Dear readers, in the past when interest rates are not as high as current, we often heard the phrase equivalent to rebalancing one’s investment.
Rebalancing one’s investment is simply balancing one’s investment across the different investment classes: putting more of one’s eggs (aka capital) into investment classes which are relatively cheaper from those classes that have become relatively more expensive.
In today’s high interest rates environment, we see many rebalancing their saving accounts, which is simply moving one’s savings from one lower interest rate account into another account. Such accounts include fixed deposit accounts and also include Singapore Savings Bonds.
This is so as previous tranches of Singapore Savings Bonds do not pay as high an interest as current tranches. And that is why it makes sense for investors to redeem those previous tranches of Savings Bonds and free up the liquidated capital for new Savings Bonds.
Do note that when one redeems one tranche of Singapore Savings Bonds, the freed up capital do not immediately get credited back into your bank account linked with the CDP. The crediting back of the monies will be effected on the 2nd business day of the following month.
If you have the intention to redeem old saving bonds of lower interest rates to apply for higher ones and find it troublesome to find out just which savings bonds should be redeemed or do not really know how to proceed, there is one portal which you can check it out
This portal is none other than the SSB portal.
At this portal, you can view all the Singapore Savings Bonds which you have held, the average annual yields of each bond and the upcoming payouts. All these are great details to facilitate your decision in rebalancing your Savings Bonds portfolio.
Happy rebalancing your Singapore Savings Bonds towards higher interest rates!
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