Singapore Savings Bond at 2.71% for 10 years and what I’m doing about it.

The Singapore Savings Bond (SSB) interest for the June 2022 tranche is 2.71% if you hold it for 10 years. The detailed break down of the yearly interest is as shown below.

 

The last time the 10 years Singapore Saving Bond interest rate goes above the CPF Ordinary Account (OA) interest of 2.5% is in 2018.

At this interest rate, it is currently more attractive than where I’m having my emergency funds now. So what I will be doing is to withdraw my money from my Singlife and Singtel Dash endowment account, giving me around 1 to 1.5% currently, and putting them into the SSB. I will also be redeeming my previous tranches of SSB and putting them back into SSB at higher interest rate.

With the interest rate higher than OA, I will also start looking at withdrawing from my OA through my housing loan repayment monthly. I might not do it now since OA still offers automatic annual compounding as compared to SSB where you will need to compound it manually with a $2 transaction fee. But this is something I will definitely do if the SSB interest rate goes sufficiently high.

Also it is likely that the SSB interest rate is going to increase over the next few months due to US raising interest rate to combat inflation. Hence I will break up my funds into a few tranches and buy into the SSB over the next few months. Since I might not get the full amount I subscribe to this month depending on the allocation amount and demand, it will likely take a few months to fully deploy my emergency funds into SSB anyways.

If you also want to park some of your funds into the Singapore Savings Bond, you can apply for them with one of the 3 local banks POSB/DBS, UOB or OCBC in Singapore via internet banking. Do note that You will need a CDP securities account linked to that bank account. You can find out more about the Singapore Savings Bond here.

Thanks for reading and do support me on my referral page. Stay Safe and Happy Savings!