Dear readers, I see Singapore savers smiling more earlier this week.
This is really because of the outcome of the October 2022 Singapore Savings Bonds.
As compared to previous recent tranches of the Singapore Savings Bonds (e.g. August, September savings bonds), there is now a higher allocation of the October Savings Bonds for applicants. Applicants who applied for S$42,500 or higher were allotted either S$42,000 or S$42,500.
But this could also be due to the slightly lower interest rate of the October 2022 Savings Bonds as compared with August 2022, September 2022 Savings Bonds which attract lower demand. The lower demand hence results in a higher allotment per applicant among a small group.
Though at slightly a lower interest rate compared to previous tranches, the average 10-year return of the October 2022 Singapore Savings Bonds is 2.75% per annum, with 2.6% per annum each year for the first three years and hence the October 2022 Singapore Savings Bond is still respectable and decent.
And same goes with the higher fixed deposits which still continue to draw crowds to banks.