Dear readers, the latest 6-month Singapore Treasury Bill (T-Bill) which closed 7 May 25 (Auction Date) offers an interest rate of 2.3% per annum.
For investors who have bought Singapore T-Bills in recent years when the interest rates were above 3% per annum or more, definitely the current 2.3% per annum interest rate is disappointing. But investors have to note that the macro environment has changed.
Let us turn to the Singapore Savings Bond. The current tranche of Jun 2025 Singapore Savings Bond offers 2.56% per annum on average over 10-years. Again, in previous years, the cut-off yield or interest rate of Singapore T-bills is generally higher than that of Singapore Savings Bonds. But now, with this new normal, it is the other way round.
Let us turn to the interest rates offered by some of Singapore’s banks for their fixed deposits.
For a 9-month holding period and minimum placement amount of $30,000, OCBC offers 1.80% per annum (for deposits via branch walk-ins) and a 1.90% per annum for online transactions. More details are here.
UOB offers 2% per annum for a 6-month holding period for a minimum deposit of $10,000.
Hong Leong Finance offers a 2.20% per annum interest rate for a placement of $20,000 and above.
If you ask me, all the aforementioned interest rates are no longer attractive. And this is especially so when the high costs of living and basic necessities seem to be a new normal now (and risk-free interest rates have declined now).
On the current economical backdrop, I would still urge investors to continue to look for opportunities in the equities markets when there are any. I bargain-hunted for some stocks during the stock markets corrections on the back of Trump’s tariff-related initiatives.