Opening Hours

Mon - Fri: 7AM - 7PM

“Rising inflation has not only pushed up the cost of living, but cash held in low-interest bank accounts has effectively lost its value over time.” Wee adds.

make more money work

Besides SSB, what other low-risk investment vehicles or alternative cash instruments can I consider to better utilize my surplus funds? Here are some Lorna Tan, Head of Financial Planning Literacy at DBS Recommendation:

Short-term government bonds: A T-bill is a short-term tradable Singapore Government Securities (SGS), available for six-month or one-year terms. T-bills do not pay interest unlike SSB and SGS bonds. Instead, they are issued at a discount to face value. At maturity, you receive the full face value.

If you can save a year’s worth of money, you can consider investing in 1-year government bonds. Since the duration is long, the risk is set high, so the yield is higher than 6 months.

SGS bonds: These are long-term bonds ranging from 2 to 50 years. You can receive regular interest on your investment every six months from the month of issuance.

For example, if you buy $10,000 worth of a 50-year SGS bond at a coupon rate of 3%, you will receive two payments of $150 each year until the bond matures.

The minimum investment for T-bill and SGS bonds is $1,000.

Time deposit: Banks in Singapore have aggressively increased fixed deposit rates in parallel with rising borrowing rates. Currently, interest rates on fixed deposits offered by local banks hover around 3% per annum for a 12-month term. says Tan.

How it works is simple. If you make a lump sum deposit over a specified period, you will receive a fixed amount of interest on a regular basis. SSBs, T-bills and fixed deposits: how to maximize your savings with low-risk tools

Recommended Articles