Singapore Savings Bonds vs Banks vs fixed deposits

Keep Calm And Invest In Singapore Savings Bond (SSB)

Not so long ago, we asked 4 financial bloggers on how they will suggest our readers on spending their first $10k.

The suggestions include the Straits Times Index, Blue-chip stocks and also Singapore Savings Bonds (SSBs). If you are considering to invest in the Singapore Savings Bonds, this article is for you.

What Singapore Savings Bonds (SSBs)?

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

One can invest in SSBs for up to 10 years and earn interest rate from it.

What Are The Benefits Of Parking My Savings With SSB?

Before we jump into investing into the SSB, we take a closer look at the risks involved.

Zero Penalty For Early Redemption

The longer one holds on to bond, he will be rewarded with a higher interest rate. There is, however, no penalty for individuals who wish to get their investment back early.

One can get back his investment (which includes his initial capital and interest rate earned), within one month of his application to redeem early. Hence, if you hate the feeling of having your money locked up somewhere, you will not have the same problem when investing in SSB.

Real user reviews on financial products

Fully Backed By Singapore Government

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

Whatever your political views might be, the Singapore Government received the strongest “AAA” credit rating, which reduces the risks of investing in the SSB to the minimum. Other countries with the same “AAA” credit rating are countries such as Switzerland and Hong Kong.

This makes the SSB one of the safest product in the market.

$500 Is All It Takes

One does not have to starve and scrimp like crazy to make an investment. This is because the minimum amount to invest is at $500, which makes it suitable for almost everyone.

SSB vs Parking Savings In The Bank

With reference to SSB issuing on 3rd July 2017, the interest rate is as such:


This means that if I hold to maturity, I will get an interest of $108 from the initial investment of $500 over 10 years.

The average bank deposit gives one 0.11% annually. This means that if one leaves his $500 in the bank, he will get a return of  $505.53. The difference is quite significant at about $103.

SSB vs Fixed Deposits

To conclude, we did a quick search on some of the highest fixed deposits plan offered by the banks, the highest interest rate we came across is about 1.40% per annum. Most of these fixed deposits plan requires parking a huge amount of money, usually more than $10,000

Most of these fixed deposits plan require parking a huge amount of money, usually more than $10,000. On top of that, investors are required to lock in their savings for an amount of time.

Hence, SSB is definitely a better investment when compared to fixed deposits given the higher interest, higher flexibility and low barriers to invest.