Singapore Savings Bonds (SSB) are one of the more popular investment options for Singaporeans, as they often provide a greater return than bank fixed deposits.
It’s also one of the simplest ways for risk-averse investors to offset Singapore’s general inflation.
For comparison, the Monetary Authority of Singapore (MAS) reported Core Inflation of 2.1 percent year on year (y-o-y) in December 2021, up from 1.6 percent y-o-y in November 2021.
Overall inflation, as measured by the Consumer Price Index (CPI), increased to 4.0 percent year over year in December 2021, up from 3.8 percent in November 2021.
How can I purchase bonds on the Singapore Exchange?
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.
In Singapore, how do I purchase security bonds?
How to Purchase. Apply through DBS/POSB, OCBC and UOB ATMs, online banking, or through OCBC’s mobile app. SRS investors can apply using the internet banking interface of their SRS Operator.
Is it possible to lose money on savings bonds?
There’s also no need to be concerned about the savings bonds losing value. The Treasury Department guarantees that a Series I bond’s redemption value for any given month will not be less than its previous month’s value. If you need to cash in the bond before it matures, it won’t lose value.
In Singapore, what kind of bonds are available?
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 redeeming my OCBC Singapore savings bond?
You can redeem your Savings Bonds at any time before the bond matures, and there are no penalties for doing so. To redeem, send your request through the following methods by the deadline: DBS/POSB, OCBC and UOB internet banking or ATMs, and OCBC’s mobile application are also good options for cash investing.
What is the purpose of Singapore government bonds?
- The CDP will notify successful candidates by mail. The SRS operator will notify you about SRS investments.
- Any unused funds will be returned by the end of the second last business day of the month for unsuccessful or partially filed applications.
You will receive the principal amount on the second business day of the following month for both maturity and redemption. Interest on the redemption amount that has accrued must be paid.
- Savings bonds can only be transferred in certain circumstances, such as when the bondholder dies.
- They can’t be traded on the SGX, bought or sold on the open market, or pledged as collateral.
Note: If a bondholder dies, his or her Savings Bonds may be transferred to the rightful beneficiaries under the terms of the person’s will or the intestacy laws. The individual restriction of S$200,000 does not apply to such allowed transfers.
What is the best way to trade Singapore government bonds?
Cash transactions On the Singapore Exchange, investors can purchase and sell SGS bonds on the secondary market (SGX). You’ll need a securities trading account with a brokerage business as well as an individual CDP securities account to do so.