Latest Singapore Savings Bonds Issue – Your Investment Guide

Singapore Savings Bonds are issued monthly by Monetary Authority of Singapore (MAS). Each SSB pays step-up interest rates that are determined at issue. Its interest rates tracks the interest rates of Singapore Government Bonds SGS.

This monthly feature guide provides consolidated coverage of the latest Singapore Savings Bonds issue as they get announced. Do bookmark this page so that you can refer to every month.

This month, we look at Singapore Savings Bonds Mar 2018 (GX18030S).

Key Details at a Glance

The latest issue is Singapore Savings Bonds Mar 2018 announced on 1 Feb 2018. Information of this issue is provided in the MAS Public Notice circular. Key information is summarised and presented below.

  • Bond ID: GX18030S
  • Tranche size: S$150 million
  • Issue date: 1 Mar 2018
  • Maturity date: 1 Mar 2028
  • Interest payment dates: 1 Mar, 1 Sep every year

Coupon Table

Coupons
Average Returns
Year 11.421.42
Year 21.551.48
Year 31.731.57
Year 41.921.65
Year 52.081.73
Year 62.231.81
Year 72.381.89
Year 82.531.96
Year 92.692.04
Year 102.872.11

Application Timeline You Must Know

You can start applying for this month’s SSB through POSB/DBS, OCBC, UOB ATMs and internet banking platforms from 1 Feb 2018.

  • Deadline for application: 23 Feb 2018 9pm
  • Allotment results: 26 Feb 2018 after 3pm

To learn more about bond application, do head our page on Singapore Savings Bonds: Everything You Need to Know. If this is your first time applying or you are considering whether to apply, you are strongly encouraged to read it before application!

Are Interest Rates Attractive?

Comparison with Previous SSB Issues

Short term rate has tapered whereas long term rate has increased. Singapore Savings Bonds Mar 2018 offers the 2nd highest Year 1 coupon of 1.42% pa among the 6 recent issues. It also offers higher Year 10 coupon of 2.87% pa compared to 2.75% pa provided by SSB Feb 2018.

The graph below illustrates interest rates (in %pa) offered by recent 6 SSB issues. Only the Year 1, Year 5 and Year 10 coupon trends are plotted. The set of data points used to plot this graph is also shown in the following table.

Singapore Savings Bonds Historical Interest Rate Mar 2018

IssueOct 2017Nov 2017Dec 2017Jan 2018Feb 2018Mar 2018
Year 11.191.211.261.321.551.42
Year 21.341.361.521.581.591.55
Year 31.551.551.681.711.671.73
Year 41.781.751.821.821.771.92
Year 52.011.962.021.991.912.08
Year 62.252.182.262.222.072.23
Year 72.502.412.502.432.262.38
Year 82.762.642.732.652.442.53
Year 93.022.872.972.862.612.69
Year 103.283.103.193.062.752.87

In addition to coupons, the average return is an important metric for a long-term bond investor. The graph below illustrates average returns (in %pa) offered by recent 6 SSB issues. Similarly, only the Year 1, Year 5 and Year 10 trends are plotted. The set of data points used to plot this graph is also shown in the following table.
Singapore Savings Bonds Historical Average Returns Mar 2018

IssueOct 2017Nov 2017Dec 2017Jan 2018Feb 2018Mar 2018
Year 11.191.211.261.321.551.42
Year 21.261.281.391.451.571.48
Year 31.361.371.481.531.601.57
Year 41.461.461.571.601.641.65
Year 51.571.561.651.681.691.73
Year 61.681.661.751.761.751.81
Year 71.791.761.851.851.821.89
Year 81.901.861.951.951.891.96
Year 92.011.962.062.041.972.04
Year 102.132.072.162.132.042.11

To see a wider range of data points, do head to our section on Singapore Bonds Interest Rates where you will find the entire history of SSB interest rates and average returns. MAS also has an official platform on SSB Interest Rates for bond investors to search out information on issued SSBs (interest rates, average returns and bond details). You can check it out too.

Comparison with Fixed Income Products

Of interest to many investors is how SSB compares with fixed income products such as High Interest Savings Accounts, Fixed Deposits and Singapore Government Bonds SGS. We have compiled the rates offered into a table that you will find below for comparison. It is updated monthly to reflect latest rates.


In the short term, SSB Mar 2018 offers higher 1-year interest rate (1.42%pa) compared to common Fixed Deposits offered by banks. High Interest Savings Accounts do better though. They provide higher deposit interest rates with the caveat that savers carry out additional banking transactions. You would be familiar with those transactions if you have UOB One, OCBC 365, DBS Multiplier or BOC SmartSaver accounts. Another key thing to note is that the attractive rates offered by these Savings Accounts are subject to change any time.

Over the longer term, SGS bonds offer slightly higher interest rates (around +0.2%) compared to SSB Mar 2018. However, they are subject to market movement and there capital appreciation or depreciation whenever you choose to redeem before maturity.

Year
Product12510
SSB Mar 2018 *1.42%1.48%1.73%2.11%
SGS Bond 2Y1.58%
SGS Bond 5Y1.94%
SGS Bond 10Y2.30%
UOB FD 10months **1.20%
SCB FD 1year **1.25%
Maybank FD 1year **1.40%
Maybank FD 2years **1.55%
OCBC FD 1year **1.18%
UOB One ***Up to 2.43%
OCBC 360 ***Up to 3%
DBS Multiplier ***Up to 3.5%
BOC SmartSaver ***Up to 3.75%

*Average Returns; **Promotional rate; ***Requires banking or investment transactions.

  • OCBC: up to 1.18% for 12-month deposit (From 1 Feb)
  • UOB: up to 1.20%pa for 10-month deposit (1 Feb to 28 Feb 2018)
  • Maybank: up to 1.40%pa for 12-month deposit, up to 1.55% pa for 24-month deposit (From 1 Feb)
  • Standard Chartered: up to 1.25%pa for 8-month deposit (1 Feb to 28 Feb 2018)

How Do I apply for Singapore Savings Bonds?

To subscribe to SSB Mar 2018, you can do so through POSB/DBS, OCBC, UOB ATMs and internet banking platforms. You will also need a Central Depository (CDP) Account. MAS will deliver the Singapore Savings Bond to you through this channel. Note that a $2 processing fee will be charged.

You should also check out your bank’s website on Singapore Savings Bonds for more information and specific application instructions.

Final tip: SSBs are announced at the start of the month but only issued at the start of the following month. Interest therefore only starts to accrue then. Do not apply for the bonds early. Instead, apply for them on or close to deadline day to maximise utilisation of your funds.

 

Be the first to comment

Leave a Reply