Dear readers, in this high interest environment, many of us are making the best use of a number of financial instruments to take advantage of the relatively high interest rates. The most popular financial instruments on the market are Singapore Savings Bonds, Treasury Bills and Fixed Deposits. In this post, get to know the amazing, thrilling opportunities among Singapore Savings Bonds (SSB), Treasury Bills (T-Bills) and Fixed Deposits!
Each of the above financial instruments offers different interest rates for different tenures and for different needs. But do you know that there is one insight that cuts across Singapore Savings Bonds, T-Bills and Fixed Deposit? One insight that is in relation to the annual returns? Without further ado, let me reveal this insight to All!
Mathematically, this insight is just none other than:
return (average annualized 10-year return) of Singapore Savings Bonds < annual return of Fixed Deposit < annual return of T-Bill
Logically, the above is reasonable given that the typical tenure of
Singapore Savings Bonds > Fixed Deposit > T-Bill
To see how the above applies to the current Singapore Savings Bonds, Treasury-Bills and Fixed Deposits, the latest 6-month treasury bills, BS23110X has a cut-off yield of 3.85%.
The above latest treasury bill return is definitely much higher than the current Singapore fixed deposit returns, typically now at around 3% to 3.20% per annum (of course, there will bound to be some exception, e.g. MayBank which offers a fixed deposit return of 3.90% per annum at this time of writing).
And in terms of returns, Singapore Fixed Deposits are higher than Singapore Savings Bonds. For example, the Jul 2023 Singapore Savings Bonds offer an annual return of 2.82% per annum for 10 years.
The above is how the state of things play out for the three most attractive saving options. Interest rates offer are often dependent on tenure periods.
And I must also say for some banks, annual interest rates are also dependent on the amount of fixed deposit amount.
For example, DBS is offering a 3.20% per annum fixed deposit for a tenure as long as 60 months or 5 years! However, the caveat is that this 3.20% per annum interest is only for fixed deposit amounts up to the first $19,999 of the deposit and beyond this amount, DBS’s board rate of 0.05% per annum applies.
I hope you find this post useful to you savings needs and All the Best in your Savings journey!
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! I also run another blog Singapore Stocks Investing with similar useful insights! 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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