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I'm exploring this option after maximizing SA cash top up ($7k) and SRS ($15.3k).
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The interest rate is lower than high interest savings account/ SSB and the money get locked up for 1 year.
I would go for high interest saving accounts or Singapore savings bond (1.93% for first year, average return of 2.16% pa if you keep till end of the 10th year, ref to last month bond issuance)
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Hiya, I think it is pretty decent if you are risk averse.
Comparing to the July edition SSB of 1.93% for first year, if you withdraw it after 12 months, the interest you get is $193 for a purchase of $10000. Subtracting away $4 for application and early withdrawal fee, you get $189 which is an effective interest of 1.89% (gets closer to 1.93% if you make bigger deposits). FD is comparable.
Will recommend the FD if is easier for you to apply + you are making a small deposit.
(CIMB has 12 months @ 1.85%)
If you don't mind holding the $$ in SSB for longer or you are making a bigger deposit, will recommend SSB.