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A Comprehensive Guide to Investing in Singapore Savings Bonds (SSB) 2024

singapore savings bond
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The Singapore Savings Bonds (SSB) are a safe and flexible investment option for individual investors in Singapore. They provide an opportunity for you to grow your savings over time, with returns that increase as you hold the bonds for a longer duration. These bonds are backed by the Singapore Government and can be redeemed at any time without penalty, ensuring you have access to your funds when desired. 

For Singaporean investors, SSBs play an important role in diversifying investment portfolios and managing risk. As a low-risk investment, SSBs provide a stable source of passive income that can supplement your other investment strategies. Moreover, SSB interest rates are typically influenced by the Monetary Authority of Singapore’s (MAS) Core Inflation data, ensuring that your investment keeps up with the cost of living.

With the MAS reporting that the Core Inflation eased to 3.4% year-on-year in August 2023, down from a peak of 5.5% in January, the role of SSBs becomes even more pivotal. As inflation has decelerated across a wide variety of goods and services, from non-cooked food to travel-related expenses, the steady and predictable returns from SSBs provide a safeguard against the erosive effects of inflation, making them an indispensable asset for astute investors.

Comparison Between SSB, Regular Bank Savings Accounts, and Fixed Deposits

When considering where to save or invest your money, you may compare the Singapore Savings Bond (SSB), regular bank savings accounts, and fixed deposits. Let’s take a closer look at the differences in terms of liquidity, accessibility, and returns.

It’s worth noting that SSB interest rates can fluctuate, so prospective and current bondholders should always stay informed of any updates or changes.

Benefits of Investing In SSB

Investing in Singapore Savings Bonds (SSB) offers several compelling advantages for potential investors. Here are some reasons why one might consider investing in SSB:

  • Safety: SSBs are backed by the Singapore government, making them one of the safest investments available. Given the strong credit rating and economic stability of Singapore, the risk of default is virtually non-existent.
  • Step-Up Interest: Unlike traditional bonds that offer a fixed interest rate, SSBs provide a step-up interest system. This means the longer you hold onto the bond, the higher the interest you earn, which can be especially beneficial for long-term investors.
  • Liquidity: One of the standout features of SSBs is their flexibility. Investors can redeem them at any time without any penalty, making it an easily accessible source of funds in case of emergencies. However, it’s worth noting that if you redeem before the next interest payout, you will only receive the accrued interest up to that point.
  • No Capital Loss: Even if market conditions change, you won’t suffer from capital loss with SSBs. When you decide to redeem your bond, you will get back the principal amount in full.
  • Competitive Returns: SSBs generally offer interest rates that are higher than regular bank savings accounts. While they might not yield as much as more aggressive investment vehicles, their safety and predictability make them a compelling choice for conservative investors.
  • Diversification: For those building an investment portfolio, SSBs offer an excellent opportunity for diversification. They can act as a stable counterbalance to more volatile investments.
  • Accessibility: The minimum investment for SSBs is low, making it accessible to many individuals. Plus, buying and managing SSBs can be done easily through various channels, including banks and brokerages.
  • No Hidden Fees: There are no maintenance fees or hidden charges associated with holding SSBs. However, there might be a small fee when applying or redeeming them, but it’s relatively insignificant.

While SSBs may not offer the highest returns compared to riskier investments, their combination of safety, liquidity, and competitive interest rates makes them a valuable addition to many investment portfolios. They are particularly suitable for those looking for a low-risk way to grow their savings over time.

Analysis: SSB vs Fixed Deposits

When considering where to invest or save your money, both Singapore Savings Bonds (SSB) and fixed deposits come up as attractive options. Here’s a detailed analysis comparing the two:


Both SSB and fixed deposits offer competitive returns, but the nature of these returns differs. SSB provides certainty on the interest rates for the entire 10-year period, eliminating any guesswork or the need to monitor frequently changing rates. Fixed deposits, on the other hand, can occasionally offer promotional rates that are significantly higher than regular rates. However, these promotional rates come with caveats, are often temporary, and may not be available upon rollover after maturity.


