Savings Account Optimization October 2022

 

Rates are now above 3% pa for both T-bill and SSB. It becomes pointless to continue to do the RHB high yield musical chair, because that gives an avg yield of only around 3% pa. Do remember to leave 1ct in your RHB high yield to get the 4.2% pa for the month of September.

Can we treat Singapore Saving Bond like a savings account? Yes, but do note that this is of inferior liquidity compared to a normal savings account, ie you can only redeem your bond at the beginning of every month. In exchange for this inferiority, you will get a higher interest rate with a yearly step up for 10 years.

So assuming the Fed starts to cut rates down back to sub 2% next year, Your SSB rate will continue to be above 3% and increasing every year till the end of 10 years. This is also the advantage of SSB as compared to the shorter term Tbill. 

Tbill is a zero coupon bond which means it front loads its full 6 months interest to you on allocation. This is one advantage of Tbill as you are able to immediately receive your full interest and start to compound it into other avenues.

Last month I have gotten S$180.18 from Google Adsense, thanks for the continued support. 

The Savings Account rates from banks are unable to keep up with sg Tbills but we are seeing rapid improvement. 

Stanchart Esaver is having a promotion now from 1st Oct 2022 to 30th Nov 2022. Cap at 1million dollars, any fresh funds that is transferred in gets you a 2% pa interest rate.

So my new ranking now is:

For iliquid funds(6 months lock up): Tbill gives 3.32% pa

For semi liquid funds(1 month lock up): Singapore Savings Bond gives 3.08% for first year

For liquid funds(no lock up): Stanchart Esaver or Singlife(max 10k) both gives 2% pa