Singapore Savings Bond

Rising yields from the Singapore Savings Bonds have been attracting more investors in recent months. Is it too late for you to jump in?

“Staying invested in a suitable portfolio is the best way to reach your goals in your time frame. Hence, lump sum investments could be preferred to lock in the current yield. While different instruments offer varying degrees of safety and returns, they typically help to moderate overall risks by providing stable returns for a portion of the portfolio. Most importantly, investors are free to withdraw or redeem the savings bond at any time even though the product is issued with a 10-year maturity term. “Hence, I would not be surprised if the upcoming issues offer lower average 10-year interest rates. While the average rate dipped slightly to 2.8 per cent for the September issue, it remains the second highest so far in 2022. Mr Victor Wong, director of wealth management at Financial Alliance, suggested looking at the US 10-year bond yield for some guidance. Rising yields from the Singapore Savings Bonds have been attracting more investors in recent months. “If policy tightening can bring down inflation rapidly, possibly together with the easing of other supply chain factors, rates may stop increasing. “If you are looking to use a bucket of funds in the next one to five years – and this can be income for living expenses for retirees or saving for a property for young persons – you do not want to take big risks with this sum of money. CNA asks the experts. “And if you try to ‘churn’ the Singapore Savings Bonds – redeeming lower interest ones to apply for new issues – you will incur these fees,” she added.