2020 was an interesting year as we saw the launch of cash management products, as an answer to consumer bemoaning the cuts to bank interest rates, which have plummeted even more ever since.

A history of high interest rates

Once upon a time, high-yield bank savings accounts used to be a good answer for risk-adverse folks who simply wanted inflation-beating returns without investing their monies. I recommended readers to park their income and savings into such an account as the first step of their financial journey, and even reviewed several bank accounts that gave you between 2%3% and even 4% on this blog. Unfortunately from mid-2020, many of these bank accounts have since reduced their rates accordingly as well.

Then came the Singapore Savings Bonds in 2015, which also offered rates as high as 1.98% (1st year) to 2.2% (10th year) p.a. interest rate in its February 2019 tranche. However, even this started falling significantly from May 2020 onward