Singapore Savings Bonds: 8 things you should know

Gigo88 said:

This should be a good place to park your spare cash.

Interest rate for 1st year is already 0.9%, better than most deposit accounts. And if you keep it longer than 1 year, u will get 1.5% for 2nd year.

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Ok, let's consider quantum up to 100K

Based on the step-up structure, it is not guaranteed that it carries 1.5%pa for the first 24-months. Let's wait for the actual rates for for per-annum basis when launched.

Today, if you step into Maybank Singapore, they will give you 1.45%pa for the first 12-months (fixed deposits), for $50K.

Gigo88 said:

$33 (or 3.3%) is only for yr 10. Ave interest rate is 2.4% which means u will get total of $240 over 10 years for every $1000 invested.

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Correct. now let's discuss for those with a little more bullets to spare.

Let's say you can really wait for ten years, you can consider PROTELINDO 3.25% bond which gives you 3.0-3.25% pa based on current bond price and it is guaranteed by a Asian Development's Bank's "Credit Guarantee and Investment Facility (CGIF)".

Isn't this safer as it is like asean, china and korea jointly guarantee to pay you within 1-2 months in the event that this bond defaults. This bond costs $250000++ for each lot.

So if you have a little more money (eg 250K), you can easily find safer and better yielding bonds in the market.

How to buy that PROTELIND?

banker called me uob is going to launch a new structure ddeposit with 5 years 11 month locked. Interest rate first 5 year 2%. The next 11 month will be in the range of 0-3% depend on market performance.

Worth it?

GG789 said:

How to buy that PROTELIND?

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Please ask your bank RM or just walk into any branch. It is called Protelindo 3.25%. The latest price, including all commissions should not exceed 100.5 (meaning you should not pay more than $251250 for the $250000 bond). The estimated price excludes all accrued interests*


* accrued interests mean the underlying accumulated interests before the next interest pay-out date. If you buy today, the accrued interests is about $3600++.
In total, you shouldn't pay more than $254850 if you buy today.
You get back $250000 upon maturity.


I am not asking you to buy, i am just using it as a comparison against yields and risks in my earlier post.

History: https://www.dbs.com/newsroom/DBS_completes_first_public_bond_issue_guaranteed_by_the_CGIF

GG789 said:

banker called me uob is going to launch a new structure ddeposit with 5 years 11 month locked. Interest rate first 5 year 2%. The next 11 month will be in the range of 0-3% depend on market performance.

Worth it?

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2-years fixed deposit from Maybank is 1.85%pa today. so Fixed deposit better than structured deposit right?

Lock-in 2Years vs 5 Years and the difference is only 0.15%pa

Comparison:

Maturity:
Fixed Deposits: Assumptions Below Based on 2 Years
SSB: Up to 10 Years
Bonds: Assumption based on Protelindo 3.25%, 9.5 Years till maturity

Quantum:
Fixed Deposits: Assumed to be $50K
SSB: In denominations of $500
Protelindo 3.25% Bonds: Approximately $250K per unit.

Safety Net:
Fixed Deposit: Up to $50K by SDIC (Singapore Deposit Insurance Corp)
SSB: Singapore Govt
Protelindo 3.25% Bonds: The Credit Guarantee and Investment Facility from about 13 countries

Current Yield:
Fixed Deposit: 1.85%pa + Free Gift
SSB: Step-up Structure, likely correlated to SGS yields (please wait for pricing announcement)
Protelindo 3.25% Bonds: About 3 to 3.2% per annum after considering commission and current price.

Please note that I am not asking anyone to buy Protelindo bonds (i am not vested). It is just used as an illustration.

Gigo88 said:

Yes. 50k investment will yield 12k return over 10 years. No compound interest. Interest should be paid twice a year, like the current SGS.

The interest rates shown is just an illustration. Do check the actual interest rates on offer during launch.

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50k for 10years and you only yield 12k , rather invest on your own biz . By the way inflation is something to think .

