Many of us are savers or simply someone who wish to get the best returns on idling cash. With the raising interest rate, it’s heaven for many people! One can easily get 2-4% with little or no risk.
Although it seems like interest rates hiking will last very long, but it is also likely that the rates will go down one day. Before the arrival of that day, Singapore Savings Bonds is a very good option that let you locked up decent rates for 10 years. Now the yield is above 3% for 10 years after a long while (read: SBAPR23 GX23040S – Singapore Saving Bonds (SSB) above 3% again. Buy or Bye?)
Is this a bye or buy?
More about this Month Singapore Saving Bonds SBSEP23 GX23090F:
- Average return over 10 years: 3.06%
- 1st year to 10th year interest: 3.01 to 3.20%
- Amount Offered: 600 millions
- Interest Payment Date: Upcoming payment: 01 Mar 2024. Subsequent payments (until maturity): Every 6 months on 01 Sep and 01 Mar
- Application Closing Date: 28 Aug 2023, 9pm
- Allotment Date: 29 Aug 2023, after 3pm
Let’s see the breakdown of the 10 years rate.
1st year is 3.01% whereas the last year is 3.20% with average at 3.06%. Great rates (although lousier than the last issue with more than 3%. (read: SBAPR23 GX23040S – Singapore Saving Bonds (SSB) above 3% again. Buy or Bye?).
S$600.0 million are offered with last day of application on 28 Aug 2023, 9pm. Upcoming payment is on 01 Mar 2024 with subsequent payments (until maturity): Every 6 months on 01 Sep and 01 Mar.
Buy or Bye?
Hence, should we buy or bye?
Let’s us recap the advantages of SSB first:
- Very safe – backed by Singapore Government
- Locked down decent rates of around 3% for 10 years.
- Easy to redeem and can redeem partial
- Liquidity needs maximum of 1 month where you can get your money back. Hence suitable as emergency fund.
- Limit of 200k should be good enough for most people.
- Can build Bond Ladder to get monthly income (which I already did)
Let’s us recap the disadvantages of SSB:
- Short term rates are lower than banks’ fixed deposits, money market funds such as MoneyOwl,etc of around 3.5% and above.
- Risk Free 6 month treasury yield is close to 4% which is higher
- Low returns
- 1 month liquidity to redeem your funds may be too long for people who need the funds immediately.
Hence the question is should we buy or bye?
Comparatively, this issue is not better than the SBAPR23 issue few months ago but this is getting better. If we look at US treasury yield – 10 years rate is now 4%. Where is recession? Is the recession coming? Your guess is as good as mine.
But there is one very important thing that one should have regardless or recession or not is
But warchest has the issue of idling earning very little return, SSB would help to solve this. Personally, I would likely be buying some SSB for this month. I didn’t manage to get the GXS bank at 3.48% and my esaver 4% promotion of #m23a would end at 31 Aug 2023, this means I would have additional idling cash.
Market will be volatile for these few months (Aug, Sep, Oct), chances is I will be able to deploy these money! If not, I get some SSB or liquid bank account (or MMF) with higher interest to wait.
Good articles that you should read!
People are drawn to dividend investing.
Why? Firstly, dividends provide a regular stream of income, allowing investors to receive a portion of the company’s profits on a periodic basis. This can be particularly attractive for individuals seeking consistent cash flow or looking to supplement their existing income. Additionally, dividend investing is often viewed as a more stable and predictable investment strategy compared to relying solely on capital appreciation.
I always write and share articles, especially on dividends which many people love them. Do read them!
- Simplified Guide to the Key Gist of Grant of Probate and Estate Planning
- Cheapest and best way to trade Singapore Stocks with CDP
- Mastering Dividend Investing: 5 Evergreen Investment Principles
- Unlock Lucrative Returns with IAPD: A High-Yield ETF Providing 7% Annual Yield and Quarterly Payouts
- Unlock Lucrative Returns with SDIV: A High-Yield ETF Providing 11% Annual Yield and Monthly Payouts
- If I am a dividend investor, this is what I would do….
- 7 Things to consider before buy a dividend stock
- 4 Dividend ETFs that can let you sleep well even in the scary bear market
- 5 Best Counters for Passive Dividend Investing
- The Three MOST Important Traits of an Investor
- What is the best investment strategy in the world?
