Singapore Financial savings Bonds SSB July 2025 Yield Falls to 2.49% (SBJUL25 GX25070Z)
Here’s a secure means for Singaporeans to save cash that you haven’t any thought when might want to use or in your emergency fund.
The July 2025 SSB bonds yield an rate of interest of 2.49%/yr for the following ten years. You’ll be able to apply by ATM or Web Banking by way of the three banks (UOB, OCBC, DBS)
Nonetheless, for those who solely maintain the SSB bonds for one yr, with two semi-annual funds, your rate of interest is 2.06%/yr.
The one-year SSB yield appears to be heading down, displaying a much less flat curve.
$10,000 will develop to $12,517 in 10 years.
The Singapore Authorities backs this bond, which you’ll spend money on you probably have a CDP or SRS account (this contains Singapore Everlasting Residents and Foreigners).
A single particular person can personal no more than SG$200,000 price of Singapore Financial savings Bonds. You may also use your Supplementary Retirement Scheme (SRS) account to make a purchase order.
You’ll find out extra data concerning the SSB right here.
Observe that each month, there will probably be a brand new concern you possibly can subscribe to by way of ATM. The 1 to 10-year yield you’re going to get will differ from this month’s ladder, as proven above.
Final month’s bond yields 2.56%/yr for ten years and 2.20%/yr for one yr.
Right here is the present historic SSB 10-12 months Yield Curve with the 1-12 months Yield Curve since Oct 2015, when SSB was began (Click on on the chart, and transfer over the road to see the precise yield for that month):
Methods to Apply for the Singapore Financial savings Bond – Software and Redemption Schedule
You’ll apply for the bonds all through the month. On the finish of the month, you’ll know the way lots of the bonds you utilized had been profitable.
Right here is the schedule for utility and redemption for those who want to promote:
You’ve from the second day of the month to concerning the twenty fifth of the month (technically the 4th day from the final working day) to use or determine to redeem the SSB you want to redeem.
Your bond will probably be in your CDP on the first of the next month. You will notice your money in your checking account linked to your CDP account on the first of subsequent month.
You Could Not Get All of the Singapore Financial savings Bonds That You Apply For
Do notice that if you apply for the Singapore Financial savings Bonds, chances are you’ll not get all that you just apply for. Consider this as you’re bidding for an quantity which is decided by the demand and provide of Singapore Financial savings Bonds.
When the rate of interest is low, the demand tends to be decrease relative to historical past, and you may get a extra vital quantity. Nonetheless, if the rate of interest could be very excessive, demand will be so overwhelming that you could be get a small portion you apply for.
For instance, within the August 2022 concern, you possibly can apply for $100,000, however the most allotted quantity per particular person was $9,000 solely. In the event you utilized for $8,000, you’ll get your complete $8,000 allocation.
To evaluate the previous allotment development, you possibly can check out SSB Allotment Outcomes right here.
How do the Singapore Financial savings Bonds Evaluate to SGS Bonds or Singapore Treasury Payments?
Singapore financial savings bonds are like a “unit belief” or a “fund” of SGS Bonds.
However what’s the distinction between shopping for SGS Bonds and its sister, the T-Payments, instantly?
The Authorities additionally points the SGS Bonds and T-Payments, that are AAA rated.
Here’s a MAS detailed comparability of the three:
The primary benefit of the 1-year SGS Bonds and Six-month Singapore Treasury Payments is that you may get a extra vital allocation presently in comparison with the Singapore Financial savings Bonds. Which means if you must earn curiosity yield of $400,000, you get a greater probability to fulfil that with 1-year SGS Bonds and Six-month Treasury Payments.
The short-term rates of interest are getting moderately thrilling, and short-term SGS bonds and treasury payments could also be relevant to complement your Singapore Financial savings Bonds allocation.
I wrote a information to point out how one can simply purchase the Singapore Treasury Invoice and SGS Bonds right here. You’ll be able to learn Methods to Purchase Singapore 6-Month Treasury Payments (T-Payments) or 1-12 months SGS Bonds.
