Singapore Savings Bonds are looking attractive again

AFTER the recent surge in bond yields, savers can breathe easier. Banks and finance companies are coming out with new fixed deposit promotions that yield roughly an annualised 1 to 1.3 per cent a year. And Singapore Savings Bonds, which are one of the most flexible ways to make a return on your cash, are looking attractive again.

The 10-year average yield for the latest issue of the bonds on February 1 is now 2.44 per cent. A saver would get 1.05 per cent in the first year, 1.52 per cent in the second, 1.93 per cent in the third, and so on until 3.57 per cent in the 10th. There is a limit of S$50,000 per bond issue and S$100,000 per individual.

These yields, especially on the short end, are among the highest ever since the bonds were introduced in the last quarter of 2015 as low-cost, risk-free investments for Singaporeans. In fact, the three-year average yield of the February issue - 1.5 per cent a year - is the best ever for these bonds.