These days, it’s becoming increasingly challenging to earn a solid interest rate on our savings. Just this week, the yield on the 6-month Singapore Treasury bill dipped to 2.56%—the lowest we’ve seen since June 2022. Fixed deposit rates are also on a downward trend. Earlier this week, Chocolate Finance announced a suspension of instant fund withdrawals due to “high demand.” Given these circumstances, it’s no wonder there was a question in the Beansprout community about the best strategies for earning a higher yield on cash savings.
In this piece, I’ll dive into some alternatives to T-bills and fixed deposits, aiming to uncover options that might still yield an interest rate approaching 3%. We’ll look at the most recent interest rates for fixed deposits, T-bills, Singapore Savings Bonds (SSBs), and money market funds. Each of these has its own set of pros and cons when it comes to storing your cash.
I’ll share what I take into account when choosing between fixed deposits, T-bills, SSBs, and money market funds. Additionally, I’ll outline my personal strategy for managing my cash reserves, considering the current financial landscape.
