The effective interest rate for September 2020 Singapore Savings Bonds (SBOCT20 GX20100N) is 0.90% if you held it for 10 years. The interest rate has recovered slightly as compared to 0.88% in August. 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 (SBOCT20 GX20100N) after 1 year, the effective interest rate is 0.26%.

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 August 2020....