Internet banking interface of your SRS Operator (DBS/POSB, OCBC, or UOB) for SRS application.
To apply for the CPFIS, go to the main branch of your respective CPF Investment Scheme (CPFIS) agent bank (DBS/POSB, OCBC, or UOB).
General FAQs
SGS are marketable debt securities issued by the Singapore government through the Singapore Monetary Authority (MAS). Treasury bills or bonds can be used to fund these debt products. On the maturity date of the security, the Singapore Government is required to pay the holder of a Treasury bill or bond a predetermined quantity of money. As a result, when you buy SGS, you are lending your money to the Singapore government and receiving interest in return.
You can apply for SGS via DBS iBanking or any DBS or POBS ATM during the securities issue period, as DBS is one of the key dealers for SGS. SGS can only be purchased over the counter at any DBS or POBS branch after the securities tender has concluded.
You can utilize this service as long as you have an active iBanking account and a valid CDP Securities Account.
- Under “Make an Investment,” select “Apply for Singapore Government Securities (SGS).”
A transaction reference number will be generated for your reference once the transaction is completed. You are welcome to print a copy for future reference.
Every Wednesday from 6:00 p.m. to 9:00 p.m., the SGS online application is open. Before the deadline of 9:00 p.m. on Friday, all applications must be submitted.
Your transaction history in your iBanking account, as well as your physical account statement, can be viewed. The bidding for the securities transaction is considered successful as long as there is no complete refund of your application after the tender has closed. The following will be the description for the SGS application:-
There is now no service charge for using DBS iBanking to apply for SGS.
After the application deadline, you will get a full refund of the application fee to your debiting account.
SGS T-Bills and bonds have a minimum investment amount of S$1,000, and you can invest in multiples of S$1,000.
To purchase SGS via iBanking, you must have funds in one of your DBS or POSB accounts.
Please note that the SGS application via iBanking will not be available for Joint-All accounts, Trust-Minor accounts, or MySavings Accounts (MSA).
Is SGS a good investment?
For such investors, SGS bonds should be considered a feasible option. They’re beneficial when you’ve got some spare cash that you can’t risk in higher-risk investments. A normal investor would leave the money in fixed deposits or savings accounts in this situation.
Are SGS bonds a good investment?
SGS bonds are a safe long-term investment instrument that has benefits that are difficult to get in higher-risk investments like stocks. Before making any investments, we strongly advise you to evaluate your investment objectives and conduct due diligence.
How do I use SRS to purchase SGS bonds?
SRS transactions – If you want to invest in SGS bonds in the secondary market with SRS funds, you must link your SRS account to your brokerage account and opt to pay for the transaction with SRS funds. Transaction and brokerage expenses would be incurred if SGS bonds were traded on the SGX.
What exactly is the distinction between SGS and SSB?
Both are government debt products, but the SSB is being introduced to make the SGS more accessible to ordinary investors (mom and pops especially). To put things in perspective, the SSB minimum is $500, whereas the SGS minimum is $1000. The actual method used to compute the SSB rates can be found on the website, and it is based on the average SGS yields from the previous month. SSB’s annual returns for a single month’s issue fluctuate from year to year. Returns on SGS are affected by the economy and the length of time till maturity. The annual returns on SGS bonds are fixed for the life of the bond.
-Types of SGS: 1) Invoices (less than 1 year to maturity) Bonds (No. 2) (more 1 year to maturity, up to 30 years)
Liquidity is a difficult concept to convey, but I’ll do my best. You must sell your bond on the SGX/secondary market for SGS. You can’t sell it if there isn’t a willing buyer. You must also determine whether the selling price is one you are willing to accept, taking into consideration the transaction and brokerage expenses you will incur. Before the transaction is completed, there is a period of waiting. You can redeem your SSB early, but your money will only be refunded to you the next month, thus whether you redeem on July 2 or July 27, you will only get your principle back in August. You’ll also have to pay $2 if you want to redeem your ticket early. Although neither instrument is particularly liquid, I believe SSB is still quite good.
Both are low-risk, with SGS receiving a AAA rating. Because SSB is based on SGS, its rating can also be regarded as AAA.
GILT Mutual Funds
Government Securities Mutual Funds, or GILT, are the most typical way to buy them. When you invest in mutual funds, you must pay an expense ratio, which affects your return. Bonds issued by the Government of India are held by mutual funds. Mutual funds are a good way to diversify your portfolio.
Direct Investment
You will require a Trading and Demat Account with the bank if you do not wish to invest in Mutual Funds and instead want to invest directly in Bonds. For the bids, you can register on the stock exchange. There’s no need to hunt for a stockbroker in this town. You can place an order on the exchange to purchase Bonds and then hold them in a Demat Account.
Government Bonds can also be purchased through a stockbroker. You must participate in non-competitive bidding in order to do so. However, in this situation, the yield is determined by the bids of all institutional investors, and the Bond allocation is determined by the market yield.
The lowest risk is the largest benefit of investing in government bonds. Although there is no chance of default, the interest rate may fluctuate. The longer the duration of a bond, the more susceptible it is to interest rate changes. Before you acquire government bonds, think about the interest rates and the duration. Ascertain that the money invested in the Bond generates a sufficient return over time.
Conclusion
GOI Bonds are a wonderful choice for investors with a low risk appetite who desire a safe, risk-free investment.
ICICI Securities Ltd. is a financial services company based in India ( I-Sec). ICICI Securities Ltd. – ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai – 400020, India, Tel No: 022 – 2288 2460, 022 – 2288 2470 is I-registered Sec’s office. ARN-0845 is the AMFI registration number. We are mutual fund distributors. Market risks apply to mutual fund investments; read all scheme-related papers carefully. I-Sec is soliciting mutual funds and bond-related products as a distributor. All disputes relating to distribution activity would be ineligible for resolution through the Exchange’s investor grievance forum or arbitration mechanism. The preceding information is not intended to be construed as an offer or suggestion to trade or invest. I-Sec and its affiliates accept no responsibility for any loss or damage of any kind resulting from activities done in reliance on the information provided. Market risks apply to securities market investments; read all related documentation carefully before investing. The contents of this website are solely for educational and informational purposes.
How do I purchase SGS bonds with my CPF SA?
To apply for the CPFIS, go to the main branch of your respective CPF Investment Scheme (CPFIS) agent bank (DBS/POSB, OCBC, or UOB). For SGS bonds and T-bills, the minimum bid amount is S$1,000. Decide how much you want to invest in S$1,000 increments.
What is the procedure for selling SGS bonds?
Your securities broker can trade your SGS bonds on the SGX if they are kept in your CDP or SRS account. SGS bonds can also be purchased on the SGX with cash or SRS funds. Transaction and brokerage fees apply when trading on the SGX. 9 a.m. to 5 p.m., with a break between 12 and 1 p.m.
What are the benefits of SGS bonds?
Singapore Government Securities (SGS) bonds have maturities ranging from 2 to 30 years and pay a fixed rate of interest. SGS bonds are divided into three categories: SGS (Market Development), SGS (Infrastructure), and Green SGS (Infrastructure).
What is the procedure for purchasing a HDB bond?
That isn’t to say you can’t be exposed to them. You can do so by purchasing HDB bonds through mutual funds or unit trusts.
After your account has been approved, just transfer cash and use the broker’s site to buy your bonds on SGX.
Hopefully, you didn’t just come to the conclusion that you won’t be buying HDB bonds anytime soon after reading this post.
Although HDB bonds are no longer available, you can still invest in SSBs and other business and government bonds. In some portfolios, SSBs can help to balance risk.