Launched in 2015 by the Singapore Government, the Singapore Savings Bonds (SSBs) have long been the go-to investment choice for many Singaporeans.
These bonds are generally regarded by investors as a secure way to beat inflation and make the most of their idle cash.
If you’re looking to diversify your investments, the SSB can be a great complement to your overall portfolio. Read on to learn more about the latest SSB interest rates and alternatives you might also want to consider.
September 2024 SSB Allotment
| Issue code | GX24100E |
| Naming convention | SBOCT24 GX24100H in your CDP statement Interest payment will be reflected as CDP-SBOCT24 in your bank statement GX24100H in your SRS statement |
| Tenor | Approximately 10 years |
| Issue date* | 01 Oct 2024 |
| Maturity date** | 01 Oct 2034 |
| Interest payment dates | Upcoming payment: 01 Apr 2025 Subsequent payments (until maturity): Every 6 months on 01 Oct and 01 Apr |
| Investment amounts | Minimum of $500, and in multiples of $500. The total amount of Savings Bonds you can hold at any one time cannot exceed $200,000 |
* Issue date refers to the date on which the bond begins to accrue interest.
** Maturity date refers to the date on which the bond’s principal is due and will be returned to bondholders.
Latest SSB Interest Rate [September 2024]
| Year from issue date | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Interest % | 2.59 | 2.59 | 2.59 | 2.77 | 2.82 | 2.82 | 2.82 | 2.89 | 2.95 | 2.97 |
| Average return per year % | 2.59 | 2.59 | 2.59 | 2.63 | 2.67 | 2.69 | 2.71 | 2.73 | 2.75 | 2.77 |
Should I Invest in SSB?
Well, it depends.
Investing in SSB is a great and safe way to grow your money, especially since it’s backed and guaranteed by the Singapore Government.
It’s also great because unlike fixed deposits or conventional bonds that charge a fee for early withdrawal, there’s no penalty if you wish to withdraw your investment early; if you’re someone who requires your funds to be liquid, then perhaps the SSB might be a good investment option for you.
On the flip side, the maximum amount allowed you’re allowed to invest is S$200,000 which may be a constraint for some investors. And unlike conventional bonds, SSB are redeemable at the original investment amount. This means investors won’t experience the potential capital gains from bond price appreciation when interest rates decline.
Alternatives to SSB
The SSB are a safe haven for conservative investors who are risk-averse. However, only sticking to SSB might cause you to miss out on higher returns.
Investing in SSB is not the only way to make the most out of your savings; here are some alternatives you may also consider adding to your portfolio.
SSB vs T-Bills
Both T-Bills and SSB are highly liquid and offer great flexibility to investors. Here’s how both investment instruments compare:
| SSB | 10 years | 2.59% (1-year average return) | $500 (maximum of $200,000) |
| SSB | 10 years | 2.77% (10-year average return) | $500 (maximum of $200,000) |
| T-Bill | 6 months | 3.40% (from the 1 August 2024 auction) | $1,000, and in multiples of $1,000 |
| T-Bill | 12 months | 3.38% (from the 25 July 2024 auction) | $1,000, and in multiples of $1,000 |
SSB vs Cash Management Solutions
Cash management solutions are a straightforward and effective way to put your dollar to work and products like Syfe’s Cash+ Guaranteed are designed to maximise your returns.
Cash+ Guaranteed provides you with guaranteed returns on your investment by placing your funds in fixed deposits with banks regulated by the Monetary Authority of Singapore, and unlike the SSB and T-Bills, you don’t have to worry about oversubscription; your money will be invested fully each time you decide to fund your portfolio.
| Tenor | Interest Rates | Minimum Amount | |
| SSB | 10 years | 2.59% (1-year average return) | $500 (maximum of $200,000) |
| SSB | 10 years | 2.77% (10-year average return) | $500 (maximum of $200,000) |
| Cash+ Guaranteed | 3 months | 3.45% | $0 |
| Cash+ Guaranteed | 6 months | 3.2% | $0 |
| Cash+ Guaranteed | 12 months | 2.9% | $0 |
SSB vs High Yield Savings Accounts (HYSA)
If you’re investing in SSB for its liquidity, then perhaps a HYSA might be something you want to explore. HYSAs reward you with higher interest rates than traditional bank accounts, and interest rates are comparable to or surpass SSB when you fulfil certain conditions like salary crediting.
SSB vs Fixed Deposits
Fixed deposits and SSB are both relatively safe investment choices.
The key difference is that fixed deposits offer a predetermined rate that stays constant throughout the investment period. The SSB, on the other hand, offers step-up interest rates that increase over time, meaning the longer one invests in it, the higher the interest income.
Which investment vehicle you choose ultimately depends on your needs; the SSB might be for someone who requires their funds to remain liquid while an investor might go for fixed deposits to lock in the interest rates.
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