As revealed in my 7-Figures Portfolio, Bonds form the biggest chunk at 19%, of which most of it includes 6 months T-bills, with which I have created a 6 months Bond Ladder to ensure funds liquidity to capitalise on probable investment opportunities.
However with the availability of HSBC 5.55% high Savings account, this resolves the liquidity issue of excess cash vs Bonds (T-bills, SSB, Fixed Deposits etc)
Bank Savings acconts should be relatively safe, with guarantees of at least $75K by SDIC. Plus HSBC is also one of the 7 Singapore banks classified as Domestic Systematic Important Bank (D-SIB).
The last bank run in Singapore happened in 1974, almost 49 years ago, survived and subsequently was acquired by present day UOB bank
Even in USA, when the relatively small Silicon Valley Bank run happened, USA government quickly stepped in for a full guarantee of ALL bank deposits.
Comparatively, T-Bills are fully backed by the Singapore Government, AAA credit rating. Plus Singapore has $0 net external debt. Yes, $0! external debt (woohoo, well done Singapore!). Technically, u can't default/bankrupt with ZERO debt. 😅
So it does seem that T-Bills are still relatively SAFER than HSBC savings, but it's kind of negligible. So for the time being, more of my cash is in HSBC rather than in 6m T-Bills (which also are 2 weeks apart). T-Bills yields are also slightly lower at around $3.85% vs HSBC 5.55%
Still in our current highly volatile world, u can never say NEVER! Let me know your thoughts of 3.85% T-Bills vs 5.55% HSBC Savings?
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