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Mar 30, 2015

Singapore Savings Bond Rates

Singapore Savings Bond Rates

Welcome to Singapore Savings Account Rates blogspot dot com where our team will share the best, the latest and the most up-to-date 2015 Singapore Savings Bond Rates in today's post.

Our team at Singapore Savings Account Rates works hard to raise your earned interest income from investing in Singapore Savings Bond Rates in 2015.

Here is some preliminary information on Singapore Savings Bond Rates according to Monetary Authority of Singapore (MAS).

Singapore Savings Bond Rates:

Singapore Savings Bond rates interest is paid every 6 months.

At issuance, Singapore savings bond rates are fixed based on the prevailing SGS yields and locked in for each issue.

If you hold your Singapore Savings Bond for the full 10-year term, the average Singapore savings bond rates interest per year on your investment will match the return if you had invested in a 10-year SGS at the point of your investment.

In the last 10 years, the 10-year SGS yield has been between 2% to 3% most of the time.

If you decide to redeem your Singapore Savings Bond early, the average Singapore savings bond rates interest per year will be lower than the 10-year SGS yield.

For example, if you redeem Singapore Savings Bond after 2 years, the average Singapore savings bond rates interest per year on your investment will match the return if you had invested in a 2-year SGS.

The Singapore savings bond rates schedule for each Savings Bond issue will be announced before applications open.

Illustration Of Singapore Savings Bond Rates Calculation:

In the first year, you will earn interest based on the 1-year SGS yield at the point you bought the bond (for example = 0.9% p.a.).

In the second year, you will earn an interest (1.5% p.a.) higher than the 2-year SGS yield (1.2% p.a.), so that on average over the two years you would have received the 2-year SGS yield.

In the tenth year, the Savings Bond will pay an interest of 3.3% p.a..

The total return or average interest on your investment (2.4% p.a.) will match what you would have received had you bought a 10-year SGS at the time of your investment.

At any time during this 10-year period, you can choose to redeem the bond with no penalty and receive your principal ($1,000) with accrued interest.

If you hold the bond for the full 10 years, you will get your principal back together with the final 6-monthly interest payment.

Singapore Savings Bond rates quoted on Singapore savings accounts for 2015 are shared with you for personal use only. Always double confirm savings account interest rates with the respective banks before you invest your money.

Singapore Savings Bond rates are subject to change without prior notice at discretion of the bank or finance company in 2015. You need to assess the suitability of these financial products for your personal financial portfolio.

Thanks for reading Singapore Savings Account Rates, to stay in touch with the latest, the best and the highest savings account interest rates updates in Singapore.

The Team

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