facebookI'm currently in my second year of university and I have around $10k that my parents are willing to loan me as seed money. Read up and SSB seems very tempting and fool-proof. Would you recommend this? - Seedly

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Anonymous

26 Jun 2021

General Investing

I'm currently in my second year of university and I have around $10k that my parents are willing to loan me as seed money. Read up and SSB seems very tempting and fool-proof. Would you recommend this?

I don't know much about investing but I want to put this money somewhere at least. I read up a bit and SSB seems like a good option but as I'm not very familiar with investing, I'm not sure if I should just put the money in a bank instead. I also wanted to know if SSB interest rates change every month and if this month's rates are considered good. I would ideally want to put my money somewhere and forget about it till perhaps 1-2 years after graduation.

Discussion (8)

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Victor

26 Jun 2021

Financial Service Consultant at AIA

Cash syfe will be good

Hmm. So your parents are loaning you seed money. Seed money for what? To start your own company? In which case you need some measure of liquidity?

To learn about investing? On which case they may have some expectations on how it is used? (SSB barely counts as investing I think. A high interest savings account might well net you just as much...)

To grow your future retirement money while keeping capital safe? Then you might consider parking it in CPF SA for 4-5% risk free. Except you can't touch it until you hit 55. Even CPF OA (2.5-3.5%)will net you a higher return than SSB. And you can use it for housing and possibly education fees I think.

So yeah. I think an important question to ask and clarify is, "what is the seed money for? Do your parents have any expectations about it?"

Just Being Ernest

28 Nov 2019

Content Creator at www.youtube.com/c/JustBeingErnest

I will recommend putting in a small percentage into SSB.

Use your age as reference, if you are 22 then put 22% of your money into SSB

But you will need to take note whether is the returns from SSB is the highest among similar risk of investment products. If fixed deposits give higher returns than SSB, then it will be better to put into fixed deposits instead.

Next regarding the remaining amount assuming that you have insurance settled, it will be good to learn how investment works and the different investments available. Learn how each investment works from experienced gurus and the skills needed to profit from investment. Putting money into investment without knowing how to do it will be risky in the long term.

I write cool stuff about personal finance and money-saving hacks here.

Billy

09 Nov 2019

Development & Acquisitions Manager at Real Estate Private Equity

Hey there!

It's great that you have the mentality of wanting to grow your money rather than placing it in the bank and watching it's value decrease due to inflation.
SSB is indeed offers a safe avenue to grow one's wealth. However, looking at the rates published for Nov'19. One can see that even if you were to hold the bonds for 10 years, the average interest rates doesn't even hit 2%.
I recently placed my money into Stanchart's Jumpstart savings account. It offers 2% interest that is paid on a monthly basis, hence your compounded interest will equate to an interest rate higher than that of 2%.
Some T&C's to note of:

1) Only valid for first $20,000

2) You need to open the account before 27 years of age.

3) There isn't any information on what the interest rate will be after you cross 27. However, it will still remain constant at 27 should there be no change in terms.
You can find out more about the Jumpstart account here

Kelly Trinh

08 Nov 2019

Backoffice technical at financial services firm

I know you specifically mentioned investments, but I would like a wider view if the objective if to ...

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