Capital-guaranteed and low-risk choices for savers in 2022


For those who’re nonetheless incomes something lower than 1% in your money, it’s time to get up and do one thing…earlier than rising inflation erodes the worth of your {dollars} any additional. Listed here are some instruments you’ll be able to think about using, together with low-risk and capital-guaranteed ones.

Inflation is horrifying. At first many individuals thought it might merely be non permanent, given the provision chain constraints introduced on by the pandemic and afterward, the Ukraine-Russia warfare. However quick ahead to as we speak, and it’s clear that inflation isn’t going away anytime quickly. The massive query now could be, what’s going to occur to our money, and the way a lot of will probably be eroded by inflation? How a lot can we nonetheless purchase sooner or later if costs preserve hovering?

Picture supply: Channel Information Asia

For many savers, the risk-adverse and the conservative of us, investing the cash you’ve might appear to be a troublesome job. You are worried extra about shedding cash, however but it has gotten to the purpose the place it’s now not sufficient to stash your financial savings away both. What’s a saver to do should you don’t need to make investments?

It troubles me to listen to that there are nonetheless loads of individuals who have but to modify to one of many numerous high-yield financial savings accounts supplied by our native banks, and are nonetheless preserving their cash in an account that pays solely 0.05% p.a. Being lazy is one factor, and whereas that was acceptable within the final decade, your laziness and reluctance to modify will value you closely within the coming years ought to inflation ranges stay elevated.

However I can perceive – the trouble wanted to take care of a high-yield financial savings account isn’t one thing that each particular person shall be keen to work for, and for some of us, there are nonetheless months the place you’re unable to qualify and hit the bonus curiosity, making it a colossal waste of your efforts.

For those who assume your time is best spent doing one thing else than to leap via the hoops imposed by the varied banks, then on this case, I beseech you to at the least think about short-term saving devices that may pay you increased than what your default checking account is providing you with.

And there are many choices, too:

Mounted deposits

For those who like the thought of simply heading to a financial institution and signing up for a hard and fast deposit, then these are the varied choices you may get proper now:

  • The shortest lock-in interval could be 1 12 months, yielding 2.85% by Financial institution of China
  • The best fee could be 3.2% for a lock-up interval of two years, supplied by RHB
Supply: MoneySmart

Singapore Financial savings Bonds

If mounted deposits aren’t your cup of tea, then what in regards to the Singapore Financial savings Bonds? It’ll take a little bit extra effort to use for them, however nothing a 10-minute analysis train (right here) will repair. Simply set your calendar reminders for the subsequent utility date, get your money prepared, and apply on the ATM and even via your iBanking login, then hope that you simply’ll get most allocation.

Supply: SSBs GX22110A

The fantastic thing about the Singapore Financial savings Bonds is that they supply extra liquidity than mounted deposits, as you’ll be able to cease and withdraw your funds inside the following month. For those who preserve your money there for the subsequent 2 years, you get a mean return of three.11% p.a. which isn’t too shabby in any respect.

MAS T-bills

On the lookout for even increased yields? Effectively, should you’re keen to place in additional effort and onerous work, then the MAS T-bills is likely to be proper up your alley.

Supply: 13 Oct issuance outcomes

T-bills are barely extra advanced to navigate, however should you play your playing cards proper, you’ll be able to doubtlessly nonetheless get the median yield of three.35% for the subsequent 6 months, and even as much as the best cut-off yield of three.77% should you’re actually fortunate.

The draw back? Many of the extra engaging T-bills are just for 6 months, so you will want to repeat the method at the least twice a 12 months, and constantly look out for the applying date to be sure you make it in time earlier than it closes. Oh, and should you haven’t heard, the public sale course of is a bit more difficult to navigate, so simply watch out whilst you’re executing your public sale bid.

But when the complexity places you off, there’s one final straightforward possibility that I can recommend: short-term mounted endowment plans.

Brief-term endowment plans

We’re no stranger to this software by now, and I’ve reviewed a number of first rate choices right here on this weblog as properly. And proper now, I’ve caught wind of the truth that Nice Jap has simply launched their newest GREAT SP Collection 9.

Disclosure: Nice Jap has kindly invited me to do a evaluate and clarification of their newest providing, and the next part is sponsored by them.

