Hi Gurus, is there any stable investment with interest being reinvest into the principal? I know T bill, SSB and SGS is not because the interest in deposit to CDP bank acc. How about fix deposit? Is the interest reinvested every 6 month? or when matured? TIA
Banks in Singapore offer that option with their fixed deposits, yes. Of course thereās no guarantee youāll like the fixed deposit interest rate offered with automatic (or manual) renewals, and itās likely fixed deposit rates wonāt even keep pace with inflation. Also, thereās a little bit of additional risk involved (compared to Singapore Government Securities) if your total deposits with the bank exceed the SDIC limit.
Ibkr idle usd, reinvested every mth
1st 10k usd not counted
Thatās true, and if itās Interactive Brokers LLC (U.S.) then at least US$250,000 of deposit insurance applies even if the currency held is not U.S. dollars. U.S. estate tax may apply.
The fixed deposit-like short-term endowment plans that insurance companies sell may feature an automatic reinvestment option at the end of the initial policy term. Ordinary interest bearing bank accounts obviously āreinvestā interest. CPF interest stays in CPF by default. Money market funds tend to āreinvestā interest and dividends, although Iām not fond of them in Singapore since theyāre (in my view) too loosely regulated here.
If youāre interested in long-term investments (which are not short-term stable) then there are many so-called āaccumulatingā funds available. Popular accumulating stock index funds include ISAC and VWRA. Accumulating bond index funds include CRPA and IGIL.
