Interest Rate for March SSB = 1.95% (Short Term)
Rationale behind applying for it and why it took so long before I decided that I should apply.
The situation that I am in is that I will be going to university in about approximately 18 months. I am planning to use the cash that I have on hand for my university fees. I estimate the cost to be at least 30,000 Sgd. Thus the time frame that I have is 18 months and the investment vehicle that I choose has to be non-volatile as I want to protect my principal amount. This would thus eliminate my options of investing in the stock market.
Fixed Deposit vs Singapore Saving Bonds.
Comparing the options that I have. Singapore Saving Bond is currently the better option as the best fixed deposit interest rate right now is CIMB 's 1.9% where I have to commit to 12 months as compared to SSB's 1.95% where it would be more stable and the withdrawal penalty is lower in the event that there is a better interest rate that is stable that will be given out in the future.
Honestly, I should have done this way earlier, but better late than never I guess. If there are better options out there please feel free to recommend it to me and I will read up on it :)