Jun 25, 2017

Cory Diary : Singapore Savings Bonds experience ( SSB )

This is the website of SSB. http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx
Every month SSB will update with new tranche for purchase with appropriate rates as below picture.

Purchase is simple online. I have tested few times using DBS website. Application is $2 each time.
Dividends credited to my DBS saving account after 6 months automatically.

To sell is not hard too as I have tested it literally. However do note your transaction and amount each time you purchase or withdraw as there is no easy access to SSB historical records that you can tell in the website when you sell. Bank statements in the web is backdated to 2 months so provide no helps too. However I do get paper mail statement as equity trades done.

The highest effective interests rate is only if you hold it for 10 years and is quite attractive considering is "risk-less". However if you withdraw like I did, the rates will be reduced per table of the link above and still not bad. There is a limit of 100K even if I want to put more unfortunately.

Unlike traded bond, there is no capital gain or loss. True capital protected in the sense less sovereign risk. Due to SSB nature, in my next dividend and investment reports, I will move them under Cash/Fixed deposit category instead. This will better reflect the right yield and portfolio investment equity returns. Meaning my equity annual dividends report will exclude SSB dividends.

I plan to maximize my allocation surely. It beats Fixed Deposits hand down.



  1. Forgot to add, I can withdraw any month but there is processing lead time. It will be easier to track amount to wait for full 6 months after dividends distribution but is not required as the dividends will be adjusted if less than 6 months.

  2. Hopefully the yield will increase. Yield has been pretty flat since last year.

  3. I hope so too. The good thing about this scheme is we can withdraw and apply for $2 provide you have cash flow in your saving account. But maybe only worth to do it early in the game and let the compounding do it's work unless the spike in rate is high enough.

  4. Hi CoryBB, BOC gives u 1.3% for 200K leh. FD with a 6+6 term structure.

    SSB rate quite low. sigh.

    1. BOC first you need to open an account then 1.3% fixed for 6+6 and required 200k. And if you withdraw within 6 each not sure the penalty. After that 1 year ? Once money go in, very troublesome to get out. What will the rates be like after ?

      SSB on 3rd year is above 1.3%. And 10 years average is 2.12% for this month.
      I would park emergency and warchest fund here. Seems much higher. Furthermore you can withdraw anytime if wish for higher rates later.

    2. simi BB lah ... now then i notice... :P