With rising yields and a 10-year rate at 3.48%, SSBs are a lucrative option for long-term gains.
SINGAPORE: Investors looking for stable returns have reason to celebrate as Singapore Savings Bond (SSB) yields rise to 3.16% for the latest series. This marks the fourth consecutive increase, making SSBs a compelling option for those seeking low-risk investments.
The new SSB series, which opened on Sept 4, offers a 3.05% interest rate in the first year. The standout feature is its 10-year average return of 3.48%, surpassing the previous series’ 3.06%. Applications are open until Sept 26, with bonds issued on Oct 2, and S$800 million available—up from the previous series’ S$600 million.
A Rising Trend
SSB yields have been steadily climbing since hitting a low of 2.81% in May, reaching 3.47% last November. These increases are tied to shifts in the Federal Reserve’s interest rate policies, which influence Singapore government bond yields. Experts, like Gerald Wong of Beansprout, anticipate further rises in SSB yields as government bond rates continue their upward trend.
How to Apply for SSBs
Applying for SSBs is straightforward:
Internet Banking & ATMs: Use DBS/POSB, OCBC, or UOB portals and ATMs.
Mobile App: OCBC customers can apply via the mobile app.
Supplementary Retirement Scheme (SRS): Apply through your SRS account or operator’s portal.
Operating Hours:
Monday to Saturday: 7 am to 9 pm (excluding public holidays).
On opening day: 6 pm to 9 pm.
Requirements:
A CDP account for cash applications or an SRS account for SRS applications.
CPF funds are not eligible.
Why SSBs Are a Smart Choice
Offering competitive returns and near-zero risk, SSBs are ideal for investors aiming to lock in long-term gains. With yields rising in tandem with government bonds, now is the time for savvy investors to seize the opportunity.
