Should i go for long term or short term?
SIA is offering the bond at 3.03% for 5 years to mature while SSB requires 10 years to mature. But we have to note that SSB you can withdraw out anytime with a fee of $2 and your principle will be fully returned back.
Let’s say I took a 5 years average of yield for SSB for the lowest rates in April, it will be 2.01% and while SIA is offering it at 3.03%. Which means the difference is 1.02% but I have to take up a lot of risks by applying for SIA bond.
With that saying, I really don’t see any point in applying for SIA Bond when there is a risk-free bond with slightly lower interest compared to SIA. But