Dear readers, recently a six-month T-bill which I bought has matured.
I felt a sense of satisfaction in looking at the capital and interest earned credited into my bank account on the day of maturity. It seems that I am rewarded for waiting out the holding of the T-bill to its maturity.
But therein lies the irony. Isn’t investment into Singapore Savings Bonds and T-bills be for monies that one should not be using for a long period of time? Hence it seems ironic that I feel a sense of satisfaction in getting back the capital again.
It does not always turn out the way as described above. There was a period when I need to redeem some of the Singapore Savings Bonds for some purchases but having done so, it was still worth the effort of redeeming just simply for the fact that the monies in the bonds earn much high interest rates than those paid by the banks.
It is a bit different for T-bills: to “redeem” or liquidate the T-bill so to speak before maturity of the bills, one has to sell the T-bill in the secondary market and this can come at a risk of capital loss.
In my opinion, it is not a matter of securing as high an interest rate but rather to secure reasonably high rates for a long period.
And this is why and not surprising, that I used the capital liquidated from the matured T-bill into the next Singapore Savings Bonds notwithstanding the 2.99% per annum for the first few years of the bond is not the highest: at least they are still decent.
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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