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July Singapore Savings Bonds offer 2.71% annual return

Singapore Savings Bonds (SSBs) are back with some fanfare as yields increase.
July Singapore Savings Bonds offer 2.71% annual return

July's SSBs, with codename SBJUL22 GX22070T, are yielding an average of 2.71% over the next 10 years, the highest they have ever been in the past 3 years.

The interest rate each year is as follows:

  • Note that the interest rate starts low at 1.69% for the 1st year and rises to 3% in the 10th year
  • The average is ~2.71%, which is higher than CPF OA (2.5%) and current FD rates and bank cash deposit rates

The issue details are as follows:

Why SSBs

Singapore Savings Bonds offer an almost risk-free, liquid alternative to cash with a higher interest rate. They can be redeemed at face value at any time, with roughly about one month's lead time to receive the actual cash in your bank account.

Compared to current bank rates which still have not kept up with rising global interest rates, lending money to the Singapore government offers a good alternative to keeping your money in your bank account. However, there is a limit of $200,000 for each individual.

Read more about how we manage cash in the below article.

The Ultimate Guide to Managing Cash in Singapore
In this guide, we explore some of ways you can deploy cash in Singapore and evaluate their pros and cons.

SSB strategy

While SSB rates have been trending higher, we believe that it has not peaked yet, as inflation is still high, and US interest rates are expected to hit 3% by year-end if inflation continues to be high. We could see similar rates in Singapore if that happens.

Therefore, it's advisable to ladder into SSBs. For example, if you wish to deposit $100,000 into SSBs, then you could deploy that over six months as follows:

  • Month 1: $15K
  • Month 2: $15K
  • Month 3: $15K
  • Month 4: $15K
  • Month 5: $20K
  • Month 6: $20K

*Application fee is $2 each time

Because SSB also pays interest every 6 months, laddering your deposit as above will allow you to receive interest every month.

It's also worth noting that the yields on SSBs do not beat inflation, and merely offer a higher interest-earning liquid alternative to cash sitting in the bank. Unless you have a short-term need for cash, they should be invested.

To apply for SSBs, check out this MAS guide. You'll need a CDP account so interest payments can be credited directly into your bank account.


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