Dear readers, for long-term savers, the August 2023 Singapore Savings Bonds is good news as its average 10-year annual interest rate is 2.99% per annum.
The 2.99% per annum average 10-year annual interest rate is close to 3% per annum and this is good news, for year-to-date, the average 10-year annual interest rate of Singapore Savings Bonds has only crossed above the 3% per annum mark three times for the following Singapore Savings Bonds:
Jan-23 3.26% per annum
Apr-23 3.15% per annum
May-23 3.07% per annum
In recent months, the average 10-year annual interest rates have been trending below 3% per annum, for the following Singapore Savings Bonds:
Jun-23 2.81% per annum
Jul-23: 2.82% per annum
Aug-23: 2.99% per annum
However, as shown above, there is also an uptick of average 10-year interest rates of Singapore Savings Bonds in the most recent three issuances, hence there could be hope that the September 2023 Singapore Savings Bonds could reach 3% or above for the 10-year average annual return.
As I have shared in this post, the average 10-year interest of Singapore Savings bonds seem to track the interest rate of the Singapore 6-month T-Bills. Like the Singapore Savings Bonds, the interest rate of the three most recent T-bills has been climbing up too:
BS23111W: 3.84% per annnum
BS23112N: 3.89% per annum
BS23113V: 3.99% per annum
However, the interest rate of the latest T-bill, BS23114Ab has declined from the high of 3.99%: cut off yield was lowered to 3.85% in the 20 July 2023 auction or a 3.5% decline.
With this, I believe the average 10-year annual interest rate of September 2023 Singapore Savings Bonds to be lower than the latest 2.99%. Applying a similar 3.5% discount, I estimated the average 10-year annual interest rate of September 2023 Singapore Savings Bonds to be 2.89% per annum.
Decent high interest rates close to 3% per annum is not an always, savers should take good opportunity of these interest rates that could be secured on a 10-year period like in the Singapore Savings Bonds, as part of wealth accumulation plan.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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