Dear readers, yesterday may seem to be an ordinary day on Singapore’s finance front. However, unbeknown to many, yesterday was actually a Watershed moment in Singapore Savings scene. Without further ado, let me share with you why.
Yesterday (3 Jul 2023), the August Singapore Savings Bonds (SBAug23) was open for application. With the average annual 10-year interest rate of June 2023 and July 2023 Singapore Savings Bonds at 2.81% per annum and 2.82% per annum, I have predicted on this website that likely the average annual 10-year interest rate of August 2023 Singapore Savings Bonds will drop further. I have estimated that the above average annual 10-year interest rate will go all the way to 2.60% per annum.
Hence it was to my surprise that the average annual 10-year interest rate of August 2023 Singapore Savings Bonds, as per yesterday’s announcement of the opening of the application of the bond not only increased, but went up to a respectable 2.99%. On an annual basis, the actual interest for the August 2023 Savings Bonds is below.
Year 1 to Year 7: 2.97% per annum
Year 8: 3.02% per annum
Year 9 and Year 10: 3.04% per annum
So, how is the August 2023 Singapore Savings Bond a watershed moment in Singapore’s Saving scene.
Well, the August 2023 Singapore Savings Bond marks a turn in many months where the average 10-year annual interest rate of Singapore Savings Bonds is always lower than the fixed deposit interest rates offered by banks.
Both OCBC and UOB are currently offering 2.70% per annum each for their fixed deposit promotions and hence at 2.99% per annum for the average annual 10-year interest rate, the August 2023 Singapore Savings Bonds triumphs the fixed deposit interest rates offered by two of Singapore’s largest banks. Definitely, there are some other smaller banks that still offer 3%+ per annum interest rate for fixed deposit, but I believe with the largest banks here offering below 3% per annum fixed deposit interest, it is a matter of time before other banks here follow suit.
A watershed moment where the longer-term savings interest rate surpass that of the fixed deposits from Singapore’s largest bank, that is truly a good news for longer-term savers!
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!