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Singapore Savings Bonds SSB September 2022 – 1-Year Yield Shoots to 2.63% (SBSEP22 GX22090Z)

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Here is a safe way to save money that you have no idea when you will need to use or your emergency fund.

The 10-yr and 1-yr Singapore Savings Bonds rates since the first issue in Oct 2015

The September 2022’s SSB bonds yield an interest rate of 2.8%/yr for the next ten 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 one year, with two semi-annual payments, your interest rate is 2.63%/yr.

$10,000 will grow to $12,810 in 10 years.

The Singapore Government backs this bond, and it’s available for you to invest if you have a CDP or SRS account (this includes Singapore Permanent Residents and Foreigners).

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 3.0%/yr for ten years and 2.0%/yr for one 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, and move over the line to see the actual yield for that month):

How to Apply for the Singapore Savings Bond – Application and Redemption Schedule

You will apply for the bonds throughout 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:

Application and redemption date of Singapore Savings Bonds
Click to see a larger schedule

You have from the second day of the month to about the 25th of the month (technically the 4th day from the last working day) to apply or decide to redeem the SSB you wish to redeem.

Your bond will be in your CDP on the 1st of the following month. You will see your cash in your bank account linked to your CDP account on the 1st of next month.

You May Not Get All the Singapore Savings Bonds That You Apply For

Do note that when you apply for the Singapore Savings Bonds, you may not get all that you apply for. Think of this as you are bidding for an amount which is determined by the demand and supply of Singapore Savings Bonds.

When the interest rate is low, the demand tends to be lower relative to history, and you can get a more significant amount. Still, if the interest rate is very high, demand can be so overwhelming that you may get a small portion you apply for.

For example, in the August 2022 issue, you can apply for $100,000, but the maximum allotted amount per person was $9,000 only. If you applied for $8,000, you would get your total $8,000 allocation.

To review the past allotment trend, you can take a look at SSB Allotment Results here.

How do the Singapore Savings Bonds Compare to SGS Bonds or Singapore Treasury Bills?

Singapore savings bonds are like a “unit trust” or a “fund” of SGS Bonds.

But what is the difference between buying SGS Bonds and its sister, the T-Bills, directly?

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:

SGS Bonds versus Singapore T-bills versus Singapore Savings Bonds
Click to see a bigger comparison table

The main advantage of the 1-year SGS Bonds and Six-month Singapore Treasury Bills is that you can get a more significant allocation currently compared to the Singapore Savings Bonds. This means that if you need to earn a good interest yield of $400,000, you get a better chance to fulfil that with 1-year SGS Bonds and Six-month Treasury Bills.

Aug 2022: the annualized interest yield on the 6-month Singapore Treasury Bill for the past three years.

The short-term interest rates are getting rather exciting, and short-term SGS bonds and treasury bills may be applicable to supplement your Singapore Savings Bonds allocation.

I wrote a guide to show how you can easily buy the Singapore Treasury Bill and SGS Bonds here. You can read How to Buy Singapore 6-Month Treasury Bills (T-Bills) or 1-Year SGS Bonds.

My Past Value Add Articles Regarding the Singapore Savings Bonds

Read my past write-ups:

  1. This Singapore Savings Bonds: Liquidity, Higher Returns and Government Backing. Dream?
  2. More details of the Singapore Savings Bond. Looks like my Emergency Funds now
  3. Singapore Savings Bonds Max Holding Limit is $200,000 for now. Apply via DBS, OCBC, UOB ATM
  4. Singapore Savings Bonds’ Inflation Protection Abilities
  5. Some instructions on how to apply for the Singapore Savings Bonds

Past Issues of SSB and their Rates:

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Revhappy

Wednesday 3rd of August 2022

Hi Kyith,

Do you feel FOMO watching this stock market rally? It seems this always happens, a new rally starts, most market pundits keep saying the market is wrong, the market is wrong. But they keep watching the rally in disbelief. I have seen it over and over again. Yet, it seems almost impossible for most people to stay invested. I think thats why they say, investing is simple but not easy. If everyone could do it, everyone would be very rich, which is not possible.

Markets always trump me, but still amaze me.

Cheers! Revhappy

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