I’ve been reading about bonds for sometime and in one of my previous post, I’ve mentioned that I will be establishing a separate new war-chest in my last portfolio update in an attempt to build up a sizable cash position. There is some balancing work that I have been doing this month and utilizing a small portion of the cash, I’ve decided to take up the SSB that is issued this month.
As the cash that is sitting in the warchest are waiting to be deployed, placing them into the SSB allows me to get a higher interest than from the bank. Also, I take the SSB as a form of mini-diversification as well as an avenue to temporarily park my money before the funds here are being deployed.
In a brief summary, the SSB is suitable for you IF:
1. You have limited funds/insufficient funds for a FD.
2. Require flexibility …