Here’s a quick note: The new six-month Singapore T-bill will be auctioned next Thursday, 29 September 2022. If you want to subscribe to the T-bill, you need to enter until September 29preferably September 28.
In the past, I have shared with you the benefits of Singapore T-bills, their ideal uses and ways to subscribe to them here: How to buy 6-month Singapore T-Bills or 1-year SGS bonds.
In the last issue announced two weeks ago and recently completed, current Treasuries traded at a yield of 2.92%. In the end, the yield cut for T-bills ended at 3.30%, much higher than expected.
If you placed a non-competitive bidwhich most of us do, you would get 3.30%.
The table above shows the current six-month Singapore Treasury bond yield. This is to give you an idea of recent yield trends, but honestly, whether it’s 3%, or 3.2%, or 2.7%, that’s a decent yield, unless you’re a micromanager who trying to win every ounce.
Given the trend in rates, it is likely that we will continue to see this kind of profitability for some time to come.
Here are your other options for higher returns, safe and short-term savings and investments for Singaporeans in 2022
You may wonder if other savings and investment options will yield higher returns, but they are relatively safe and fairly liquid.
Here are various other categories of securities to consider:
|Type of securities||Return range||Blocking||Minimum|
|Time and term deposits at promotional rates||1.8% – 2.6%||From 12 to 24 million||> $20,000|
|Singapore Savings Bonds (SSB)||2%-2.63%||1M||> $1,000|
|SGS 6 Month Treasury Bill||2.5% – 2.95%||6M||> $1,000|
|1 Year SGS Bond||2.92%||12M||> $1,000|
|Short term insurance||1.8-2.7%||2G – 3G||>$10,000|
|Money market funds||2.39%||1 W||> $100|
This table is updated as of September 8, 2022.
Here are some more comments about the different types of securities:
|Type of securities||Notes|
|Time and term deposits at promotional rates|
|Singapore Savings Bonds (SSB)||A maximum of $200,000 per person. If there is demand, it can be difficult to get an allocation. A good example of SSB.|
|SGS 6 Month Treasury Bill||Suitable if you have a lot of cash to deploy. A Guide to Buying Treasury Bills.|
|1 Year SGS Bond||Suitable if you have a lot of cash to deploy. A Guide to Buying Treasury Bills.|
|Short term insurance||Make sure they have a capital guarantee. There is usually a maximum. A good example is Gro Capital Ease.|
|Money market funds||Suitable if you have a lot of cash to deploy. A fund that invests in fixed deposits will actively help you get the highest preferential interest rates. Read the prospectus or prospectus to ensure that the fund invests only in fixed deposits and their equivalents. MoneyOwl’s WiseSaver is an example of the Fullerton Cash Fund.|
There are other securities or products that may not meet your criteria of return of principal, high liquidity and good yield. Structured deposits contain derivatives that increase the degree of risk. Many robo-advisor and bank money management portfolios contain short-term bond funds. Their values may fluctuate in the short term and may not be ideal if you require a 100% return of principal.
Earnings are not set in stone and will fluctuate based on current short-term interest rates. You should adopt more goal-oriented planning and use the most appropriate instruments/securities to help you accumulate or spend your wealth instead of investing all your money in short-term savings and investments.
If you want to trade these stocks that I mentioned, you can open an account at Interactive brokers. Interactive Brokers is the leading low cost and efficient broker that I use and trust to invest and trade my holdings in Singapore, USA, London and Hong Kong stock exchanges. They allow you to trade stocks, ETFs, options, futures, currencies, bonds and funds worldwide from one integrated account.
You can read more about my thoughts on Interactive Brokers at this Interactive Brokers Deep Dive series, starting with how easy it is to create and fund your Interactive Brokers account.