With interest rates on fixed deposits heading south, I’m left pondering where to park my $100,000 in 2025. Just last year, with bank rates sky-high, I opted to stash my funds in fixed deposits. Now, as we near January, those deposits are maturing, yet renewing isn’t part of my plan. Currently, the most appealing rate for a bank fixed deposit offering in January 2025 is a mere 3.05% per annum, and that’s for locking my money away for six months.
You might think I’m gearing up to divert those matured funds into either Singapore Treasury Bills or the Singapore Savings Bond. However, here’s the snag: the latest issue of Singapore Treasury Bill (BS25101F) only has a cutoff yield of 2.99% per annum. Moreover, if you decide to hold on to the Singapore Savings Bond SBFEB25 GX25020H for a full decade, the effective interest rate stands at just 2.82%.
So, am I planning to place my money there? No, I’ve got something else in mind.
