Dear readers, there are opportunities in Singapore Savings Bonds that are not to be missed! First, as recap, the application for the June 2023 Singapore Savings Bonds will close by today. At 2.81% average return over 10-years, definitely, the average returns of the Jun 2023 savings bonds are more humble than its fixed deposit counterparts where average of 3.30% per annum or even higher is not uncommon.
However, savers must understand that there is a reason for the lower average interest of Singapore Savings Bonds as compared with fixed deposits. The reason is none other than the long tenure of the Singapore Savings Bonds, which is 10 years as compared to the relatively shorter tenure for the fixed deposits.
At 2.81% average annual return and with the option for savers to liquidate at no cost anytime after allocation of the bond, the proposition of the Singapore Savings Bonds is attractive, especially since interest rates may not be as high going forward in the years to come.
And even if interest rates of future Singapore Savings Bonds can go even higher, one can always “replace” the lower-interest Singapore Savings Bonds they have with the higher interest ones.
An investment in Singapore Savings Bonds will lock in the returns over 10 years period as versus the short-term fixed deposit with interest rates ever changing in tandem with the global economy.
And not to mention, earlier withdrawals of fixed deposits will result in some penalty in the form of a termination fee.
Singapore fixed deposits are underrated, underestimated in my opinion, and that is where opportunities abound.
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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