Singapore Savings Bonds SSB May 2018 offers coupon yields of 1.65% pa to 3.00% pa from Year 1 until Year 10. Investors can enjoy an average return of 2.39% pa when the bond is held to maturity in 2028. Details are summarised below.
- Bond ID: GX18050E
- Tranche size: S$200 million
- Issue date: 2 May 2018
- Maturity date: 1 May 2028
- Interest payment dates: 1 May, 1 Nov every year
SSB May 2018 Application Timeline
You can start applying for this month’s SSB through POSB/DBS, OCBC, UOB ATMs and internet banking platforms from 2 Apr 2018.
- Deadline for application: 25 Apr 2018 9pm
- Allotment results: 26 Apr 2018 after 3pm
Singaporeans, PRs and foreigners can apply for the Singapore Savings Bonds. You will need to be above 18 years old and possess a Central Depository (CDP) Account. Head to MAS Singapore Savings Bonds website to learn more.
Latest News Regarding Singapore Savings Bonds
Singapore Savings Bonds are Getting Very Popular
Interest rates are rising, therefore SSBs are becoming more attractive over bank saving accounts. The chart below highlights the increasing popularity of SSBs.
The most recent SSB Apr 2018 was again oversubscribed. This is the 2nd time in 3 months that an issue of the Singapore Savings Bonds was oversubscribed (SSB Feb 2018, issued 2 months ago, was also oversubscribed). Applications for SSB Apr 2018 amounted to S$261 million compared to offer size of S$150 million; it was oversubscribed by a record 1.7x.
MAS is Increasing in Offer Size to S$200 million
To meet the rising demand for Singapore Savings Bonds, MAS is increasing the issue size to S$200 million, up from S$150 million. This is in response to strong demand from the recent 3 issues. It is a welcomed move as more Singaporeans and investors can tap into this low-risk bond product. You can read more about this in the MAS announcement here.
MAS has Removed S$50,000 Issue Limit for Singapore Savings Bonds
MAS has removed the issue limit of S$50,000 for each SSB issue since SSB Apr 2018. However, the overall individual limit of S$100,000 still applies. This means that investors can apply for up to S$100,000 in any SSB issue subject to the individual limit. There is also no change in the allotment mechanism where smaller applications are filled first when the SSB issue is oversubscribed. More details of this new policy change can be found in MAS SSB official circular and Business Times coverage of this issue limit change for Singapore Savings Bond.
Key Benefits of Singapore Savings Bonds
Singapore Savings Bonds are Safe
Singapore Savings Bonds, introduced in Oct 2015 by MAS to encourage Singaporeans to save, is a low-risk, sovereign-backed bond asset. The Government of Singapore, who issues and backs the bonds, holds the highest AAA credit rating from major credit rating agencies.
The credit ratings can be examined at MAS’s site about Govt of Singapore’s Credit Rating and TradingEconomics’s page on consolidated credit ratings for Singapore.
Singapore Savings Bonds Are Not Traded
SSBs are not traded so there is no capital depreciation nor appreciation. Therefore, bond investors do not need to worry about rising interest rates affecting the value of their SSBs. The Government of Singapore will purchase any redeemed bonds at par value together with the accrued interest.
Singapore Savings Bonds are Liquid
Singapore Savings Bonds are redeemable in any given month without commission charges.
Singapore Savings Bonds Help to Diversify Investment Portfolio
Bonds are essential in any complete investment portfolio to insulate it from extreme return volatility.