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Fixed deposits losing their allure as yields spike on Singapore Savings Bonds

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Kelly Ng

Kelly Ng

Published Fri, Jul 1, 2022 · 05:50 AM
    • Singapore Savings Bonds may become increasingly attractive, as they come with a capital guarantee as well as a higher yield than fixed deposits.
    • Singapore Savings Bonds may become increasingly attractive, as they come with a capital guarantee as well as a higher yield than fixed deposits. PHOTO: BLOOMBERG

    RISING interest rates make fixed income products more enticing than they have been in years. But although rates on some fixed deposit products have nearly doubled in the last 2 months, the yields from Singapore Savings Bonds (SSBs) are proving hard to resist.

    The July 2022 tranche of SSBs saw applications worth S$1.3 billion. Applications for the tranche, with an average return of 2.7 per cent if held for 10 years, closed on Jun 27. A total of S$600 million was allotted.

    Applications for the August tranche open today (Jul 1), and are widely expected to yield even more and also receive more applications.

    fixed depositsInterest ratesSingapore banks

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