Key Particulars:

  • A 2-year single premium endowment plan, with a minimal of $10,000 to use
    • Assured returns of three.38% p.a*. upon maturity
  • Assured payouts on the finish of every of the 2 coverage years
  • Capital assured, upon maturity
  • Additionally gives insurance coverage protection towards dying and complete everlasting incapacity

This might be a horny possibility should you don’t thoughts the 2-year coverage time period.

For those who ask me, one method to handle this might be to place in cash you seemingly received’t want for the subsequent 2 years, and select the buildup possibility (which reinvests your payout) so that you simply’ll get increased returns on the finish of the period.

*Assured survival profit equal to three.38% of the one premium shall be payable yearly on survival of the life assured on the finish of every of the 2 coverage years.
The figures used above are for illustrative functions solely and are topic to rounding. Please check with the coverage illustration for actual figures.

† This determine is topic to rounding and is predicated on the prevailing accumulation rate of interest of two.50% every year on money payout. In different phrases, should you select the buildup possibility, your first 12 months payout shall be reinvested at an rate of interest of two.50% every year (not 3.38%). Based mostly on accumulation rate of interest of 1.00% every year on money payout, the entire illustrated payout at maturity is S$106,793. These charges aren’t assured and may be modified every now and then.

The quantity of effort wanted? Minimal.

Utility is fairly simple and you are able to do it on-line inside a few minutes. There’s additionally no want to observe altering public sale/issuance dates, observe its progress, or fear about having to attract out your cash in 6 months – 1 12 months time and discover the subsequent finest instrument over again to rotate it to.

As we’re in a rising rates of interest surroundings, you is likely to be pondering whether it is value getting this…what if rates of interest rise additional tomorrow?

The factor is, none of us can predict the longer term, however we will actually take steps to develop our wealth.

What if rates of interest rise additional tomorrow?

Effectively, should you’re of the view that rates of interest shall be increased from subsequent 12 months onwards, then allocate your cash accordingly between the varied choices I’ve shared thus far. You may then need to put extra into liquid choices like SSBs, and fewer of your cash into devices like mounted deposits or Nice Jap’s GREAT SP Collection 9.

However should you’re of the view that rates of interest might not rise considerably increased from right here, then what about doing the other? i.e. put extra into increased yielding choices – like Nice Jap’s GREAT SP Collection 9 – which may assure you a sure stage of return, and the remainder of your cash in additional liquid choices like SSBs or T-bills so you’ve quick access to withdraw at anytime.


Too many individuals are nonetheless incomes lower than 1% (or worse, simply 0.05% p.a.) on their cash as we speak, which goes to be an enormous drawback quickly if they don’t get up and alter their monetary habits. With the costs of meals, electrical energy, water, mortgage rates of interest and different way of life necessities rising…can your wage rise quick sufficient to maintain up, and can your financial savings be capable of proceed offering you the extent of security that it used to have the ability to?

On the finish of the day, even for savers and the risk-adverse who aren’t eager on investing your cash, I needed to spotlight that there are nonetheless loads of choices on the market that can assist you take care of inflation and forestall the worth of your cash from being eroded too a lot.

It’s only a matter of what you like. And should you’re not too certain, then I actually assume the newest Nice Jap’s GREAT SP Collection 9 is value contemplating – particularly with assured returns of three.38% p.a. upon maturity.

And now, the ball is in your court docket. Go forth and select the strategies that finest be just right for you.

Psst, such tranches are fashionable and have a tendency to promote out rapidly, so please act quick should you’re hoping to safe a portion of this tranche for your self.

Take a look at extra particulars on GREAT SP Collection 9 right here.

Disclosure: This publish is dropped at you in collaboration with Nice Jap, who fact-checked the offered product details about GREAT SP Collection 9. All opinions on this publish are mine.
The data introduced is for normal data solely and doesn't have regard to the particular funding aims, monetary state of affairs or specific wants of any specific particular person. As shopping for a life insurance coverage coverage is a long-term dedication, an early termination of the coverage often includes excessive prices and the give up worth, if any, that's payable to you could be zero or lower than the entire premiums paid. It's possible you'll want to search recommendation from a monetary adviser earlier than making a dedication to buy this product. For those who select to not search recommendation from a monetary adviser, it's best to think about whether or not this product is appropriate for you. Protected as much as specified limits by SDIC. Data is appropriate as 26 October 2022.

This commercial has not been reviewed by the Financial Authority of Singapore.


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