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031022 Singapore Savings Bonds (SSB) Oct 2022

Latest Singapore Savings Bonds (SSB) Oct 2022 Guide: SSB Interest Rate, SSB Info, & How To Buy SSB Singapore

profileMing Feng

Singapore Bonds to Buy: Singapore Savings Bonds (SSB)

The Singapore Savings Bonds (SSB) is one of the more common options for Singaporeans to invest their money in as it usually offers a higher return as compared to bank fixed deposits.

It is also one of the easier ways for risk-averse investors to fight inflation in Singapore.

For reference, the latest inflation numbers from Singapore:

Side note: we’ve noticed that the recent SSB rates are increasing steadily.

If you’re deciding between SSBs and fixed deposits.

This quick comparison should help you with your decision:

 Singapore Savings Bond (SSB)Regular Bank Savings AccountFixed Deposits
LiquidityYesYesSomewhat
(can withdraw but usually with penalties)
Easy to Get Into?YesYesYes
Returns >1% Per Annum?DependsNo
(0.05% base)
Depends
(at least better than regular bank savings account)

And if you’d like to find out more about SSBs, then this guide will be your best friend:

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any investment product.


TL;DR: Singapore Savings Bond October 2022 — Singapore Savings Bond Interest and More

The interest rate for SSB changes every month with each issue…

Here are the details for this month’s Singapore Savings Bonds (via MAS):

Details Of This Month's Bond
Bond IDGX22110A

SBNOV22 GX22110A in your CDP statement

Interest payment will be reflected as CDP-SBNOV22 in your bank statement

GX22110A in your SRS statement
TenorApproximately 10 years
Amount Offered$900 million*
Issue Date1 Nov 2022
Maturity Date1 Nov 2032
Interest Payment DatesUpcoming payment: 1 May 2023
Subsequent payments (until maturity):
Every 6 months on 1 Nov and 1 May
Application PeriodOpens: 3 Oct 2022, 6pm

Closes: 26 Oct 2022, 9pm

Allotment: 27 Oct 2022, after 3pm

Issuance: 1 Nov 2022 (by end of day)
Redemption PeriodOpens: 3 Oct 2022, 6pm

Closes: 26 Oct 2022, 9pm

Redemption of Bonds: 1 Nov 2022 (by end of day)
Investment AmountsMinimum of $500 (in multiples of $500)

The total amount of Savings Bonds you can hold at any one time cannot exceed $200,000

*The total amount issued may be less than the maximum amount offered if total eligible subscriptions are less than the maximum amount offered.

According to MAS, the previous Savings Bond was allotted using the Quantity Ceiling format:

  • Applicants who applied for $42,000 or lower were fully allotted, subject to the individual allotment limits.
  • Applicants who applied for $42,500 or higher were allotted either $42,000 or $42,500.
  • Approximately 72.31% of these applicants were selected at random and allotted the additional $500.

Note: Where the issue/settlement date, coupon payment, redemption or maturity date specified above falls on a day that the electronic payment system, established by the MAS, is not in operation, issuance/settlement, coupon payment or redemption, as the case may be, will be effected on the next day when the electronic payment system is in operation.

What Is the Interest Rate for Singapore Savings Bond? October 2022 SSB Interest Rate

The interest rate for this month’s bonds is:

Year From Issue DateInterest Rate(%)Average Return Per Year (%)*
1 Year3.083.08
2 Years3.153.11
3 Years3.183.14
4 Years3.193.15
5 Years3.213.16
6 Years3.233.17
7 Years3.253.18
8 Years3.263.19
9 Years3.283.20
10 Years3.303.21
*At the end of each year on a cumulative basis.

If you invest $1,000 in this issue of Singapore Savings Bonds and hold it for the full 10 years.

The effective interest rate per year will be 3.21%, and you’ll get $321 in interest (via the official SSB calculator).

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Investing in Bonds: What Is a Singapore Savings Bond?

Singapore Savings Bonds are issued by the Singapore Government to provide Singaporeans with a safe and flexible option for long-term savings.

Is Singapore Savings Bond a Good Investment?

Before we jump into investing in the SSB, let’s take a closer look at the risks and benefits.

1. Can I Withdraw Singapore Savings Bond?

The longer you hold on to the bond, the higher the interest rate you enjoy.