Tuayapeh said:

By the way inflation is something to think .

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That's why HK is more sincere to offer inflation-linked bonds a year ago.
http://www.bloomberg.com/news/artic...k-10-billion-inflation-linked-bonds-next-week

maybank time deposit

http://info.maybank2u.com.sg/personal/deposits-banking/time-deposits/singapore-dollar.aspx

Singapore Dollar Time Deposit

Earn higher interest; access overdraft facilities secured against your deposit; renew your deposit placements automatically upon maturity

Key info

Among the highest time deposit interest rates in Singapore
Minimum deposit of S$1,000 (for a tenure of at least 2 months)
Placement periods from 1 to 36 months
Raise your savings to 1.80% p.a.

Enjoy our attractive Singapore Dollar Time Deposit promotional rates and receive the interest amount the next day! What’s more deposit a minimum of S$150,000 and you will receive a free Corningware set.

Earn higher interest by putting your money in a Singapore Dollar Time Deposit. With the range of placement periods from 1 to 36 months, you have the option of picking the most suitable tenure to maximise the potential of your savings.

Benefits

Access overdraft facilities secured against your deposit
Auto-renewal of deposit upon maturity
Easy monitoring of your deposit via PhoneBanking (Dial-Link) and Online Banking
Interest rate

Among the highest time deposit interest rates in Singapore

Premature withdrawal of less than 3 months – No interest will be paid
Premature withdrawal of more than 3 months – The interest is pro-rated based on the number of days the Time Deposit is placed, calculated on the lowest tier of the prevailing Savings Account rate at time of withdrawal or the contracted rate, whichever is lower.
Minimum initial deposit

S$1,000 for tenures from 2 to 36 months
S$10,000 for a 1-month tenure
S$1,000,000 for a 1-week tenure, applicable only to corporate accounts
Who can apply

Singapore Citizens, Singapore Permanent Residents, Foreigners
At least 16 years of age
Required documents

Singapore Citizens and Singapore Permanent Residents – Singapore NRIC
Foreigners
- Passport and Employment Pass; and
- An original copy of the latest bank statement, utility or telecommunication bill with
your residential address indicated
Fees and charges

Service fees and charges may apply
If you are a Maybank Account holder with online access, you can login to Online Banking and place your time deposit online immediately. Alternatively, visit any of our
22 Branches in Singapore today.

Terms and conditions (PDF)

Deposit Insurance Scheme

Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$50,000 in aggregate per depositor per Scheme member by law. Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Minimum Sum Scheme are aggregated and separately insured up to S$50,000 for each depositor per Scheme member. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

This one huh?

https://sslsecure.maybank.com.sg/cgi-bin/mbs/JSPscripts/mbb_rates/deposit_rate.jsp#sgtd

Singapore Dollar Time Deposit (%p.a.)
Month(s) S$ 1,000
to
S$ 50,000 S$ 50,001
to
S$ 99,999 S$ 100,000
to
S$ 249,999 S$ 250,000
to
S$ 999,999
1* 0.2000 0.2000 0.2000 0.2000
2 0.3000 0.3000 0.3000 0.3000
3 0.3500 0.3500 0.3500 0.3500
6 0.4000 0.4000 0.4500 0.5000
9 0.5500 0.5500 0.6000 0.6000
12 0.7000 0.7000 0.7000 0.7500
18 0.9000 0.9000 0.9000 0.9500
24 1.0000 1.0000 1.0000 1.1000
36 1.2000 1.2000 1.2000 1.2500
* Minimum deposit for 1 month is S$10,000.

