Chasing for your cash

I am spoilt for choice. Where can I park my cash for higher interest rate? That is if you still have cash to earn interest income in this rising interest rates environment. Just for October alone, there are three options or 7 choices I can consider.

Singapore Government Treasury Bills (T-Bills)

  1. 6-Month Treasury-bill on 6 October (BS22120E)
  2. 1-Year Treasury-bill on 6 October (BY22103A)
  3. 6-Month Treasury-bill on 19 October (BS22121F)

Based on past issues of T-Bills, the most recent cut-off yield for one year was 3.1% pa and the cut-off yield for 6 months was 3.32% pa.

See MAS website for details.

Singapore Savings Bond (SSB)

  1. GX22110A – opens for application on 3 October. If SSB were held for 10 years, average annual return is 3.21% pa.

Advertisement appeared in The Straits Times today.

Singapore dollar Fixed Deposits (FD)

  1. OCBC – Promotion Interest rate for 1-year FD is 2.90% pa. Minimum placement is $20,000 fresh fund.
  2. UOB – Promotion Interest rate for 1-year FD is 2.90% pa. Minimum placement is $20,000 fresh fund.
  3. UOB – Promotion Interest rate for 15-month FD is 3.00% pa. Minimum placement is $20,000 fresh fund.

Factor to consider

In the case of Singapore Savings Bond (SSB), one may NOT get ALL they applied for.

Eg. The 1 August SSB issue with 3.00% pa annual return, applicants who applied for S$9,500 or higher were allotted either S$9,000 or S$9,500. Approximately 8.15% of these applicants were selected at random and allotted the additional S$500.

Additional information: For Treasury-Bill (T-Bill), they are available for application on internet banking from 6.00 pm of the date of announcing T- Bill.

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The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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