Asked by Anonymous
Asked on 02 Jul 2018
Anything better than ssb?
SSB is a good choice if you intend to keep for 10 years. Else, you can try fixed deposits. The FD rates are rising recently
I second the opinion provided by Gabriel Tham. SSB is a good SAVINGS instrument for the following reasons.
1) it provides the interest rate of a 10 year bond
2) behaves like a saving accounts (withdrawal without penalty)
3) $2 transaction cost allows for re-investment especially in an rising interest rate environment. This elimates any interest rate risk that you might encounter in the future. (for every $1,000 invested, it only takes a 0.4% increment in market interest rate to justify switching your old SSB with the newly issued SSB).
While i may not understand your goal of savings, here is my 2 cents based on your what you want. Savings at the end of the day only provides for a low level of return that at best helps consumers match up with inflation rate. Just like a farmer who would rather sell a chicken that doesn't lay eggs than to keep it, there is no incentive for consumers to hold on to cash that does not provide for positive inflation adjusted returns.
Most importantly, what are you looking to save for? Depending on your answer, just saving instruments alone might not be sufficient. You may want to look into it before fully committing to your current financial plan.
I'd subscribe to the POSB RSP and put the rest of my money into a good savings account, SSB, as well as fixed deposits!
Other than SSB, next safest alternatives would be fixed deposits, or high yielding saving accounts like CIMB Fastsaver or Citibank's Maxigain.
Unless you are prepared to stomach some risk, there's not really a lot of choices available. Do stay away from retail endowment/ILP/annuity products, not worth the investment and opportunity costs..
Though you already know SSB and more into safe deposit, with 1k/monthly for the next 10 years. That's 12k per year for 10 years. Total of 120k.
Instead of just the passive SSB but and leave it there, can consider buying in a manner similar to DCA but some variations, build a bond ladder.
to find out how it is done and also use the excel build by author to find out it works. It can be set to work like a divident investing machine instead of just a regular bond / savings account. You can reinvest the interest or consider it as your "monthly dividend" lol :)
07 Feb 2019
Putting it into SSB. You can also put it into FD during promotional periods like recently CIMB have promotion rates for their FD min placement of 10k though. Otherwise you can also consider CIMB fastsaver.
These are the safest options to stick with
Can consider index funds since you are doing a 10 year monthly dca. U are highly likely to come out ahead.
Singapore Saving Bond is the best option.
Consider ssb. You just need to have cdp account and commit minimal $500. Fee is $2 to purchase and $2 if early redeem. No need to pay $2 if you let it run for 10 years. Capital guaranteed too
Stay far far away from endowment plans the returns are too low and time frame too long.
I think the banking landscape changes from time to time and it is important to review the promotions, rates and move our money around accordingly.
If you enough cash go go for a Bond, else SSB might be a good choice.
If you're aged 44-45 and can save that much, the highest risk free interest would literally be your CPF.
With 1k a month for 10 years compounding, you'd definitely have your FHS and then some, so you'd have a ton of excess at the end of 10 years as sweet, sweet cash.
Otheriwse, there's really no reason not to go for an endowment if you plan to save that much. Illiquid savings are far higher yielding than liquid as a general rule, and endowments have been upgrading and performing. You can get endowments that don't require more than 5 years payment and yield anywhere between 2.5 to 3.9% net of fees quite comfortably.
If you'd like to consider that as an option, you can reach me at https://www.facebook.com/luke.ho.54.
If you're not convinced and want to see potential proof, you can also reach me there. O_O