You must be hurting from the falling interest rates offered by banks – CIMB, DBS, OCBC, UOB and Stanchart, among others, have all cut their deposit rates significantly following interest rate cuts in the US. Then, when you thought, oh – we still have Singapore Savings Bonds right – you’ll be sad to find out that SSB yields have also fallen off the cliff and now averages under 1% after holding for 10 years. 10 years! For just 0.8% per year!

Alternatives exist, but they are riskier

Cash in bank deposits and cash loaned to the government via SSBs are two of the safest BUT lowest yielding investment options to park your cash. However, for those looking to seek a higher yielding option but retain the properties of cash, there are still alternatives in the market… thankfully. Before we even go there, let’s quickly understand why those two options have super low yields....