Saturday, 13 January 2018

This is better than many Fixed Deposit for this month

I used to be a fixed deposit person, putting my money in fixed deposit to earn the interests. So when I found out that this low risk instrument earns better than fixed deposit (or at least for this month), I am totally surprised! Based on risk and liquidity, should fixed deposit will yield better interest than them for the same tenure.

Let me give you some examples:
-  UOB gives a 1.2% per annum interest (with minimum deposit of $20,000) for a 10 month fixed deposit
- OCBC gives a 1.18% per annum interest (with minimum deposit of $20,000) for a 12 month fixed deposit
- Standard chartered gives their non- priority members 1.2% per annum for a 7 month tenor, and 1.3% per annum for a 10 month tenor, with minimum placement of $25,000. For their priority banking members, they get 1.25% per annum for a 7 month tenor, and 1.35% for a 12 month tenor.

For your information, this instrument that I am talking about is very flexible, and can be withdrawn any month (on a particular date) after its issue date, and you can start as low as $500! And guess what? It's giving you 1.55% on your first year, and 1.59% on your second year. What's more, unlike fixed deposit where you only see the interest at the end of the entire tenor, this instrument gives you your interest every 6 months. The only draw back is that you pay $2 when you get this instrument, and another $2 if you withdraw it in less than 10 years. These additional transaction fees are easily made up by the difference in interest rate.

What is this?

It is non other than our Singapore's Saving Bonds, and since this article is written in Jan 2018, I am comparing some promotional fixed deposit rates with the Singapore Saving Bonds that is to be issued in 1 Feb 2018 (you have to apply by 26 Jan 2018, 9:00 pm).

This is not a sponsored post. The writer expresses her thoughts and observation in this article.

The post is based on the online research at the time of writing. Websites referred to are referenced (via URL link to key words) in the post. Note that the information may have changed when you are reading. In addition, while the writer of this article tries to be as accurate as possible, there is no guarantee on the accuracy, completeness, suitability or validity of any information. In addition, all ideas expressed in this blog should not be thought of as an enticement to buy or sell any products, securities, assets, commodities or whatsoever mentioned.

See also, the section on disclaimer at the bottom of the website.

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