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🗓️ 21092025 1551
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singapore_saving_bonds

What are SSBs?​

  • Government-backed bonds designed for individual investors
  • Risk-free investment fully guaranteed by Singapore Government
  • Step-up interest structure - rates increase the longer you hold

Key Features​

  • Minimum: S$500 (in S$500 multiples)
  • Maximum: S$200,000 per person
  • Tenure: Up to 10 years
  • Early redemption: Anytime without penalty
  • Interest payment: Every 6 months
  • Tax: Interest is tax-free

Interest Rates (Step-up Structure)​

  • Rates determined monthly by MAS
  • Linked to Singapore Government Securities yields
  • Example (Aug 2025 issue):
    • Years 1-3: ~1.82% p.a.
    • Year 10: ~3.09% p.a.
    • 10-year average: ~2.29% p.a.

Why Consider SSBs?​

✅ Pros:

  • Zero risk (government guarantee)
  • Flexible (redeem anytime)
  • Tax-free returns
  • Higher returns for longer holding periods

❌ Cons:

  • Lower returns compared to equities/REITs
  • Opportunity cost if markets perform well
  • Monthly application limits

What Happens After 10 Years?​

  • SSBs automatically mature at the end of 10 years
  • You receive your full principal + final interest payment
  • If bought with cash: Money credited to your regular bank account (withdraw freely)
  • If bought with SRS: Money goes back to your SRS account (still locked until age 62)

SRS Purchase Option​

  • Can use SRS funds to buy SSBs for additional tax benefits
  • Key caveat: Even after SSB matures, proceeds stay locked in SRS until age 62
  • Trade-off: Immediate tax relief vs liquidity (locked for 34 years if you're 28)
  • Best for: Long-term retirement planning only

For detailed SRS information: See supplementary_retirement_scheme

References