Singapore Savings Bond – application opens in September

The much-awaited Singapore Savings Bond will be open for application in September 2015. Investors looking for an opportunity to grab these bonds can submit their applications for the first issue on September 1st up till September 25th. The bonds will be issued at S$500 up to S$50,000 which have a term of 10 years. Investors can hold up to S$100,000 of bonds. The minimum threshold of S$500 makes it available to the everyday man and not just the elite.

Application process for Singapore Savings Bond
In order to apply for these bonds, you need to have an account at any of the participating banks. The banks are OCBC, DBS, POSB, and United Overseas Bank.
You also need an individual central depository account (CDP).
Applications can be done via ATMs. POSB or DBS customers can also apply via online banking.
The transaction fee is S$2 per application and is non-refundable.
Applicants who are successful will receive the bonds into their CDP on 1st October.
The same process also applies for redemption of the bonds.

The Monetary Authority of Singapore (MAS) has stated that there is no need to rush for the first issue as the bonds will issued every month for at least five years. The Government has plans to issue bonds of S$2billion to S$4billion this year.

The Singapore Savings bonds will give investors flexibility with the tenures and amounts they can deposit. It’s also a low-risk option as your principal amount is guaranteed by the Government. Investors can redeem the bonds in part or full before the maturity date. No penalty fees is levied for premature closure. The return on these bonds at the time of maturity will be the same as a 10-year Singapore Government Securities yield. This is usually around 2% and 3% which is much higher than a fixed deposit. Interest will be paid half-yearly and on a step-up basis. Step-up basis means the value of the bond will be the higher market value at the time of maturity and not the value at which it was originally purchased. In the case of conventional SGS bonds and corporate bonds, the prices of your bond in the case of early redemption is determined by the financial market conditions and the market interest rate movements. These measures are directed to encourage investors to keep the bonds for 10-year terms. But the bonds are also easily redeemable for cash without any penalties, and moreover, you will get your full principal back, making it an attractive investment. In the event of an emergency, the savings bonds will serve as a contingency fund.

MAS will publish all details regarding the first issue of Savings Bonds in October on their website on September 1st after 4:30 p.m. Details such as the interest rate schedule will be available. The same will be published in newspapers on September 2nd. The Savings Bond website will help investors track their applications and depict their investment returns over the period of the bond. There is also a Savings bond hotline available to investors and applicants.


How To Get Better Fixed Deposit Interest Rate?

Fixed deposit schemes are very popular around the world as they help people to save money. There are numerous banks and financial institutions in Singapore that offer a variety of Fixed deposit schemes. These schemes are designed in such a manner that they can cater to the needs of all kinds of customers. In fact, a fixed deposit scheme can go a long way in helping people to manage their money. To reap the maximum benefits of such a scheme, it is important that you choose a deposit scheme that offers the best fixed deposit interest rate. If you do a little bit of research, it will not be very difficult to find such a time deposit scheme in Singapore.

Why should you open a fixed deposit account?

Money is perhaps the most important thing in our lives and although it is true that money can’t buy happiness, it is certainly needed to lead a comfortable life in today’s world. However, not a lot of people make more money than they require to meet their expenses and so they find it difficult to fulfil their financial needs or deal with uncertain financial situations. If you are someone who feels that you do not make enough money or if you understand how important it is to save money for the future, you should open a fixed deposit account. It will help you to save money and be prepared for financial uncertainties, along with helping you to grow your financial assets.


How to Get Better Fixed Deposit Interest rate?

In order to figure out how you can enjoy the best possible interest rate on your time deposit Singapore schemes, you need to first get a fair idea of how fixed deposit or time deposit schemes work. In Singapore and in most other countries, the fixed deposit schemes offer the customers to deposit a certain sum of money with the bank, for a fixed period of time. The banks specify the minimum amount that has to be deposited and the customers earn interest on the deposit amount. Thus, when the term of the deposit ends, they get back the deposit amount along with the interest earned in that period. Thus, it is beneficial to opt for a deposit scheme that comes with a higher interest rate.

The interest rate offered with the fixed deposit schemes depends on a variety of factors, which include the deposit amount, the term of the deposit and so on. If you deposit a higher amount for a longer period of time, you are more likely to be offered with a better interest rate. For example, if you deposit S$25,000 for a period of 10 months, you are most likely to earn interest at the rate of 1.50% per annum however, if you deposit the same amount for a period of 24 months (2 years), you are most likely to earn interest at the rate of 1.75% per annum. There are many banks that will also offer you with higher interest on time deposit, if the deposit amount is high. For example, you are most likely to earn a higher interest rate if you deposit S$40,000 instead of S$25,000.

Compare Fixed Deposit Schemes

An effective way of getting a better fixed deposit interest rate is to compare the deposit schemes available in Singapore so that you can choose the scheme that can offer you with the best value for your money. There are a few online portals where you can compare the various time deposit schemes available in the country. You can explore the features, interest rates, benefits and other details about these schemes and based on the same you will be able to opt for a fixed deposit scheme that will suit your needs the most.

Banks Offering Fixed Deposit Schemes in Singapore

There are numerous banks that offer fixed deposit schemes in the country and some these banks are listed below:
CIMB Bank,
HSBC Singapore,
Standard Chartered Singapore,
RHB Singapore,
POSB Bank,
DBS Bank,
OCBC Bank,
Citibank Singapore etc.

Some of these banks even offer deposit schemes in currencies other than Singapore Dollar and the minimum deposit required to open a fixed deposit scheme can be as low as S$1,000.