Singapore savings bond

First-year interest rate starts at 3.26%, if bonds are held for 10 years, average return is 3.47%. Read more at straitstimes.com.

Applications for the December tranche began at 6pm on Tuesday and will close at 9pm on Nov 25. Quick calculations show that a person who is allotted $10,000 worth of December’s SSBs will earn $326 if he decides to redeem his savings bonds a year later. If he applies for more than the cut-off amount, he will either get the cut-off amount or $500 more than the cut-off amount. If a person applies for savings bonds equal to or less than the cut-off amount, he will get the full amount he applied for. If he holds the bonds for 10 years to maturity, he earns $3,486. If the December SSBs are held for 10 years to maturity, the average return is 3.47 per cent.