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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)

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