Singapore Savings Bond versus OCBC 360

Singapore Savings Bond is a new type of government bond that was launched by the Monetary Authority of Singapore in 2015. The bond is considered to be a safe and flexible product that allows Singaporeans to meet their savings and investment needs.

However, demand for Singapore Savings Bonds had been lacklustre in the initial years, presumably because products like OCBC 360, had been giving it a run for its money (literally). Nonetheless, recent developments had caused Singapore Savings Bond to be very attractive. And that led to a change in my view of this bond.

In my previous article on Astrea IV bonds, I shared that I am not ready for fixed income at this stage of my life yet. My stance has not changed. Basically, my family is looking at a safe financial product to store our emergency fund. Thus, we are looking at Singapore Savings Bond from the perspective of wealth protection, rather than wealth building.

In this article, I will share my insights on how Singapore Savings Bond can play a part in strengthening your wealth portfolio through passive income and how it fair in comparison to the popular OCBC 360 account.

Locked-in Interest rates

The first criteria for my family is safety when it comes to managing our emergency fund. Conventional government bonds fulfil this requirement but the yield is pretty low and the volatility of the interest rates would impact the bond price in the secondary market. In 2014, OCBC bank launched the OCBC 360 account which offers an incredible 3.05% (upon meeting certain criteria like salary credit, online payment and spending), we were sold.

Rated as one of the strongest banks in the world by Bloomberg in 2015, we are also convinced that our savings are safe with OCBC 360.

However, good things don’t last forever. Shortly after the launch, there were [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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