Date: March 30, 2015
Many Singaporeans are keeping their savings in fixed deposits. Whilst it gives them peace of mind as their principle is guaranteed, it gives them very low returns. In addition, the local banks have high cash balances and, therefore, have little incentive to raise interest rates to attract additional deposits thus giving low returns for monies placed in deposits with banks. Correspondingly, many Singaporeans are also afraid to invest their savings as they have either heard or had bad experiences investing, either in the stock market or in other alternative investments with risk.
The Singapore Savings Bonds provide Singaporeans with a government guaranteed savings product that has a return that is above the inflation rate which is also capital guaranteed. In addition, the indicative rates are also above the current fixed deposit rates offered by the local banks. SIAS recommends to Singapore citizens to consider placing their savings in the Singapore Savings Bonds without fear as it has no risk and return above the inflation rate.
David Gerald
President & CEO
Securities Investors Association (Singapore)
