The Sep 2023 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.06% over 10 years.
The first 7 years yield a flat 3.01% per annum; 8th year yields 3.14% p.a. and 9th, 10th years yield 3.2% p.a.
This is not very appealing considering that other low to risk-free alternatives such as T Bills and bank fixed deposits easily yield more than 3.5% currently.
However, if we consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above 3% p.a and above CPF OA yield of 2.5% p.a. for the next decade, then this tranche of SSB is fairly decent for us to park our spare cash at zero risk, capital guaranteed for the long-term.
We could redeem SSB anytime , earning interest at 3.01% while getting back our capital for deployment to other investments or large item purchases unlike...