My Previous Worth Add Articles Relating to the Singapore Financial savings Bonds
Learn my previous write-ups:
- This Singapore Financial savings Bonds: Liquidity, Increased Returns and Authorities Backing. Dream?
- Extra particulars of the Singapore Financial savings Bond. Appears to be like like my Emergency Funds now
- Singapore Financial savings Bonds Max Holding Restrict is $200,000 for now. Apply by way of DBS, OCBC, UOB ATM
- Singapore Financial savings Bonds’ Inflation Safety Skills
- Some directions on easy methods to apply for the Singapore Financial savings Bonds
Previous Problems with SSB and their Charges:
Listed here are your different Increased Return, Secure and Brief-Time period Financial savings & Funding Choices for Singaporeans in 2023
It’s possible you’ll be questioning whether or not different financial savings & funding choices provide you with greater returns however are nonetheless comparatively secure and liquid sufficient.
Listed here are totally different different classes of securities to think about:
| Safety Kind | Vary of Returns | Lock-in | Minimal | Remarks |
|---|---|---|---|---|
| Mounted & Time Deposits on Promotional Charges | 4% | 12M -24M | > $20,000 | |
| Singapore Financial savings Bonds (SSB) | 2.9% – 3.4% | 1M | > $1,000 | A very good SSB Instance.” data-order=”Max $200k per particular person. When in demand, it may be difficult to get an allocation. A very good SSB Instance.”>Max $200k per particular person. When in demand, it may be difficult to get an allocation. A very good SSB Instance. |
| SGS 6-month Treasury Payments | 2.5% – 4.19% | 6M | > $1,000 | Methods to purchase T-bills information.” data-order=”Appropriate you probably have some huge cash to deploy. Methods to purchase T-bills information.”>Appropriate you probably have some huge cash to deploy. Methods to purchase T-bills information. |
| SGS 1-12 months Bond | 3.72% | 12M | > $1,000 | Methods to purchase T-bills information.” data-order=”Appropriate you probably have some huge cash to deploy. Methods to purchase T-bills information.”>Appropriate you probably have some huge cash to deploy. Methods to purchase T-bills information. |
| Brief-term Insurance coverage Endowment | 1.8-4.3% | 2Y – 3Y | > $10,000 | A very good instance Gro Capital Ease” data-order=”Ensure that they’re capital assured. Normally, there’s a most quantity you should purchase. A very good instance Gro Capital Ease“>Ensure that they’re capital assured. Normally, there’s a most quantity you should purchase. A very good instance Gro Capital Ease |
| Cash-Market Funds | 4.2% | 1W | > $100 | Appropriate you probably have some huge cash to deploy. A fund that invests in mounted deposits will actively show you how to seize the very best prevailing rates of interest. Do learn up the factsheet or prospectus to make sure the fund solely invests in mounted deposits & equivalents. |
This desk is up to date as of seventeenth November 2022.
There are different securities or merchandise which will fail to fulfill the standards to present again your principal, excessive liquidity and good returns. Structured deposits include derivatives that enhance the diploma of danger. Many money administration portfolios of Robo-advisers and banks include short-duration bond funds. Their values could fluctuate within the quick time period and is probably not very best for those who require a 100% return of your principal quantity.
The returns supplied will not be forged in stone and can fluctuate based mostly on the present short-term rates of interest. You need to undertake extra goal-based planning and use essentially the most appropriate devices/securities that will help you accumulate or spend down your wealth as a substitute of getting all of your cash in short-term financial savings & funding choices.
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Kyith is the Proprietor and Sole Author behind Funding Moats. Readers tune in to Funding Moats to be taught and construct stronger, firmer wealth foundations, easy methods to have a Passive funding technique, know extra about investing in REITs and the nuts and bolts of Lively Investing.
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Kyith labored as an IT operations engineer from 2004 to 2019. Presently, he works as a Senior Options Specialist in Insurance coverage Begin-up Havend. All opinions on Funding Moats are his personal and doesn’t characterize the views of Providend.
You’ll be able to view Kyith’s present portfolio right here, which makes use of his Free Google Inventory Portfolio Tracker.
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