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Nov's Singapore Savings Bonds offer 3.21% average yield - highest since 2015

November SSB rates have yields hitting record highs as inflation runs red hot - with the average 10-year interest rate reaching 3.21%.
Nov's Singapore Savings Bonds offer 3.21% average yield - highest since 2015

November's Singapore Savings Bonds (SSBs), with codename SBNOV22 GX22110A, are yielding an average of 3.21% over the next 10 years - the highest in years as interest rates continue soaring.

The interest rate each year is as follows:

  • Interest rates are now above 3% every year
  • This 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 offered by the Singapore government. 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

As previously mentioned, SSB rates will continue to trend higher as US inflation has not peaked and the US Federal Reserve continues to raise rates to combat high inflation rates.

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. There is an issuance limit of S$900m for this month's SSB.

We expect this month's SSB to be popular like hot cakes, and hence, you might only receive an allocation up to a certain limit. Previously, when a new 10-year record for average yield was achieved in August, it was roughly 4x oversubscribed.


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