Can I buy SSB every month?, What is the difference between SSB and SGS?, singapore savings bonds review, singapore saving bonds interest rate, t-bills singapore, singapore savings bond interest history, singapore government bonds, singapore savings bond login, MAS Singapore Savings Bond,

Guide Singapore Savings Bonds SSB

Key Takeaways

  • Singapore Savings Bonds (SSBs) are a safe, flexible investment backed by the Singapore Government.
  • SSBs offer step-up interest rates, capital preservation, and penalty-free redemption.
  • Minimum investment is SGD $500, accessible through a CDP account and local bank account.
  • SSBs can be redeemed monthly, with no tax on interest income in Singapore.
  • SSBs differ from Singapore Government Securities (SGS) in terms of accessibility, redemption flexibility, and investor focus.


Singapore Savings Bonds (SSBs) offer a secure, accessible investment option, ideal for safeguarding capital and earning step-up interest over time.

In recent years, Singapore Savings Bonds (SSBs) have emerged as a popular choice for individual investors looking for a safe and flexible way to save their money. As a low-risk investment issued and backed by the Singapore Government, they offer a unique combination of features that I find appealing, such as the ability to redeem bonds without penalty before maturity and step-up interest rates that increase over time.

When I invest in SSBs, I’m assured of capital preservation and a predictable return, making them suitable for the conservative portion of my investment portfolio. As the bonds are available to individuals, I find it convenient because they can fit into my long-term savings plan, especially if I aim to save for specific financial goals.

One of the most intriguing aspects of SSBs is their accessibility. Any individual like me with a bank account, a Central Depository (CDP) account, and access to ATMs or online banking services provided by the local participating banks can invest in these bonds. The process is straightforward, and the minimum investment is relatively low, which allows for participation by a broad range of investors, from those just starting out to more seasoned savers.

Here are some of our top picks on:

What Are Singapore Savings Bonds

I’ll clarify that Singapore Savings Bonds are a type of investment offered by the Singapore government, known for their safety and flexibility.

Definition and Overview

Singapore Savings Bonds (SSBs) are fully backed by the Singapore Government, which signifies a safe and principal-guaranteed investment choice for individuals. I invest in them as a way to preserve my capital while earning interest over time. The bonds are designed to be long-term investments, but they offer the flexibility to cash out with no penalty.

Features and Benefits

Key Features:

  • Safe Investment: The bonds are backed by the Singapore Government, ensuring I won’t lose my capital.
  • Accessible: They require a minimum of just SGD $500 to start, making them highly accessible.
  • Flexible Redemption: I can redeem the bonds in any given month before the maturity date without incurring any penalties, which offers liquidity.


  • Step-up Interest Rates: Interest rates increase the longer I hold the bonds, rewarding me for long-term investment.
  • No Market Risk: There’s no need to worry about market fluctuations as the bonds are not subject to market price volatility.

Interest Rate Structure

The interest I earn from SSBs is tied to the performance of long-term Singapore Government Securities (SGS). Interest rates are structured to “step-up” or increase the longer I keep the bonds. I receive payment of interest every six months. Bonds typically have a tenure of 10 years. If I redeem my bonds early, I will receive the average return based on the number of completed years I’ve held them.

Here’s a simplified representation of the step-up interest rate structure:

YearInterest Rate (%)

*The table showcases hypothetical rates for illustration only.

Eligibility Criteria

To purchase Singapore Savings Bonds (SSBs), I must meet the following criteria:

  • I must be an individual, not a corporation.
  • I must possess a valid Singapore National Registration Identity Card (NRIC), which indicates that I am a Singapore Citizen or Permanent Resident. Alternatively, I should have a Foreign Identification Number (FIN), suggesting that I am a non-resident who holds an eligible work pass or student pass.
  • I must be at least 18 years old to buy SSBs. This is to ensure that I am of legal age to enter into a financial agreement.
  • I need to have an individual Central Depository (CDP) Securities account with Direct Crediting Service (DCS) enabled. This account is necessary so that the SSBs can be issued to me electronically, and any interest or redemption proceeds can be directly credited into my bank account.
  • I require a local bank account linked to my CDP account for the purpose of transacting and receiving payments.

Here’s a brief table summarising the requirements:

IndividualityI must be an individual and not a corporate entity.
IdentificationSingapore Citizen/PR with NRIC or non-resident with FIN.
AgeI must be at least 18 years of age.
CDP AccountAn individual CDP Securities account with DCS.
Bank AccountA local bank account linked to the CDP account.

