Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund.
The September 2019’s SSB bonds yield an interest rate of 1.95%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS)
However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.65%/yr.
$10,000 will grow to $11,962in 10 years.
This bond is backed by the Singapore Government and its available to Singaporeans.
A single person can own not more than SG$200,000 worth of Singapore Savings Bonds. You can also use your Supplementary Retirement Scheme (SRS)account to purchase.
You can find out more information about the SSB here.
Note that every month, there will be a new issue you can subscribe to via ATM. The 1 to 10 year yield you will get will differ from this month’s ladder as shown above.
Last month’s bond yields 2.01%/yr for 10 years and 1.68%/yr for 1 year.
Here is the current historical SSB 10 Year Yield Curve with the 1 Year Yield Curve since Oct 2015 when SSB was started (Click on the chart, move over the line to see the actual yield for that month):
What is this Singapore Savings Bonds? Read my past write ups:
Past Issues of SSB and their Rates:
Here are more information about bonds and whether there are worth the investment!
Thanks for reading.
Once again, this article is a guest post and was originally posted on kyith‘s profile on InvestingNote.
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