 2015 rate.
| Month | Oct 15 | Nov 15 | Dec 15 | Jan 16 |
| Effective return per year (%) | 2.63 | 2.78 | 2.44 | 2.58 |
Hi
Can you advise how can I buy the Singapore Bonds ? How long is the duration ? The Fixed deposit rates from bank this year is miserable.
Please refer here on how to buy Singapore Savings Bonds. (http://www.sgs.gov.sg/savingsbonds/Your-SSB/How-to-buy.aspx)
Singapore Savings Bonds are held for 10 years and there is no lock in period, meaning you can sell anytime.