The December maturity interest rate on Singapore savings bonds will be at a record high, figures from the Monetary Authority of Singapore show.
The first year interest rate starts at 3.26 percent.
This increases every year and those who hold the bonds continuously for longer periods can earn higher profits.
Ten-year December Singapore Savings Bonds to maturity are likely to earn interest of up to 3.47 per cent.
For example, if a person is allotted December Singapore Savings Bonds worth 10,000 shillings and wants to withdraw the savings after one year, he will earn 326 shillings in interest.
At the same time, if you hold the bonds for ten years till maturity, you will get a profit of 3,486 rupees.
The bond’s December tranche, which had a first-year yield of 3.08 percent and a 10-year average yield of 3.21 percent, will outperform November.
Meanwhile, the government has increased the amount of bonds to be issued in December from one hundred million shillings to a total of one billion shillings as Singapore’s savings banks have received more attention.
Singapore Savings Banks are issued on a ten-year basis.
But investors can exit the scheme anytime before ten years. There is no penalty for this.
Investors will get interest along with the principal. Applications for the month of December started at 6 pm yesterday.
Applications must be submitted by November 25. After 3.00pm on 28th November, Singapore Savings Breaks will be allocated.
Singapore Savings Banks will be available to successful applicants on 1st December.