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Singapore Savings Bonds SSB August 2021 – Short Yield Just Cannot Turn Up

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Author: Kyith
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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 Rate since the first issue in Oct 2015

The August 2021’s SSB bonds yield an interest rate of 1.50%/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 $11,534 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 1.53%/yr for 10 years and 0.36%/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:

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 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:

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

What is these 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:

Sign up with the new SG broker Futu SG today till before 30th June and you can receive one FREE Apple share and 3 months of Commission-free trading. All you have to do is open the account and deposit SG$2700 into the account and you can get this welcome package estimated to worth SG$170!

Here are the easy steps that allow you to qualify in a short time.

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The post Singapore Savings Bonds SSB August 2021 – Short Yield Just Cannot Turn Up appeared first on Investment Moats.

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