Silver lining for savers and retirees as rates rise: More 3-in-1 options

VOLATILITY in stocks and bonds is set to continue as higher interest rates and inflation pose valuation challenges. But there is a silver lining for savers and retirees who aim for the 3-in-1 benefits of capital preservation, income and liquidity - all in a single asset.

The robust response for the most recent Singapore Savings Bond (SSB) issue reflects the keen appetite for 3-in-1 benefits. The Aug 1 issuance received applications worth a whopping S$2.4 billion, the highest since SSB issuance began in 2015. The 10-year average return rate of 3 per cent was also the highest on record.

Meanwhile, fixed deposit rates are also crossing the 2 per cent threshold, albeit on a promotional basis.