![](https://onecms-res.cloudinary.com/image/upload/s--80Tnjonz--/f_auto,q_auto/c_fill,g_auto,h_676,w_1200/v1/mediacorp/cna/image/2022/09/21/istock-925627268.jpg?itok=LtBHqcj6)
SAVINGS BONDS, FIXED DEPOSITS AND ROBO-ADVISERS
Also influenced by the Fed’s interest rate decisions, returns on the Singapore Savings Bonds and banks’ fixed deposits are headed lower as well, analysts said.
Already, interest rates for fixed deposits have fallen. Banks are now paying 3.2 to 3.55 per cent for six-month fixed deposits, down from a range of 3.5 to 3.88 per cent in February.
This is much lower than the recent cut-off yields for T-bills but for investors who prefer to know how much they are getting in return before deciding, fixed deposits remain a viable option.
As bank promotions often come with conditions such as fresh deposits or minimum placements, robo-adviser StashAway has rolled out a cash management portfolio that allows its users to park any amount into fixed deposits.
For now, fixed deposits from Citibank Singapore form the underlying funds for the new portfolio called StashAway Simple Guaranteed.
Similar to taking up a bank fixed deposit, StashAway users will receive their principal amount and guaranteed returns after a lock-in period. The return rate is currently 3.4 per cent per annum for a six-month tenor.
Other robo-advisers and online trading platforms have also added new cash management accounts that tout higher returns.
Syfe, in partnership with bond giant Pimco, launched two new portfolios last month comprising global bond funds and targeting monthly payouts from 4 to 6 per cent a year.
However, the payouts are subject to market movements and not guaranteed. A minimum investment sum of S$5,000 is also required.
Investors should also consider the fees involved when placing money with robo-advisers.
Syfe charges management fees between 0.35 and 0.65 per cent a year. Its new bond portfolios also come with fees charged by the fund manager, at about 0.7 per cent a year.
For now, StashAway’s Simple Guaranteed does not have management fees. But the robo-adviser’s other cash management tools – Simple and Simple Plus – charge annual fees that will be raised to 0.15 per cent and 0.2 per cent respectively from Jul 1.