LD 90.5: Becoming a money lender

Rates updates as of 12th March 2021

• Savings account
  • insured by SDIC, up to 75,000 per account
  • 0.05% per annum
• Fixed deposit
  • insured by SDIC, lock-in but higher interest than savingis
  • 0.6% per annum
• Singapore Savings Bond
  • lending to SG Gov, not always better than FD, can redeem anytime
  • SG Gov cannot borrow to fund recurrent spendings, it can borrow to finance infrastruction
  • Budget 2021 calls for 90B worth of bonds to be issued
  • average 1.15% per annum if you hold for 10 years, 0.35% (year 1) to 2.21% (year 10)
• Central Provident Fund
  • 4% per annum for retirement account/special account
  • less than 55, extra 1% on first $60k
  • 55 or more, extra 2% on first $30k, extra 1% on next $30k
• P2P lending
  • similar to crowd funding, but investors expect a returns not a product at the end
  • different types of products with different risks
  • Funding Societies reported 7.28% weighted average returns in 2020 for short term investments (< 12 months)
• Crypto lending
  • Celsius Network (centralized), 10.51% per annum for USD stablecoins
  • Aave (decentralied), 9.29 - 12.40% per annum for USD stablecoins (past 30 day average)