Singapore Saving Bonds (SSB)
Asked on 28 May 2019
If you only want to put it into a place where your capital does not decrease, you can consider the following:
High Yield Savings Accounts
While not technically an investment, a high interest rate yielding savings account can give you a 2-3% p.a. interest rate. Additionally, if it's not conditional on minimum spending, it's very easy to manage since there isn’t much to do after opening your account.
Fully Secured Bonds
Fully Secured Bonds are another excellent low-risk investment option.
Certificate of Deposits
A Certificate of Deposit is also considered to be a pretty safe investment. When you invest in term CDs, the bank assures a guaranteed interest rate over a specific time period, or variable-rate CDs where the interest rate is tied to some type of index – like a stock market index.
This is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It
Slightly higher risk then the previous options mentioned, ETFs look to give you exposure to a basket of underlying assets, to create an index that mimics the market index or a market theme. The benefit is that they provide instant diversification. You could look at the various robo advisors to help automate the investing process for you.
Yo, SSB imo not doing very well now. it was better in the past. If you don't have time to monitor stocks, you can consider robo-advisors for a start. Should you need more info on robo-advisors, you can check out an episode on SeedlyTV here. Alternatively, you can also read more about the Temasek Astrea bond here.
There are various robo-advisors in SG namely Stashaway, Smartly, Autowealth, Endowus and MoneyOwl. You can find out more about each of these robo-advisors and see the reviews that they have. Hope this helps!
I don't thing SSB is advisable at the moment. However, there are plenty of safe ways to invest your money and have it grow. As you said that you do not have the time to monitor stocks, You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you go for a Robo-advisory platform. Robo-Advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.
You can read here for a better understanding.
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I hope this helps you make the right decision.
You can consider SSB, high interest saving accounts such as DBS multiplier, OCBC 360, UOB stash or endowments plans
You can try buying an endowment. Occasionally insurance companies will launch an endowment plan with high interest (e.g. 2.3% to 2.5%) but you'd need to lock it in for 3 to 5 years or longer. This is capital guaranteed so it will address your concern of losing capital.
If I woke up in your shoe, having $10K without any immediate use in the near future I would probably throw it to my StashAway account.
Since you're rather risk-averse, you could consider RSP-ing in an ETF. That way, you get to practice dollar cost averaging, and you need not monitor the prices of your investment as well. Dividend yield is about 3% a year, much more decent than putting it in the bank account
You didn't mention when you would need the 10k, only that you are risk adverse. Wonder if you have considered CPF SA for a guaranteed 4%pa. Of course, downside is that you don't get to touch it until you retire.
High yielding fixed deposit or savings accounts would be a good idea if you are risk adverse. Alternatively, you can explore robo advisories like stashaway and consider their low risk portfolios. Hope this helps.
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