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 November 2021’s SSB bonds yield an interest rate of 1.45%/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 0.34%/yr.
$10,000 will grow to $11,485 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 1.43%/yr for 10 years and 0.35%/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 many of the bonds you applied were successful.
Here is the schedule for application and redemption if you wish to sell:
You have 02 to about the 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 are 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 a MAS detailed comparison of the three:
What is these 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
- 2021 Feb
- 2021 Mar
- 2021 Apr
- 2021 May
- 2021 June
- 2021 July
- 2021 Aug
- 2021 Sep
- 2021 Oct
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Monday 4th of October 2021
Thanks for sharing your article - always curious how long it takes you to write an article. If I am writing, I might take a full day and not finish one ! :)
Anyway, back to the Spore Saving Bonds - why would this be a good investment when there are bond funds that pays more than 3% annually and is relatively safe too ? This Pimco fund for example, gives 4% annually and the NAV is also holding well.
Tuesday 5th of October 2021
Hi Sean, this is a Pimco Income fund. The risk level is different. During COVID last year, you can see the volatility is different from Singapore Savings Bonds