SSB shines in terms of flexibility. With the ability to redeem in any month without penalties and in multiples of $500, investors have a lot more control over their investment. 

Fixed deposits are more rigid, with set terms ranging from a few months to 3 years. Early withdrawal often attracts penalties, which could be in the form of foregone interest or additional fees.

Terms & Conditions

While fixed deposits might dangle attractive promotional rates, they usually come with conditions. Investors might need to deposit a minimum amount of fresh funds or even purchase other investment products to qualify. When the fixed deposit matures, it’s rolled over at the regular rate, and there’s no certainty that a promotional rate will be available then. 

SSB, in contrast, provides a clear picture of the interest rates for a decade, offering predictability.

Minimum Investment

SSBs have a low entry point, allowing individuals to start investing with just $500. This makes it accessible for many, regardless of their financial capability. On the other hand, fixed deposits require a minimum deposit amount between S$20,000 and S$50,000 depending on the financial institution.


Fixed deposits are short-to-medium-term instruments with durations ranging from a few months to 3 years. SSBs are designed for a longer horizon, with interest rates structured for a 10-year term.

Past Issuance Results of Singapore Savings Bond

Issue Month/YearJan 2023Feb 2023Mar 2023Apr 2023May 2023Jun 2023Jul 2023Aug 2023Sep 2023
SSB Interest Rate (Average 10-year return p.a.)3.26%2.97%2.90%3.15%3.07%2.81%2.82%2.99%3.06%
Bonds Wooden Blocks with coins stacked behind

Specific Information on Current SSB Issuance

Check out the illustration below for the complete details of this month’s bond

SBSEP23 (GX23090F)
(Source: MAS)
  • Application Periods: The application for SBSEP23 (GX23090F) is currently open (up to 26 October 2023). It’s essential for interested investors to submit their applications within this window to secure their bonds.
  • Redemption of Previous Bonds: For those looking to redeem their SSBs from August, the initial redemption date was also set for 1 September 2023. But like the issue date, the redemption will now be processed on 4 September 2023, given the public holiday disruption.
  • Investment Amount: Minimum of S$500 (in multiples of S$500). The total amount of SSB an individual can hold at any one time must not exceed S$200,000.

Interest Rate and History of the SSB

History of the SSB Interest Rate

In-Depth Analysis of Singapore Savings Bonds

Singapore Savings Bonds (SSB) are a type of government-backed bond that provides a safe and flexible investment option for Singaporeans. They are designed to cater to long-term savings needs and ensure that your investment amount is always secure with minimal risk. SSBs are fully backed by the Singapore Government, which means you can be confident that your capital will not be lost.

These bonds have a unique interest rate structure, which increases over time – the longer you hold onto them, the more interest you accumulate. The interest rates are pre-determined at the time of issuance and are a combination of fixed and variable rates based on the prevailing market conditions at issuance.

Risks And Benefits Analysis of Investing in SSB

When considering investment opportunities like the Singapore Savings Bonds (SSB), understanding the associated risks and benefits is crucial. Let’s delve into a comprehensive analysis of the SSB based on the factors you’ve highlighted:

Pros Cons
Redemption and withdrawal processFlexibility: Investors can redeem their bonds at any month, offering easy access to their funds.

Full Interest Payout: Upon redemption, investors are entitled to the accrued interest up to the point of redemption, ensuring no loss of earned interest.

No Penalties: There are no penalties for redeeming the bond, making it a hassle-free process for investors.
Foregone Future Interest: If investors redeem their bonds early, they’ll miss out on the potential higher interest that comes with longer-term holding due to the step-up interest feature of SSB.
Safety and risk factorsGovernment-backed: SSBs are backed by the Singapore government, which boasts one of the highest credit ratings globally. This essentially eliminates the risk of default.

