Dear readers, the application for October 2022 Singapore Savings Bonds is now open!
In an earlier post, I shared my expectation that the 10-year average return for October 2022 Singapore Savings Bonds could be around 2.6% to 2.7% per annum and that the interest rate will still be much better than what other banks could offer in terms of fixed deposits.
I was not wrong. In fact, the October 2022 Singapore Savings Bonds offers savers an average return of 2.75% per annum return over 10 years, which is more than what I have expected.
For the first 3 years, the actual per annum interest offered was 2.60% per year. The interest rate increases to 2.67% in Year 4 and then 2.74% per annum for Year 5 an Year 6.
Thereafter, the interest rate climbs to 2.81% in Year 7, then to 2.89% in Year 8 and finally 2.95% and 2.99% in Year 9 and Year 10 respectively.
I would urge savers to consider these recent tranches of Singapore Savings Bonds for the high interest rates they provide with liquidity (no lock-in or penalty for early withdrawals). However, the recent allotment per investors have been around $9,000 to $13,500 given the very attractive rates. Not only that, the maximum investment per saver is $200,000 in all tranches of Singapore Savings Bonds and I would wish that this cap be further elevated so that more Singaporeans can benefit from higher saving rates given the current inflation.