By ensuring that I meet these criteria, I am eligible to invest in SSBs, which are considered a safe and flexible investment option with stable returns.

Buying Singapore Savings Bonds

When I decide to invest in Singapore Savings Bonds, understanding the process steps and deadlines is crucial for a smooth transaction.

Application Process

I can apply for Singapore Savings Bonds through either internet banking or ATMs of the participating banks: DBS/POSB, OCBC or UOB. When applying online, I need to have a bank account with one of these banks and also a valid Central Depository (CDP) Securities account that is linked to my bank account.

Payment Methods

For payment, I have the option to pay directly from my bank account. When applying through an ATM, the required amount will be debited immediately, whereas for internet banking, the funds will be reserved until the application results are announced.

Important Timelines

Applications must be made by the 4th last business day of the month to be included in that month’s bond issue. Results are announced on the 3rd last business day, and if successful, the bonds will be issued on the 1st business day of the following month. My investment amounts and any refund of excess application money will transact by the end of the 2nd business day of the month.

Managing Your Bonds

To effectively manage your Singapore Savings Bonds, you need a clear understanding of how to track their performance, navigate the redemption process, and explore reinvestment options.

Tracking Bond Performance

I maintain a close watch on the performance of my bonds through the SGX website, where updates are available after each business day. It is crucial to regularly review the interest rates, which are typically adjusted every six months, and compare them with other investment options. I also keep track of the Consumer Price Index as inflation can affect the real return on my bonds.

Redemption Process

When I decide to redeem my bonds, I do so via the DBS/POSB, OCBC, or UOB ATMs or through their respective online banking portals. It is essential to submit the redemption request by the 4th last business day of the month to receive the funds by the 1st business day of the following month. A step-by-step guide to the redemption process is outlined below:

  1. Insert ATM card and select ‘More Services’.
  2. Choose ‘Fixed Deposit and Savings Bond’.
  3. Select ‘Savings Bond Services’, then ‘Redemption’.
  4. Enter the amount of bonds to redeem and confirm the transaction.

Redemption requests can also be made online which require similar steps through the bank’s internet banking portal.

Reinvestment Options

Upon redemption, I consider several reinvestment options. These include purchasing new Singapore Savings Bonds, investing in other fixed-income securities, or diversifying into stocks, funds, and other assets. It’s important to compare the current interest rates of new bonds and the risks associated with other investment products before making a decision. My approach involves assessing:

  • Risk tolerance
  • Investment goals
  • Market conditions

I prefer to keep a diversified portfolio, which may involve reinvesting in a combination of assets to balance potential rewards and risks.

Risks and Considerations

Investing in Singapore Savings Bonds (SSBs) is widely considered low-risk, but I am aware of a few considerations before committing my funds. These are the main points I need to be mindful of:

Market Risk: The interest rates of SSBs are pegged to long-term Singapore government securities. If market interest rates rise, the rates of newly issued bonds might be more attractive than the ones I hold. However, I can redeem my bonds without penalty.

Liquidity Risk: While I can redeem SSBs monthly, I must submit a request by the first business day of the month. If I need immediate liquidity, SSBs might not be the optimal choice.

Opportunity Cost: Allocating funds to SSBs means that I forego potential higher returns from other investment vehicles like equities or corporate bonds. I must consider whether the safety of SSBs justifies the lower return.

Inflation Risk: The returns from SSBs might not keep pace with inflation, especially during high inflationary periods. This could erode the purchasing power of my investment over time.

To summarise, I weigh these risks against my financial objectives and risk tolerance. I understand that SSBs offer a secure investment backed by the Singapore government, yet I consider the limitations in terms of flexibility and returns relative to inflation.

Comparisons With Other Investment Options

When considering Singapore Savings Bonds (SSBs), it’s essential for investors to understand how they stack up against other investment vehicles like fixed deposits and government securities. Comparing these options reveals distinct features and risks that cater to different investment objectives.

Compared to Fixed Deposits

Fixed deposits (FDs) offer a guaranteed interest rate for a fixed period. In contrast, SSBs’ interest rates are typically stepped, meaning they increase over time. For instance:

  • Fixed Deposit:
    • Interest: 1.5% p.a. (fixed for the term)
    • Term: 2 years
    • Liquidity: Penalty for early withdrawal
  • Singapore Savings Bond:
    • Interest: Year 1-2.0%, Year 2-2.1% (increases with term)
    • Term: Up to 10 years
    • Liquidity: Redeemable monthly with no penalty

For those who prioritise liquidity and increasing returns over time, SSBs might be preferable.

