Dear readers, how much will the January 2023 Singapore Savings Bonds be in terms of the returns to successful applicants over the 10-year holding period?
First, let us take a look at the average 10-year return for the recent tranches of the Singapore Savings Bonds:
December 2022 Singapore Savings Bonds: 3.47%
November 2022 Singapore Savings Bonds: 3.21%
October 2022 Singapore Savings Bonds: 2.75%
September 2022 Singapore Savings Bonds: 2.80%
August 2022 Singapore Savings Bonds: 2.88%
July 2022 Singapore Savings Bonds: 2.71%
I am capping off the list of the recent Singapore Savings Bonds to those in the second half of this year since the second half of the year was the period where interest rates started to climb more aggressively.
We can see from the above list that there is not a liner trend in terms of the 10-year annual return of the Singapore Savings Bonds: i.e. no guarantee that the average 10-year return will always increase with successive launch of the Singapore Savings Bonds.
Based on the current state of US inflation figures and the list above, I am pretty confident to say that the average 10-year return of the Jan 2023 Singapore Savings Bonds will still be above 3%, which is what a number of financial institutions here are offering in terms of fixed deposit.
If I were to make a prediction, my guess is for the 10-year average return of the January 2023 Singapore Savings Bond to be at least the average of the November and December 2022 Singapore Savings Bond, that is at least 3.34% per annum.
So, let us see whether my prediction for the average 10-year return of the January 2023 Singapore Savings Bonds is correct.
Note: this post was first published in Nov 2022. 1 Dec 22 update: application for Jan 23 Singapore Savings Bonds is out and the 10-year average return is 3.26% per annum.