Here is a safe way to save your money that you have no idea when you will need to use it, or your emergency fund.
The February 2021’s SSB bonds yield an interest rate of 0.89%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB, OCBC, DBS)
However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 0.32%/yr.
$10,000 will grow to $10,905 in 10 years.
This bond is backed by the Singapore Government and it’s available to Singaporeans.
A single person can own not more than SG$200,000 worth of Singapore Savings Bonds. You can also use your Supplementary Retirement Scheme (SRS) account to purchase.
You can find out more information about the SSB here.
Note that every month, there will be a new issue you can subscribe to via ATM. The 1 to 10-year yield you will get will differ from this month’s ladder as shown above.
Last month’s bond yields 0.89%/yr for 10 years and 0.27%/yr for 1 year.
Here is the current historical SSB 10 Year Yield Curve with the 1 Year Yield Curve since Oct 2015 when SSB was started (Click on the chart, move over the line to see the actual yield for that month):
The Application and Redemption Schedule
You will apply for the bonds through the month. At the end of the month, you will know how much of the bond you applied was successful.
Here is the schedule for application and redemption if you wish to sell:
You have 02 to about 25th of the month (technically the 4th day from the last working day of the month) to apply or decide to redeem the SSB that you wish to redeem.
Your bond will be in your CDP on the 1st of the next month. You will see your cash in your bank account linked to your CDP account on the 1st of next month.
How does the Singapore Savings Bonds Compare versus SGS Bonds versus Singapore Treasury Bills?
Singapore savings bonds is like a “unit trust” or a “fund” of SGS Bonds.
But what is the difference between you buying SGS Bonds and its sister the T-Bills directly?
Both the SGS Bonds and T-Bills are also issued by the Government and are AAA rated.
Here is an MAS detailed comparison of the three:
What is this Singapore Savings Bonds? Read my past write-ups:
- This Singapore Savings Bonds: Liquidity, Higher Returns and Government Backing. Dream?
- More details of the Singapore Savings Bond. Looks like my Emergency Funds now
- Singapore Savings Bonds Max Holding Limit is $200,000 for now. Apply via DBS, OCBC, UOB ATM
- Singapore Savings Bonds’ Inflation Protection Abilities
- Some instructions on how to apply for the Singapore Savings Bonds
Past Issues of SSB and their Rates:
- 2015 Oct
- 2015 Nov
- 2015 Dec
- 2016 Jan
- 2016 Feb
- 2016 Mar
- 2016 Apr
- 2016 May
- 2016 Jun
- 2016 Jul
- 2016 Aug
- 2016 Sep
- 2016 Oct
- 2016 Nov
- 2016 Dec
- 2017 Jan
- 2017 Feb
- 2017 Mar
- 2017 Apr
- 2017 May
- 2017 Jun
- 2017 Jul
- 2017 Aug
- 2017 Sep
- 2017 Oct
- 2017 Nov
- 2018 Jan
- 2018 Feb
- 2018 Mar
- 2018 Apr
- 2018 May
- 2018 Jun
- 2018 Jul
- 2018 Aug
- 2018 Sep
- 2018 Oct
- 2018 Nov
- 2018 Dec
- 2019 Jan
- 2019 Feb
- 2019 Mar
- 2019 Apr
- 2019 May
- 2019 Jun
- 2019 Jul
- 2019 Aug
- 2019 Sep
- 2019 Oct
- 2019 Nov
- 2019 Dec
- 2020 Jan
- 2020 Feb
- 2020 Mar
- 2020 Apr
- 2020 May
- 2020 Jun
- 2020 Jul
- 2020 Aug
- 2020 Oct
- 2020 Nov
- 2020 Dec
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Saturday 9th of January 2021
Yeah, I've noticed sing-dollar money market funds yields have also ticked up miniscule-y in the last 30 days.
But a bit surprised that SSB's longer term yield is still so depressed, considering the recent large steepening of the US treasury yield curve.
Haha, hope this isn't a continued Japanisation of the S'pore market. i.e. "zombie" STI and "forever depressed" yields.
Saturday 9th of January 2021
definitely an improvement, but such low rates seem to be pushing people into the stock, either directly or indirectly through purchase of unit trusts/ILPs
by the way Kyith, any chance of implementing blogger sign-in for comments. with the current comment function where you can enter any name you like, seems too easy to impersonate someone else.
Saturday 9th of January 2021
Hi Lim, thanks for the suggestion. I wonder if that will impede others from participating more actively. This is certainly something for me to think about. Regarding purchasing unit trust and ILP, that is true. Singaporeans are fine having their money tied into a product for a long period.