There is also no penalty for individuals who wish to exit their investment early.

Once you submit your redemption request, you will get your principal back (along with any accrued interest) by the second business day of the following month.

What does this mean?

Assuming you choose to redeem $1,000 anytime during January…

You’ll receive $1,000 and any accrued interest by the end of the second business day of February.

So if you hate the feeling of having your money locked up for extended periods of time, the SSB is one of the many solutions available.

But, you will have to pay a $2 transaction fee for each withdrawal.

2. Are Singapore Savings Bonds Risk-Free?

The amount you invest in the SSB is completely backed by the Singapore Government.

Whatever your political views might be, it IS a fact that the Singapore Government received a “AAA” credit rating.

This reduces the risks of investing in the SSB to the bare minimum (read: there’re still risks tho).

The only other countries that enjoy the same “AAA” credit rating are countries such as Switzerland and cities like Hong Kong.

Having such a strong rating arguably makes the SSB one of the safest products in the market.

3. How Much Should I Invest in Singapore Savings Bonds? $500 Is All It Takes

You don’t need to starve or eat grass in order to invest in SSBs.

The minimum amount to invest is $500.

Which makes it suitable for almost everybody.

However, the Individual Limit for SSB is currently set at $200,000 (this includes bonds bought with cash and your SRS monies).

So even if you’re a millionaire, you can’t just dump all your money into SSBs either.

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How to Buy Singapore Bonds: Step-By-Step Guide to Investing in Your First Singapore Savings Bonds (SSB)

Here’s how you go about applying for the Singapore Savings Bonds.

1. What Do You Need?

Before applying, make sure you have the following:

2. How To Invest In Singapore Savings Bonds: CDP Login and SRS Login

You can apply for a Singapore Savings Bond through two methods:

  1. Apply at an ATM (only DBS/POSB, OCBC, or UOB) near you, OR
  2. Apply through Internet Banking under Singapore Government Securities.

Note: If you are using OCBC, the OCBC mobile app works too!

Remember to have your CDP account number on hand when applying.

How Much Singapore Savings Bonds Can I Buy?

Take note that a minimum investment of $500 is required.

If you wish to invest more, you can do so in multiples of $500.

Each application is capped at $50,000.

You also can withdraw it at any time.

And there will be a $2 transaction fee charged for each application or withdrawal.

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What to Do After Application of SSB?

Once you have applied for your SSB, all you have to do is sit back and relax.

The results will be announced after the “last day to apply date”.

You can find out important dates like the “last day to apply date”.

Do note that if there is an event of over-subscription, meaning more demand than the amount available, you might find yourself only investing a portion of the amount you applied for.

The rest of the amount will be returned back to your bank account.

Other Important Dates

The successful allocated Savings Bonds will be issued on the first business day of the following month.

You can expect your first interest six months after the bonds are issued.

Interests are payable every six months.

All these will be reflected in your statement, and interest is automatically credited to your bank account.

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Singapore Savings Bond (SSB) vs Fixed Deposits

We’ve established in other articles that SSBs are a better investment as compared to fixed deposits given their:

  • Higher interest
  • Higher flexibility, and
  • Lower barrier to investing.

Let’s say you wish to invest $500 in SSBs.

If we look at the most recent Fixed Deposit Promotion Rates with a 1-year tenor, your best bet would be about 2.90% per annum from UOB.

And if we compared it with the average return per year for this month’s SSB…

 

It seems like leaving your money in with the Singapore Savings Bond is a better investment regardless of whether your investment horizon is one year or 10 years.

But, an important thing to note is that you won’t be able to get a big allotment.

Conclusion?

If you have a long investment horizon, then you might want to consider Singapore Savings Bond as another viable option.

Alternatively, you could also look at high-interest savings accounts… although you might need to jump through a few hoops in order to get the highest interest rate possible.

Or even consider other financial instruments like insurance savings plans:


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What If I Have Questions About SSBs?

We know that you’ve got limited funds to work with, and you want to maximise your investment potential.

Are you wondering if investing in SSBs is better than Temasek bonds?

Wondering what is the best SSB strategy to adopt?

Thinking about investing in ETFs or SSB?

Source: SpongeBob SquarePants | Giphy

There’s an easier way out.

Why not try asking the friendly community members on Seedly?

This way, you can get answers, and everybody learns too!

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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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