Dear readers, I believe you might have read that the cut-off yield of the latest 6-month T-bill has reached below 3% per annum!
Yes, that’s right! The cut-off yield of BS24119S 6-month T-bill is 2.97%. This is indeed a pivotal moment for subscribers of T-bills as the 3% psychological interest rate of the T-bills has been broken down!
So, where can one still get more than 3% per annum for their short-term deposits? Yes, that’s right, the title of my post: Short-term deposits: where to get more than 3% per annum?
Before this, the cut-off yield of the 6-month T-bills are no longer that attractive since it is now closer to what fixed deposits offer. For example, one can obtain a 2.80% per annum for a 6-month fixed deposits with Hong Leong Finance with a deposit amount of $50,000 and above. Over at OCBC, 2.60% per annum is the bank’s best interest rates for internet banking placement of fixed deposit with minimum $30,000. OCBC’s counterpart, UOB offers 2.70% per annum for its 6-month fixed deposit.
My answer to achieving 3% per annum currently is none other than Money Market Fund. As of this writing, POEMS SMART PARK is offering 3.17% per annum which I believe is really a decent reasonable rate.
I have parked my monies in Singapore Savings Bonds when interest rates are higher than now to lock in these higher rates for a longer time. This was even though Singapore T-bills generally offer higher rates than Singapore Savings Bonds. I did this as I understand that it is a matter of time before interest rates go down, as what we are seeing now.