Minimum Return Benchmark For The Next Six Months

Please read the disclaimer at the bottom of my blog if you wish to continue with the contents below.
Lets say you are risk averse, but you do not wish to put your idle cash in a bank for the measly 0.05% interest. The minimum return benchmark you should get for the next six months can be computed for your comparison. Any investment amount can be used, but for simplicity sake, lets use $250k. 50k in 3.05% OCBC 360 and 200k in 1.5% UOB fix Deposit to me is the "minimum return benchmark" you should achieve for the next six months. That would give an average yield of 1.81% p.a for a principal of 250k.

250k x 1.81% x 0.5= $2262.50

This is to me, is a safe and convenient investment you can make(if banks don't default). It would give you a risk free return of $2262.50 for the next six months which is equivalent to around $377 interest a month. If you think you are unable to confidently get at least 1.81% p.a for a 250k investment in the next six months(reasons being: stocks are still overpriced? Interest rates hike next year?), no harm adopting this risk free strategy for now. To each his own.

OCBC 360 and how to maximize your savings account click here
UOB 1.5% Fix Deposit click here (Promotion ends 31st December)


  1. Excellent way to think about risk-free rate, thanks!