What happened?
Since the Fed rate cut last week, many investors have been looking at ways to lock in interest rates over a longer time period.
Earlier, I shared why I am looking at the latest issuance of the Singapore Savings Bonds (SSB) to earn a higher yield before interest rates fall further.
The current issuance of the SSB offers a 10-year average interest rate of 2.77%.
While this is lower than the average interest rate of 3.10% in the previous SSB, it may still be worthwhile applying if interest rates were to continue falling sharply.
As such, I decided to take a look at the interest rate projection for the next SSB to decide if I should apply now.
Should you apply for SSB now or wait for the next one?
#1 – Current SSB offers 10-year average interest rate of 2.77%
The current issuance of the SSB offers a decent interest rate.
If you hold on to the SSB for 1 year, you will receive an average return of 2.59%.
If you hold on to the SSB for 10 years, you will receive an average return of 2.77% per year.
The 10-year average return declined from 3.10% to 2.77% since the previous SSB offering.
It is, however, still higher than the average interest rate offered by the SSB historically.
