Fixed deposits are considered one of the safest investment instruments in the market today. Particularly for risk-averse investors who do not want to gamble with their existing funds, FDs may seem like a foolproof way to ensure guaranteed returns.
FD rates differ month to month, depending on when you open your account, and the rate you earn depends on your tenure and the amount you deposit. Typically, tenures for FDs range from as short as a month to as long as four years. Naturally, more attractive interest rates will be accrued to longer tenures of at least two years.
SGS bonds are debt securities that pay a fixed interest rate. With maturities that range from two to 50 years, they are issued to develop the debt market. T-bills typically have maturities of one year or even less. Like many other major economies’ bond yields, Singapore T-bills have seen increasing yields due to central banks around the world hiking up their rates in an attempt to curb inflation.
There are four main types of mutual funds: bond funds, stock funds, money market funds, and target date funds. Each type of fund has its own features, risks and rewards.