The May 2024 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.06% over 10 years.
The first 6 years yield a flat 2.99% per annum; 7th year yields 3.03% p.a, 8th year yields 3.2% p.a. and 9th, 10th years yield 3.27% p.a.
Although such yield is lower than other lower risk alternatives such as T Bills and money market funds which easily yield more than 3% currently, it is higher than CPF OA rate of 2.5% p.a. and some bank fixed deposits which yield less than 3%.
If we also consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above 3% p.a for the next decade, then this tranche of SSB is fairly enticing for us to park our spare cash at zero risk, capital guaranteed for the mid to long-term.
We could redeem SSB anytime, earning interest
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