Fixed Income Tracker Update (May 2023) – FD Rates Falling, T-bills and Cash Funds Resilient

I’ve just updated my Fixed Income Tracker as at end May 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 early May

• HSBC FD 3m reduced to 3.65% from 3.75% and 6m reduced to 3.45% from 3.55%
• OCBC FD 6m reduced to 3.20% from 3.40%
• UOB FD 6m/10m reduced to 3.10% from 3.45%
• BOC FD 3m reduced to 3.50% from 3.60%, other tenures reduced by 0.10% to 0.15%
• No change to FD rates for DBS, RHB, SCB, CIMB
• Syfe Cash+ increased to 3.7% from 3.5% (projected)

My thoughts

• SCB Bonus$aver and UOB One account offers the highest yield on EIR $100k but there are hoops to jump through to qualify.
• Fixed deposit rates might continue to fall next month, so it might be worth considering locking in some and for longer tenures. However, 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.
• Cash 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. There’s an upcoming auction on 25 May 2023, if you’re interested to bid.

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