The effective interest rate for
September 2020 Singapore Savings Bonds (SBSEP20 GX20090H) is 0.88% if you held it for 10 years. The COVID-19 pandemic that started in March 2020 had caused the interest rates to fall dramatically across fixed deposits and savings accounts.
The minimum amount you can purchase is S$500. If you decide to hold and sell the current issue (SBSEP20 GX20090H) after 1 year, the effective interest rate is 0.24%.
Singapore Savings Bonds Alternatives
I wouldn’t put my money into the Singapore Savings Bonds as the interest rate is simply too low. Fortunately, there are alternative financial instruments out there that offer higher interest rates. They are short term endowment plans such as NTUC Income Gro Capital Ease, Tiq 3 Year Endowment Plan and China Taiping i-Save. You can read more about them in
Best Endowment Plans In July 2020.
If the lock in period for Endowment Plans is a concern for you,...