Compared to Government Securities

Government bonds, such as the ones issued by the Singapore government, are long-term investments with fixed interest rates. Here’s a comparison:

  • Government Securities:
    • Interest: 2.5% p.a. (fixed for the term)
    • Term: 10 years
    • Liquidity: Tradably on the secondary market, but price could be less than face value if sold before maturity
  • Singapore Savings Bond:
    • Interest: Starts at 2.0%, escalating each year up to a capped rate
    • Term: Up to 10 years, but with flexible redemption options
    • Liquidity: Redeemable each month without losing any interest accrued

Investors might find SSBs more attractive if they seek a similar level of safety but with the added benefit of flexible redemption terms.

Tax Implications

When I invest in Singapore Savings Bonds (SSBs), it’s crucial to understand the tax implications tied to these instruments. I find that the interest income earned from SSBs is not subject to tax, which is a significant benefit for me as an investor. This means my interest earnings from SSBs won’t be included in my assessable income.

Moreover, I take note that capital gains are not applicable to SSBs since they are designed to be held to maturity and redeemed at par value. Should I choose to sell my bonds in the secondary market, it is generally uncommon and not the intended use of SSBs; hence, there is no capital gains tax to concern myself with.

Here’s a concise summary:

  • Interest Income: Not taxable in Singapore.
  • Capital Gains: None, as SSBs are redeemed at par value.

When planning my investments, I bear in mind that the tax advantages make SSBs a relatively straightforward addition to my portfolio. This is in contrast to other investments which might have more complex tax considerations. My focus remains on using information like this to make informed choices about where to allocate my financial resources.

Can I Buy Singapore Savings Bonds Every Month?

Yes, you can purchase Singapore Savings Bonds (SSBs) monthly. The Monetary Authority of Singapore (MAS) issues these bonds at the start of every month, which provides you with a regular opportunity to invest. Here’s a summary of my monthly purchasing option:

  • Application Period: Usually, I have the first three weeks of the month to apply for the next month’s issuance.
  • Purchase Method: I can apply through DBS/POSB, OCBC, or UOB ATMs or through the respective banks’ internet banking platforms.
  • Investment Amount: A minimum of $500 and in subsequent multiples of $500.

Here’s what else you need to know:

  • Cut-off: Applications must be submitted before the close of the application period to be considered for that month.
  • Allotment: If the total applications exceed the amount on offer, the bonds will be allocated according to the quantity ceiling first, with the remaining amount distributed proportionately.
  • Results: I’ll know whether I successfully purchased the bonds by the end of the month.

Here’s my purchase guide in steps:

  1. Check: Start of the month, review the latest SSB rates and details.
  2. Apply: Use my preferred participating bank’s channels to apply before the deadline.
  3. Wait: The results will be announced by MAS; I’ll know if I’ve received my desired allocation.
  4. Repeat: If I choose, I can repeat this process each month.

By being informed and following these steps monthly, you can strategically grow your savings with SSBs.

What is the difference between Singapore Savings Bonds and Singapore Government Securities?

When looking at Singapore Savings Bonds (SSBs) and Singapore Government Securities (SGS), there are a few distinct differences to consider. I’ll focus on three key aspects: investment objectives, accessibility, and bond characteristics.

Investment Objectives:

  • SSBs: Aimed at individual investors, they are primarily for long-term savings where I can hold bonds for up to 10 years.
  • SGS: Targeting a broader range of investors including institutions, they serve to finance the government’s budgetary needs and establish a yield curve.


  • SSBs: These are highly accessible for individuals like me, with investments starting from S$500.
  • SGS: These require higher minimum investments, typically S$1,000, which may be less accessible for small, individual investors.

Bond Characteristics:

  • SSBs:
    • Redemption: Provide flexibility as I can redeem them monthly with no penalty.
    • Interest Rates: Step-up interest rates that increase over time.
    • Risk Level: Virtually risk-free, backed by the Singapore Government.
  • SGS:
    • Redemption: These bonds have fixed tenors and early redemption incurs a cost.
    • Interest Rates: Fixed interest rates throughout the bond’s tenor.
    • Risk Level: Also backed by the Singapore Government, but market risks can impact their valuation more significantly due to trading in secondary markets.

In summary, SSBs offer a no-penalty redemption option and are designed for individual investors focusing on saving, while SGS cater to a range of investors with fixed interest returns and are available in primary and secondary markets.