Singapore 6-month T-bills typically provide one of the highest interest rates or returns in recent years. As recent as March this year, the BS24106W 6-month T-bill offers a cut-off yield of 3.80% per annum. And just September last year, the BS23119H T-bill offers a cut-off yield of 4.07% per annum.
However, high interest rates seem to be a thing of the past. For the most recent 6-month T-bill, the BS24117F 6-month T-bill offers savers with just 3.13% per annum. Just how quickly interest rates have come down, with widely-anticipated expectations that the US Federal Reserves will begin cutting interest rates this month.
As interest rates of Singapore T-bills start coming down (note: it is not just interest rates for 6-month T-bills which have gone down, the latest Oct 24 Singapore Savings Bonds on offer now, provides savers with an average annual 10-year interest rate of just 2.77% per annum), I find that the “premium” of Singapore 6-month T-bills over the highest 6-month fixed deposits has narrowed.
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Considering the 3.13% per annum for the most recent BS24117F 6-month T-bills, we have actually some of the highest 6-month fixed deposits on town that is close to this interest rate:
CIMB: 2.95% per annum (personal online), 3% per annum (preferred online)
RHB: 2.95% per annum (personal), 3% per annum (premier)
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Hong Leong Finance: 3% per annum (S$5,000 to < S$50,000), 3.05% per annum (S$50,000 and above)
OCBC: 2.90% per annum
For me, high interest rates for savings help to offset the higher cost of living in recent years. With higher interest rates soon to be a thing of the past but higher cost of living and in the cost of basic necessities still pretty much the same, there are only selected items e.g. lower mortgage loan repayments for individuals.
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