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How to generate more than 2% interest?

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Old 15-01-2020, 10:34 PM   #1
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How to generate more than 2% interest?

I've already topped up CPF SA, not planning for more.

I've about 80k recovered from the 6 months Tbill that had expired. How should i get the best from it?

Prefer something very safe.
BTW I already have about 100K on SSB, bought a few months ago when first year interest was 1.88 pct.

I'm not sure about dividend stock or ETF, so haven't invest in them.

Last edited by hardwaregone; 15-01-2020 at 10:57 PM..
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Old 15-01-2020, 10:51 PM   #2
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Do you have a bank account like DBS Multiplier or UOB One?
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Old 15-01-2020, 10:57 PM   #3
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Do you have a bank account like DBS Multiplier or UOB One?
No for either but DBS multiplier seems to need me to do a lot of things?
The thread itself is very lengthy, also it doesnt' cover interest for all my 80k right?
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Old 15-01-2020, 11:08 PM   #4
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A35 or MBH bond efs listed on SGX.

Buy and forget
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Old 16-01-2020, 12:05 AM   #5
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You can loan it to me. At 2%
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Old 16-01-2020, 12:17 AM   #6
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I've already topped up CPF SA, not planning for more.

I've about 80k recovered from the 6 months Tbill that had expired. How should i get the best from it?

Prefer something very safe.
Doesn't exist, sorry mate. You can either have "very safe" or "yield greater than 2%"; you can't have both.

Your alternatives:
1) Singapore government bonds. Rock-solid safe, but low yields (about 1.5-1.6% from the 1-year out to the 5-year); if you want a 2% yield you have to buy the 30-year.
2) High-grade corporate bonds. Generally safe (there is a slight risk of the company defaulting on its debt, but that's why you buy an ETF that owns bonds from a wide range of different companies); and a good SGD corporate-bond ETF like MBH yields about 2.5%.
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Old 16-01-2020, 12:22 AM   #7
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Do u spend?
Uob one 75k. Set up 3 giro and spend $500 per month. More straightforward than multiplier?

No for either but DBS multiplier seems to need me to do a lot of things?
The thread itself is very lengthy, also it doesnt' cover interest for all my 80k right?
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Old 16-01-2020, 12:29 AM   #8
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if you want very safe, put 75K into maybank isavvy savings account, then musical chair with isavvy-i. currently 1.9% without much requirements, i also do that but i take a risk put above sdic guarantee amount.
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Old 16-01-2020, 12:43 AM   #9
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Doesn't exist, sorry mate. You can either have "very safe" or "yield greater than 2%"; you can't have both.

Your alternatives:
1) Singapore government bonds. Rock-solid safe, but low yields (about 1.5-1.6% from the 1-year out to the 5-year); if you want a 2% yield you have to buy the 30-year.
2) High-grade corporate bonds. Generally safe (there is a slight risk of the company defaulting on its debt, but that's why you buy an ETF that owns bonds from a wide range of different companies); and a good SGD corporate-bond ETF like MBH yields about 2.5%.
If I purchase an etf which own bonds from various companies. It means that if one of them default, I still won’t lose most of my money right?

Can I sell my etf anytime? How does it give me 2.5 pct? They release dividend?
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Old 16-01-2020, 04:47 AM   #10
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BTW I already have about 100K on SSB, bought a few months ago when first year interest was 1.88 pct.
If you like SSBs, you'll be happy to know that the individual cap has been raised to $200k so you can buy another $100k if you like.

I'm not sure about dividend stock or ETF, so haven't invest in them.
Dividend stocks are nothing special. ETFs can be good though if you select one that is suitable for the risk profile you want.

If I purchase an etf which own bonds from various companies. It means that if one of them default, I still won’t lose most of my money right?

Can I sell my etf anytime? How does it give me 2.5 pct? They release dividend?
Yes, ETFs give you the diversification such that one failing company won't drastically affect your investment. It would depend on how many percent is being invested in that company.

ETFs are traded on the stock markets so can be bought and sold anytime the stock markets are opened. However if you purchase through an RSP program like POSB Invest Saver, OCBC BCIP or FSMOne RSP, then the buy/sell may only happens once or twice per month on a fixed dates.

ETFs use the dividends/coupons they receive to purchase more shares/bonds, which will increase the price and value of the ETF. ETFs can be accumulating or distributing. The accumulating will not distribute dividends, and instead continue to let the prices rise until you decide to sell off the ETFs. The distributing ones will sell some of the assets to pay out the ETF owners as dividends. Each time that happens you can see the value of the ETF drop by a corresponding amount.
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Old 16-01-2020, 06:51 AM   #11
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No need think so much for 80k. 0.1% is like a difference of $80 a year? Might as well spend the time go and earn that $80.
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Old 16-01-2020, 07:45 AM   #12
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Better interest bank is OCBC or UOB?
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Old 16-01-2020, 10:13 AM   #13
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No for either but DBS multiplier seems to need me to do a lot of things?
The thread itself is very lengthy, also it doesnt' cover interest for all my 80k right?
You just need to do simple things.

Not difficult to earn 2.X% interests.
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Old 16-01-2020, 10:16 AM   #14
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I'm just wondering about REITs ETF.

Are they worth a consideration to be part of my portfolio?
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Old 16-01-2020, 10:25 AM   #15
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You just need to do simple things.

Not difficult to earn 2.X% interests.
If I already have a dbs account, must I open a new account or can convert the DBS saving account?


My housing loan is by hdb, so can't be switching to DBS.
For the insurance, what are the good options that don't take too much of my interest
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