Dear readers, for the upcoming July 23 Singapore Savings Bonds (SBJul23), are there opportunities now? Especially since banks have already lowered their fixed deposit interest offerings in recent months?
As a quick recap, let us take a look at the average annual 10-year return of the Singapore Savings Bonds this year, as follows.
Jan-23 3.26% per annum
Feb-23 2.97% per annum
Mar-23 2.90% per annum
Apr-23 3.15% per annum
May-23 3.07% per annum
Jun-23 2.81% per annum (most recent tranche, more details on Singapore Savings Bonds website).
Looking at the first six Singapore Savings Bonds issued this year, we noticed that 50% of them have average annual 10-year returns below 3% per annum. Average 10-year annual return for these 6 Singapore Savings Bonds is 3.03% per annum.
But in case, you have thought that returns from Singapore Savings Bonds have started coming down, in tandem with recent banks reducing their fixed deposit interest rates in recent months, let us take a look at the average 10-year returns of the Jul 22 to Dec 22 Singapore Savings Bonds as below.
Jul-22 2.71%
Aug-22 3.00%
Sep-22 2.80%
Oct-22 2.75%
Nov-22 3.21%
Dec-22 3.47%
The average 10-year annual return for these 6 Singapore Savings Bonds (from Jul 22 to Dec 22) is 2.99% per annum or also close to 3% per annum. So based on the aforementioned, the average of the Singapore Savings Bond for first half of this year (2023) is almost similar to that for the second half of last year 2022, at close to 3%.
I would think that the annual average 10-year return of July 23 Singapore Savings Bonds (SBJul23) will continue to be lower and give an estimate of 2.75% per annum here. But regardless, I have shared here on how Singapore Savings Bonds can be an attractive proposition in growing your savings.
Readers may also want to recap that the average 10-year return or interest of Singapore Savings Bonds issued a year ago were even more humble: 2.53% (Jun 22 SSB), 2.09% (May 22 SSB), 1.91% (Apr 22 SSB). It was only from Jun 22 on that the average 10-year return of Singapore Savings Bonds started climbing to culminate in a high of 3.47% per annum for the Dec 22 Singapore Savings Bonds.
I always think that if there is an option to lock in fairly decent high returns for some time (like the 10 year tenure from Singapore Savings Bonds), savers may want to lock in these before interest rates go south again.
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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