Singapore SSB Savings Bond March 2023: Ten-Year Yield Up, One-Year Down (SBMAR23 GX23030A)

here is a sure way to save money that you have no idea when you’ll need to use or you emergency fund.

He March 2023SSB’s SSB bonds yield an interest rate of 2.90%/year for the next ten years. You can apply via ATM or internet banking through the three banks (UOB, OCBC, DBS)

However, if you hold SSB bonds for only one year, with two semi-annual payments, your interest rate is 2.76%/year.

The one-year SSB yield appears to be falling, showing a less flat curve.

$10,000 will grow to $12,911 in 10 years.

This bond is backed by the Singapore government and is available for you to invest if you have a CDP or SRS account (this includes Singaporean foreigners and permanent residents).

One person can own no more than SG$200,000 value of Singapore savings bonds. You can also use your Complementary Retirement Scheme (SRS) account to buy.

You can find more information about the SSB here.

Please note that each month, there will be a new edition that you can subscribe to via an ATM. The 1-10 year return you will earn will differ from this month’s ladder, as shown above.

Last monthbond yields 2.97%/year for ten years and 2.84%/year for a year.

Here is SSB’s current 10-year historical yield curve with the 1-year yield curve going back to October 2015, when SSB was launched (click on the chart and hover over the line to see actual performance for that month) :

How to apply for the Singapore savings bond: application and redemption schedule

You will request the bonuses throughout the month. At the end of the month, you will know how many of the bonuses you applied were successful.

Here is the application and redemption schedule if you want to sell:

You have from the second day of the month until approximately the 25th of the month (technically the fourth day from the last business day) to request or decide to redeem the SSB you wish to redeem.

Your bonus will be in your CDP on the 1st of the following month. You will see your cash in your bank account linked to your CDP account on the 1st of the next month.

You may not get all of the Singapore Savings Bonds you apply for

Keep in mind that when you apply for Singapore Savings Bonds, you may not get everything you ask for. Think of this as bidding on an amount determined by the demand for and supply of Singapore Savings Bonds.

When the interest rate is low, demand tends to be lower relative to history and you can get a more significant amount. Still, if the interest rate is very high, the demand can be so overwhelming that you may get a small part of what you ask for.

For example, in the August 2022 issue, you can apply for $100,000, but the maximum amount allocated per person was only $9,000. If you requested $8,000, you would get your total award of $8,000.

To review the past allocation trend, you can take a look at SSB allocation results here.

How do Singapore Savings Bonds compare to SGS Bonds or Singapore Treasury Bills?

Singapore Savings Bonds are like a “mutual fund” or SGS bond “fund”.

But what’s the difference between buying SGS Bonds and their sister T-Bills outright?

SGS Bonds and T-Bills are also issued by the Government and are AAA rated..

Here’s a MAS detailed comparison of the three:

The main advantage of the 1-year SGS Bonds and the six-month Singapore Treasury Bills is that you can get a more significant allocation currently compared to Singapore Savings Bonds. This means that if you need to earn a good interest yield of $400,000, you have a better chance of meeting it with 1-year SGS Bonds and 6-month Treasury Bills.

Short-term interest rates are getting pretty exciting, and short-term SGS bonds and Treasury bills can be applied to supplement your Singapore Savings Bond allocation.

I wrote a guide to show how you can easily buy Singapore Treasury Bill and SGS Bonds here. You can read How to Buy 6-Month Singapore Treasury Bills (T-Bills) or 1-Year SGS Bonds.

My previous value-added articles on Singapore Savings Bonds

Read my previous writings:

1. These Singapore Savings Bonds: Liquidity, Higher Yields, and Government Backing. Sleep?
2. More details of the Singapore Savings Bond. Looks like my emergency funds now
3. The maximum holding limit for Singapore Savings Bonds is $200,000 for now. Apply via DBS, OCBC, UOB ATM
4. Inflation Protection Capabilities of Singapore Savings Bonds
5. Some instructions on how to apply for Singapore Savings Bonds

Past editions of SSB and their rates:

Here are your other highest-yielding, safe, short-term savings and investment options for Singaporeans in 2023

You may be wondering if other savings and investment options give you higher returns but are still relatively safe and liquid enough.

Here are other different categories of values ​​to consider:

This table is current as of November 17, 2022.

There are other securities or products that may not meet the criteria to return their principal, high liquidity and good yields. Structured deposits contain derivatives that increase the degree of risk. Many Robo-advisors and banks cash management portfolios contain short duration bond funds. Their values ​​can fluctuate in the short term and may not be ideal if you need a 100% repayment of your principal amount.

The returns provided are not set in stone and will fluctuate based on current short-term interest rates. You should embrace more goal-based planning and use the most appropriate instruments/stocks to help you build or spend your wealth rather than having all your money in short-term savings and investment options.

If you want to trade these stocks I mentioned, you can open an account with interactive corridors. Interactive Brokers is the leading low cost and efficient broker that I use and trust to invest and trade my shares in Singapore, the United States, the London Stock Exchange and the Hong Kong Stock Exchange. They allow you to trade stocks, ETFs, options, futures, forex, bonds, and funds around the world from a single, integrated account.

You can read more about my views on Interactive Brokers at this deep-dive series from Interactive Brokers, starting with how to easily create and fund your Interactive Brokers account.

Kyith is the owner and sole writer behind Investment Moats. Readers tune into Investment Moats to learn how to build a stronger and stronger foundation of wealth, how to have a passive investing strategy, learn more about investing in REITs, and the practical aspects of active investing.

Readers also follow Kyith to learn how to plan well for financial security and financial independence.

Kyith worked as an IT Operations Engineer from 2004 to 2019. He currently works as a Senior Solutions Specialist at lump-sum wealth advisory firm Providend.

You can see Kyith’s current portfolio herewho uses his Free Google Stock Portfolio Tracking.

Your preferred investment broker is interactive corridorsallowing you to invest in securities from different exchanges around the world, at very low commission rates, no custody fees, almost spot exchange rates.

You can read more about Kyith here.