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

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.