Capital Preservation: Your initial investment amount is protected. When you decide to redeem your bond, you’re assured of getting back your full principal amount.
Not the Highest Returns: While SSBs are safe, they might not offer the highest returns compared to other riskier investment vehicles.

Inflation: The real value of returns could be eroded if the inflation rate surpasses the bond’s interest rate.
Investment amounts and limitsLow Minimum Investment: SSBs are accessible to most investors, with a minimum investment amount of just $500.

Regular Investment Opportunity: Investors can invest in new issues of SSB every month, allowing for a dollar-cost averaging approach, which can reduce the impact of market volatility.

High Maximum Limit: An individual can hold up to $200,000 in total SSBs, giving ample room for sizable investments for those looking to park large amounts in a safe asset.
Opportunity Cost: By locking in money in SSBs, investors may potentially miss out on higher returns from other investment opportunities. Especially for those who approach the maximum limit, this could mean significant amounts of money are tied up in lower-yield assets.

Liquidity Needs: SSBs can be redeemed anytime. However, if an investor consistently redeems and re-invests, the process might not be as seamless as keeping funds in a regular savings account, especially when immediate liquidity is required.

Applicability of CPF and Taxation in SSB Investment

Your CPF funds cannot be used to invest in SSBs. Instead, CPF savings are meant to support your retirement, healthcare, and housing needs, whereas SSBs are an additional avenue for personal investment.

Furthermore, the interest earned from Singapore Savings Bonds is exempt from taxation. This means that you can enjoy the benefits of your investment growth without worrying about additional taxes eating into your returns.

Analyzing for SSB investment

Step-by-Step Guide to Investing in SSB

Prerequisites for SSB Application

For Cash Applications

  • A bank account with DBS/POSB, OCBC, and UOB.
  • An individual CDP Securities account with Direct Crediting SErvice activated

For SRS Application

  • If you don’t have one, visit one of the three SRS operators (DBS/POSB, OCBC, and UOB) to open an SRS account.

Investment Procedures

Cash Applications: Via ATM or Internet Banking Portals

  • Apply through DBS/POSB, OCBC, and UOB internet banking or ATMs, and OCBC’s mobile application. You will need your CDP account number when you apply.
  • You can also apply through internet banking under Singapore Government Securities
  • A non-refundable S$2 transaction fee will be charged by the bank.

SRS Application: Via Internet Banking Portals

  • Apply through internet banking portals of your SRS operator.
  • A non-refundable S$2 transaction fee will be charged by the bank.

Post-Application Procedures and Allotment

Following a successful SSB application, you will receive various notifications. These include:

  • SMS or email notifications: After submitting your application, you will receive a confirmation message from your bank.
  • CDP allotment notice: If your application is successful, you will receive an allotment notice from CDP via mail, which will include details about your bond allotment.
  • Interest payments: The first SSB interest is paid 6 months after the bond is issued, and the amount will be credited directly to your bank account linked to your CPD account or your SRS account. You will receive a notification from CDP when interest is paid.
  • Bond redemption: If you wish to redeem your SSBs before the maturity date, submit a redemption request via your bank’s internet banking portal or ATM. The principal amount and any accrued interest will be credited to your bank account on the second business day of the following month.

Final Word

Singapore Savings Bonds offer a safe and flexible investment option for individual investors. With a maturity period of up to 10 years, you can enjoy the benefits of step-up returns for longer-term holdings.

Key Takeaways

  • Singapore Savings Bonds are issued by the Monetary Authority of Singapore, providing secure and low-risk investment opportunities.
  • These bonds have a term of 10 years, allowing you to enjoy increasing returns the longer you hold onto them.
  • At the end of the term, your principal and the last interest payment will be automatically credited to your bank account.
  • Savings Bonds are non-transferable, and you can invest in them through a step-by-step guide provided by the Monetary Authority of Singapore.

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