The lure of Feb 2018 Singapore Savings Bond

I am always on the look out for the best place to park my money. This is one of ways I accumulated $100k cash savings before 28. 

So when I came across the Feb 2018 Savings Bond, my eye popped. The SSB is not new to me. I've subscribed it twice - one in Oct 2015 (the first SSB), and the next in May 2017 - at $5k each. The interest rates are pasted below for reference:

Oct 2015:

May 2017:

Both bonds gives me decent interest rate. However, the con is to hold it out for 10 years before I receive an effective interest of above 2%.

Imagine my delight when I realised that the Feb 2018 SSB gives me 1.55% just after 1 year. That beats any fixed deposits out there. Furthermore, I can redeem my Savings Bonds in any month before the bond matures, with no penalty for exiting early! 

Year from issue date	1	2	3	4	5	6	7	8	9	10
Interest, %	1.55	1.59	1.67	1.77	1.91	2.07	2.26	2.44	2.61	2.75
Average return per year, %*	1.55	1.57	1.60	1.64	1.69	1.75	1.82	1.89	1.97	2.04

It's a no-brainer for me to put my remaining money here for it to work harder. With $30k+ cash lying in CIMB Fastsaver, I reckon I should pump $10k into Feb's bond to milk an extra 0.55% interest :) Just note the $2 transaction fee when you apply!

For more details, click here. 

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