- Ultimate Strategy of buying REITS: XXX instead of X000?
- Ultimate Free 2 Days Reit MasterClass: Exclusive at Careyourpresent.com only!
Alternatively, you can go the right side of my page, there is a search bar where you can simply search “dividend” to see all my articles related to dividends!
Of course, you can search for other things that would interest you such as “Careyourpresent”, “Reits”, “Side Hustles”, “Fixed Incomes”, “Savings” etc.
Money just buy you the chance of freedom.
When you are young and working, you exchange time for money. When you are old, you can have lots of money but you can’t buy time back, especially the things that you have missed while busying striking out in career. Of course, if you love your career, and consciously know that you are missing out the first time your child walk or talk, that’s ok, but if you are the other spectrum, please do something about it.
Your kids grew up and they no longer need you to accompany them. They no longer want to sit on your lap to share/do things with you…all these time you spent in your 9 to 6 or even longer cubicles…can the money that you have earned by you back these?
We always thought we have more time with our old parents, but we are wrong. Time with them is ticking away every day. One day it will suddenly be gone. There is no regret medicine, no reset in time. Gone is gone and cannot come back. No matter you are billionaires or millionaires, you cannot reset this.
We always thought that we have more time with our spouse every day, but we are wrong. One day they will be gone too. When you read this, please go tell your spouse that you love him/her and he or she is the best thing that you ever had in your life.
I have picked out some of the more life reflecting articles of the CAREYOURPRESENT series. Do read them:
- The Best Advice to Parents and Child
- What if Later never come?
- What will you bring with you on your last day on Earth?
- Time is the ultimate currency, not money
- Our Life only have 5 short Days – we should live the best for every day
- Truly understand Living in the Moment now
- 11 Important Unexpected Life and Money lessons to learn from Your Children
- The days are long but the years are short
- Ditch your mobile phone to build real life
- Careyourpresent: Time is the most important
- Careyourpresent: What is your purpose of life?
- Careyourpresent : Greatest Regrets in life
- Careyourpresent : You might not believe it. It’s little unexpected things that make up a real life
- Careyourpresent: Something only happen once in life, if you missed it, it’s gone forever…
- Careyourpresent : Why is Gold useful?
- Careyourpresent: Frozen. Let it go!
Love your life daily.
You have one less day with your spouse, parents, children and yourself.
Time is ticking away.
For each passing day,
Enjoy and Treasure your Life!
For those who are interested in regular updates of my articles, please join the others to sign up for my free newsletter to has my newest blogposts sent to your mailbox for free!
For real time exclusive updates on market news/life (especially Crypto markets where the news move fast, important news will be shared directly via tweets or telegrams), do also join the platforms below and engage with other like-minded people!
- Telegram Group (Chat with me and other like minded people!)
- Telegram Channel (Get the latest updates on the markets/life!)
- RSS Feed
You may also contact me via [email protected].
If you’re looking referral codes, do check out my referral and ebook page. Give it a try and who knows? You might end up loving these platforms! To be absolutely fair to all the readers, I am definitely using all these companies and they are useful to me! Likely will be useful to you too!
At the same referral and ebook page, you can also download my free ebooks and other free resources.
For quick references to these resources, you can see below.
- Ebooks and other useful resources on enhancing productivity (Investment, Excel, Notion etc). Currently most of it are free at this moment (subject to change).
- WeBull: A powerful brokerage with nice free welcome gift. You can refer to my guide here on how to signup! 4 Simple step only! Click here to register a new account!
- MoneyOwl: You can use this 6SHU-93MC to get free grab vouchers and highly safe liquid cash fund account.
- Trust Bank – You will enjoy free FairPrice E-Voucher referral if you sign up via my referral code KNDBPEPT. Simply download the Trust Bank SG App on the App Store or Google Play Store. Tap on “Use referral code” immediately after you start the app and key in: KNDBPEPT
- FSMOne: P0413007. Good account to keep liquid cash in autosweep and to purchase investment at low fee.
- Hostinger: You can use this link for hosting your new website. 20% off hosting!
- Crypto.com: Use my referral link https://crypto.com/app/h92xdfarkq to sign up for Crypto.com and we both get $25 USD 🙂