like this, is it SSB better?
SSB better than Fixed Deposits?
Assuming SSB rates are close to SGS (Singapore Govt Bond) yields AND depending on Maturity, if you are looking at less than 24 months, current fixed deposits are better because it SSB is has a step-up structure.
Is SSB better than FCT 3.65%?
Risk
FCL is definitely more risky than the proposed SSB. FCL has already issued massive amount of perpetual bonds and bonds under the new owner's leadership to embark on a buying spree in Australia
Yields - assuming you hold for 7 years
Assuming you hold the SSB for 7 years like the FCL 3.65% bonds. I can only assume and guess that the proposed SSB are priced closely with our SGS (Singapore Govt Bonds)
Current SGS 7-yr yields is about 2.4%
Current SGD 7-years Interest Rates Swaps (IRS) is about 2.5%
So even with a small premium, SSB is unlikely to match the 3.65% offered by FCL. Besides SSB is a step-up structure, it means you get lower interests in the earlier years, so even if interest rates increases on a modest pace, the total yields from the 7 years are still unlikely to surpass FCL. SSB will only out perform the FCL 3.65% if SIBOR or IRS experienced a massive surge in the next 7-years.
Yields - assuming you give up FCL before maturity
FCL risks trading below par value if interest rates experienced a massive spike and you don't hold to final maturity/redemption. In this case, you might face a small capital loss. When interest rates spikes up, you still get to surrender your SSB and get back your principle sum at par (no capital loss). If interest rates experiences a minor upside, FCL is still likely to outperform SSB.