[New post] Singapore Savings Bonds SSB September 2022 – 1-Year Yield Shoots to 2.63% (SBSEP22 GX22090Z)
Kyith posted: " 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 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 ra" Investment Moats
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 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 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 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.
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 10 years and 2.0%/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):
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:
Click to see a larger schedule
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 do 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:
Click to see a bigger comparison table
What is these Singapore Savings Bonds? Read my past write-ups:
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