malaysia fixed deposit rate

http://malaysia.deposits.org/


Bank Branch Founded Best Rate Type Term Ownership
Bank Rakyat 144 1954 4.50% Deposits 5 year Local
Bank Muamalat Malaysia 59 1999 3.90% Deposits 5 year Local
Bank Simpanan Nasional Over 300 1888 3.75% Deposits 5 year N/A
Affin Bank Berhad 103 2001 3.70% Deposits 1 year Local
Bank Islam 133 1983 3.70% Deposits 5 year Local
Maybank 1750 1960 3.60% Deposits 5 year Local
RHB 194 1997 3.60% Deposits 5 year Local
CIMB Bank 1,062 1974 3.60% Deposits 5 year Local
CIMB Islamic Malaysia 2003 3.60% Deposits 5 year Foreign
AmBank 187 1975 3.50% Deposits 5 year Local
Public Islamic Bank 259 2008 3.40% Deposits 1 year Local
Public Bank 255 1966 3.35% Deposits 1 year Local
Scotiabank Malaysia 6 1973 3.35% Deposits 1 year Foreign
HSBC Malaysia 68 1994 3.30% Deposits 1 year Foreign
Hong Leong Bank 329 1905 3.30% Deposits 1 year Local
Standard Chartered Bank Malaysia 30 1984 3.25% Deposits 1 year Foreign
Citibank Malaysia 11 1959 3.20% Deposits 1 year Foreign
HSBC Amanah Malaysia 1884 N/A N/A N/A Foreign
UOB Malaysia 45 1993 N/A N/A N/A Foreign
OCBC Malaysia 34 1932 N/A N/A N/A Foreign
AmIslamic Bank 186 N/A N/A N/A Local
Show Less

GG789 said:

maybank time deposit

http://info.maybank2u.com.sg/personal/deposits-banking/time-deposits/singapore-dollar.aspx

This one huh?

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They are giving corning ware for 2 years 1.8% Fixed Deposits hahaha, but Fraser Centrepoint just undercut them.
7YR retail bond for 3.65%pa, minimum amount $2000 nia

Frasers Centrepoint offers S$200 million seven-year bonds at 3.65%
http://www.todayonline.com/singapore/frasers-centrepoint-offers-s200m-seven-year-bonds-365


Just sharing this news, caveat emptor, this is not a buy recommendation.
http://sammyboy.com/showthread.php?181997-Singapore-Bonds&p=2189371#post2189371

FCL bond maximum can apply how much?

GG789 said:

FCL bond maximum can apply how much?

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S$200million

Runifyouhaveto said:

S$200million

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ok, malaysia FD how do u think?

GG789 said:

ok, malaysia FD how do u think?

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No point, unless u got malaysian wife.

Runifyouhaveto said:

No point, unless u got malaysian wife.

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yes, my wife is malaysian. intend to ask her to open a FD account there.
public bank offer 4.18%. promotion period till end of june

what i dislike is currency risk. i predict myr will goes lower in the next 12 month.

https://www.pbebank.com/Personal-Banking/Promo/Promo/PB-FD-XTRA-Campaign.aspx

GG789 said:

yes, my wife is malaysian. intend to ask her to open a FD account there.
public bank offer 4.18%. promotion period till end of june

what i dislike is currency risk. i predict myr will goes lower in the next 12 month.

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I am not familiar with malaysia FD or bonds but
Public bank is very very good.
4.18% for one year? Then it is also very good because UOB Malaysia issued ringgit bonds last week for 5 to 10 years duration, giving 4.65%.
So 4.18% for one year is very fair.


currency risk is not an issue because your wife will help you use up the money. If ringgit super depreciate against SGD = Malaysia in recession, then u switch to malaysia properties after maturity. The possibilities are endless.

Gigo88 said:

This should be a good place to park your spare cash.

Interest rate for 1st year is already 0.9%, better than most deposit accounts. And if you keep it longer than 1 year, u will get 1.5% for 2nd year.

You will have the flexibility to withdraw money anytime, and guranteed to redeem at par value + interest accrued.

You will need to look at the actual interest rates of these bonds when they are launched, and compare to bank deposit rates such as CIMB starsaver or SCB E-saver etc.

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Seesh. 0.9% and 1.5% is good rate?????? Why does everyone compare interest rates to the shitty FD rates in our local banks?