Feb 2019 SSB rates dropped as compared to 2018

I have been placing my mum's money into SSB monthly since she can earn a better interest rate as compared to placing her money in the bank.




I am trying to have her put in a fixed amount each month into SSB so that she can get a small amount of money every month which is a small supplement for her.

This can also help her save more since she is still working right now and the small supplement can help her a bit if she were to retire like maybe to pay some bills.

Feb 2019 Interest rate

When we compare Feb 2019 with Jan 2019 interest rate, we can see a drop in interest rate and when you compare Feb 2019 with Feb 2018, the interest rate is lower in Feb 2019.

Feb 2018 Interest Rate

My mum loves the idea of SSB since I introduced it to her in mid of 2018.

For her, saving is a difficult task as her money is usually spent on us (her children) or travel or shopping.

Forced savings have always been a thing that helps her save so she has been putting her money in savings plans by insurance companies.




However the thing is that there are lock-in periods which she is kinda uncomfortable right now as she is about to retire soon.

SSB helps her to save as it keeps her money away from her but is also available when she needs it.

I am also glad that she is comfortable with it.




Even though the interest rate is not amazing but at least it is something to get started with!

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SSB VS STI ETF: what to invest in over a period of 5 years and which is better?

My brother recently asked me when he goes overseas to study should he put his money (roughly around a very low 5 figure) which he have saved up from his jobs and NS into Singapore Savings Bonds (SSB) or the STI ETF. This is because he would receive allowance for his time overseas so he would not use the SGD that he has been saving up.




I told him the advantages and disadvantages of both and told him that he should think about it and maybe read up more but I could see that he was leaning more towards SSB as he knew that he would not be actively looking at the prices of the STI ETF and that he was also unsure if the market conditions would be good when he ends his studies and get back to work. Of course, I told him that he would also receive some dividends from STI ETF and that it would offer him a better amount than SSB however his capital is not guaranteed by the Singapore government and he does not need to worry that after his studies, the amount would have any fluctuations. He mentioned too that the interest he would earn from the bonds is lower than he expected since his capital is low.




Right now, he is in a dilemma but is leaning towards SSB. But I am also thinking of maybe putting 40% into STI ETF and 60% into SSB. If you do have any suggestions or feedback, do comment and let me know:)