The effective interest rate for April 2017 Singapore Savings Bonds is 2.27%. Seems that interest rate is declining but it still beats the traditional fixed deposits. Banks are also slashing its interest rates. A good example will be OCBC 360. (Read more here: OCBC 360 Account Makes Earning Additional Interest More and So Complicated)

While browsing the Singapore Savings Bond website, I came across the FAQ they have put up on their website.

Here are some things I do not know of and may be interesting to you as well

Does the Government need the money? What will the Government use the money for?

The Government is not issuing Savings Bonds to finance its expenditure. The money raised from issuing Savings Bonds cannot be spent and will be invested.

Are Savings Bonds going to be a permanent feature?

The Government is committed to maintaining the Savings Bond programme …