In The Money

Having fixed deposits and bonds in your portfolio: Which one offers a better interest rate?

In this fortnightly series, we address readers’ queries on investing issues. This week, we look at fixed deposits and bonds.

The advantage of Singapore Savings Bonds is that you can redeem them in any given month before the bond matures, with no penalty for exiting your investment early. PHOTO ILLUSTRATION: ISTOCK PHOTO
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Q: What can give me a better interest rate than fixed deposits? I hear that bonds and structured deposits offer higher yields but they may be riskier. 

Many people are looking for yield during this period of rising inflation, yet because they have been burned by earlier investments, they are also hoping to protect their capital. You can't enjoy high yield and low risk, but some products try to offer the best of both worlds.

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