Dear readers, Singapore Savings Bonds have become very popular and much talked-about these days after its interest rates become attractive.
For the upcoming Aug 2022 Singapore Savings Bonds, the interest rate for the 1st year is 2% and the average annual interest for a 10-year holding period is at 3%.
However attractive the Singapore Savings Bonds, the maximum individual holding limit is capped at $200,000. This means to say for some cash rich Singaporeans, even if they intend to buy more of the bonds beyond $200,000, they would not be able to do so, unless they redeem and liquidate some of the previous lower-interest Singapore Savings Bonds first and use the liquidity to purchase the higher interest Bonds. But this may prove troublesome to many, having to switch back here and forth, losing the opportunity time and forfeiting the next interests that the redeemed bonds may earn in just a few months time. And, and this is a big And, there is no guarantee that all of what they apply for the Singapore Savings Bonds may all be allocated to them.
This is why, I hope the Singapore government can increase the maximum individual holding limit for Singapore Savings Bonds, make it $300,000 or even still double to $400,000. Doing so, will make all Singaporean savers a winner as they will be able to reap a nice 3% average annual interest which could go even higher in this high cost and volatile market backdrop. These annual interests can help offset the high costs of living and inflation right now.
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!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!