Best Low Risk Cash Investments in Singapore

In the realm of stock investing, there are different types of strategies adopted by investors. Dollar-cost averaging technique for a broad-based index fund is a popular strategy adopted by many. However, there are also a handful of investors that prefer to invest in individual stocks. As a result, timing their investment for these investors can be just as crucial as identifying the right stock.

The COVID-19, Asian Financial Crisis crashes are prime illustrations. These significant market crashes offered opportunities for investors to purchase high-quality stocks at a discount. However, this will require investors to be saving and keep their money on the sidelines. On most occasions, investors will leave their savings idle in their bank account and this is earning very less interest.

Hence, in order to maximize your returns while waiting for a good opportunity to invest. The US Fed has increased interest rates multiple times during the past year.

As a result, many products are offering better interest rates for investors.

Here are a few of Singapore’s safest, lowest-risk investments where one may deposit their cash into!

1. Bank Savings Accounts

Below is an overview of Singapore’s main savings accounts for $10,000-$50,000 in cash savings. They are currently offering interest rates from 0.01% to 3.60% annually. Users will need to use the bank’s credit cards and investment products in order to be eligible for the highest tier of interest rates.

Source: MoneySmart (September 2022)

2. Fixed Deposit

With the recent increases in interest rates, Fixed Deposits are a fantastic option for risk-averse investors.

Since you can withdraw FDs at any time, they are also quite liquid. However, you will be required to pay some hefty early withdrawal penalties that range from 0.5% to 1.0% every year of your invested funds. Below is an overview of Singapore’s fixed deposit rates across different banks for less than $50,000.

Source: MoneySmart (September 2022)

3. Singapore Savings Bond (SSB)

Over the past year, SSBs have grown in popularity among many Singaporeans as interest rates increased. Some reasons for its popularity are due to extremely minimal risk involved and investors can lock in up to a decade. However, one of the drawbacks is that withdrawals can take a while (up to a month).

For the month of October 2022:

For more information, you can refer to MAS SSBs.

4. Singapore Government Securities (SGS) Bonds

These are bonds issued by Singapore Government Securities (SGS) which have maturities of 2 to 30 years. The interest rate is fixed at about ~3%. SGS bonds can be divided into three categories: SGS (Market Development), SGS (Infrastructure), and Green SGS (Infrastructure).

For more information, you can refer to MAS SGS Bonds.

5. Singapore Treasury Bills (T-bills)

Singapore Treasury Bills (T-bills) are short-term Singapore Government Securities (SGS) that are issued at a discount. They are usually issued for a six months and one year time period. At maturity, investors get their entire face value back.

For more information, you can refer to MAS Treasury Bills.

6. Insurance Savings Plans

Short-term insurance savings plans have been introduced by several insurers as an alternative to low-interest savings accounts and fixed deposits. On the other hand, medium to long-term insurance savings plans might be a tool to assist some in saving money for major milestones.

Source: SingSaver (September 2022)

Source: SingSaver (September 2022)

7. Cash Management Accounts – Moomoo Cash Plus

Cash Management Accounts like Moomoo Cash Plus generate a potentially higher return than fixed deposits. Furthermore, it offers the flexibility to redeem your money anytime with no penalty. Under Moomoo Cash Plus, two money market funds are accessible: Fullerton SGD Cash Fund and CSOP USD Money Market Fund.

How to purchase with Moomoo Cash Plus

1. Select the Discover Tab and Click on Funds
2. Select the Cash Plus Fund and you will be brought to the Fullerton SGD Cash Fund’s Detailed Quotes page

3. Tap onto the Subscribe button

While Stock Lasts! Moomoo SG is giving S$2* cashback every day for 30 days if you make a one-time deposit of just S$100 in Cash Plus. That is a total of S$60 in total cashback! Subscription to Moomoo Cash Plus is free too.

6 Steps to signup and qualify for the Welcome Reward by Moomoo SG

1. Register for a MooMoo SG Universal Account and download the MooMoo App on your phone
2. Open an account (Singpass supported for quick approval) :
3. Two different ways to get free stock

Option 1: Complete a net deposit of $100 to get 4 chances to draw a stock between $3 – $2000. Ensure that you maintain an average asset balance greater than $100 for 60 days

Option 2: Complete a net deposit of $2000 to get 10 chances to draw a stock between $3 – $2000. Ensure that you maintain an average asset balance greater than $2000 for 60 days

4. After signing up for the MooMoo SG Universal Account using Learn To Invest link, email us with a screenshot of your MooMoo SG Universal Account and we send you an exclusive portfolio watchlist

Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalised investment advice. Readers should always do their own due diligence and consider their financial goals before investing in any stock. This advertisement is not reviewed by the Monetary Authority of Singapore.