A new product is going to be available soon for people who are risk averse but are looking for better returns. Enter the Singapore Savings Bond! Singapore Savings Bonds will offer the higher returns of a long-term bond and give what investors call a term premium, while retaining the flexibility of a shorter-term deposit, and the safety of an instrument guaranteed by the Government. (Senior Minister of State for Finance, Josephine Teo) Source: CNA In summary: 1. Interest rates linked to long term Singapore Government Securities.

2. Ability to get back our money at any time without penalty.

 

3. A "step-up" feature will pay long term savers more interest with each passing year.

4. Guaranteed by the Singapore government.

This could spell trouble for banks here as I foresee savers moving their money from fixed deposits to these Singapore Savings Bonds. Well, I know I am really looking forward to this......