Dear readers, the latest six-month T-bill, BS25104H closed with an interest of rate 2.75% per annum.
I was surprised at this interest rate because 3% per annum or more is the interest rate synonymous with six-month T-bills.
And the aforementioned is not just the only surprising fact for savers who are into Singapore Savings Bonds and T-bills.
To recap, the interest rate of the shorter-term T-bills is always higher than the longer-term Singapore Savings Bonds.
But not anymore.
The latest SBAPR25 Singapore Savings Bonds which is open for application has an average 10-year interest rate of 2.85% which is now higher than the interest rate of the aforementioned T-bill which has just closed.
So, savers who have invested into past tranches of the Singapore Savings Bonds even though the interest rates are lower than those of Singapore Treasury Bills may be better off now.
But I don’t think many of the aforementioned savers have this goal to outperform investing in T-bills, goals of these long-term savers are more to save and reap some decent (which though may not be very attractive) interest rates.