Bank Accounts Bonds Singapore Market

Fixed Income Tracker Update (June 2023) – T-Bills and Cash Funds More Attractive Than Fixed Deposits

Calvin Lo

I’ve just updated my Fixed Income Tracker as at mid June 2023. Here’s a summary snapshot:

Fixed deposit rates have been falling further. Fortunately, cash funds have been increasing their projected rates. T-bills yields have also held up pretty well so far.

Changes since end May

  • HSBC FD 3m reduced to 3.50% from 3.65%, and 6m reduced to 3.40% from 3.45%, but surprisingly increased 12m to 3.30% from 3.10%
  • OCBC FD 6m reduced to 3.00% from 3.20%, and notably increased minimum placement to $30K from $20K
  • UOB FD 6m/10m reduced to 2.90% from 3.10%
  • BOC FD no change to 3m, other tenures reduced by 0.10%
  • CIMB FD 6m/12m reduced to 3.15% from 3.35%, 9m reduced to 3.35% from 3.45%, and no longer offers 18m placements
  • No change to FD rates for DBS, RHB, SCB
  • StashAway Simple Guaranteed increased rates to 3.50% from 3.40%
  • MoneyOwl WiseSaver increased projected rates to above 4%
  • No change to interest rates offered by bank savings accounts

My thoughts

  • Seems like FD rates might continue to slide. Some banks have stopped offering longer tenures altogether.
  • Most local banks are not even offering longer tenures except DBS for 12m tenures (new placements) so you might have to resort to foreign banks.
  • StashAway Simple Guaranteed bucked the trend for FDs (underlying FD with Citibank) by increasing its guaranteed rate to a respectable 3.5%.
  • Cash management funds like MoneyOwl WiseSaver and Syfe Cash+ are surprisingly still maintaining or even increasing projected rates, indicating that short-term rates might still be staying high.
  • 6-month T-bill cut-off yields have been resilient and looking increasingly attractive vs fixed deposits.

Cash position update

I’ve recently successfully bid for small amounts of 6m T-bills with both cash and CPF OA. I think the rate of 3.84% is very attractive compared to other options.

I keep the rest of my cash in MoneyOwl WiseSaver, which is paying ~4.11% (changes daily).

StashAway Simple Guaranteed looks competitive now especially since they don’t require any minimum amount for placements, so I might also consider using them for amounts less than $1K (which is the minimum amount for T-bills).

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