The Singapore Saving Bond's interest rate for 1 year holding has been making new high for the past three consecutive months. The issue in Jan 19 is not only a new high but it is also the first time the rate has exceeded 2%. Sounds attractive?

In fact, the Jan 19 issue may not be that attractive if the duration of holding is taken into consideration. This is because the long term average interest per annual has fallen to just 2.45% for holding 10 years. If you compared it to last month issue for Dec 2018, you will notice the average interest rate per annual is only higher for the first two years. After which, the rates are all lower than the previous issue. This means that the Jan 19 issue is only attractive if your intention is to hold