{"id":639,"date":"2023-03-31T06:17:33","date_gmt":"2023-03-31T06:17:33","guid":{"rendered":"https:\/\/www.wealthfor.us\/article\/?p=639"},"modified":"2023-07-11T01:22:34","modified_gmt":"2023-07-10T17:22:34","slug":"singapore-government-bonds-ssb-vs-sgs-vs-t-bills","status":"publish","type":"post","link":"https:\/\/www.wealthfor.us\/article\/singapore-government-bonds-ssb-vs-sgs-vs-t-bills\/","title":{"rendered":"Singapore Government Bonds: SSB vs. SGS vs. T-Bills"},"content":{"rendered":"

With the recent increase in interest rates, government bonds have become one of the favorite investments among investors. We break down the different Singapore government bonds so you can decide which suits your portfolio best.<\/span><\/p>\n\n

Singapore Savings Bonds (SSB)<\/h2>\n

SSB is a special type of Singapore Government Securities issued and backed by the Singapore government. SSB has a tenor of 10 years, with the interest rate increasing yearly. Like a regular bond, investing in SSB guarantees your initial principal and the interest payout.<\/span><\/p>\n

The unique feature of SSB is <\/span>its flexibility to redeem at any month<\/i><\/b>[1]<\/sup><\/b> without penalty<\/i><\/b>. You even <\/span>receive the accrued interest upon withdrawal<\/i><\/b>. <\/span>[1]<\/sup><\/span>You will receive the requested amount and the accrued interest by the second business day of the following month.<\/span><\/p>\n

SSB has a low minimum investment of $500, but it has a maximum total investment cap of $200,000 per individual.<\/span><\/p>\n

A new Savings Bond will be issued monthly according to the <\/span>issuance calendar<\/span><\/a> provided by MAS.<\/span><\/p>\n

\"Singapore
Example of SSB step-up interest rates over the ten years duration<\/figcaption><\/figure>\n

 <\/p>\n

Key features of SSB<\/span><\/h3>\n\n\n\n\n\n
\"SSB<\/td>\nLow Risk<\/b><\/p>\n

Fully backed by the Singapore Government with an AAA credit rating. Your initial principal and interest are guaranteed.<\/span><\/td>\n<\/tr>\n

\"SSB<\/td>\nLong-term<\/b><\/p>\n

Invest for up to 10 years with interest that increases over time. Interest rates for the whole ten years are locked in at the start.<\/span><\/td>\n<\/tr>\n

\"SSB<\/td>\nLiquid<\/b><\/p>\n

You can exit your investment in any given month with no penalties. You even receive the accrued interest.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Term<\/span><\/i><\/td>\n10 years<\/span><\/td>\n<\/tr>\n
Minimum investment<\/span><\/i><\/td>\nMinimum $500, in multiples of $500<\/span><\/td>\n<\/tr>\n
Maximum investment<\/span><\/i><\/td>\nMaximum total holding of $200,000 overall<\/span><\/td>\n<\/tr>\n
Availability<\/span><\/i><\/td>\nCash, SRS<\/span><\/td>\n<\/tr>\n
Interest payout<\/span><\/i><\/td>\nEvery six months<\/span><\/td>\n<\/tr>\n
Redemption<\/span><\/i><\/td>\nEvery month ($2 admin fee)<\/span><\/p>\n

Processed by the second business day of the following month.<\/span><\/td>\n<\/tr>\n

Secondary market trading<\/span><\/i><\/td>\nNo (you can redeem every month without penalty)<\/span><\/td>\n<\/tr>\n
Interest rate<\/span><\/i><\/td>\n“Steps up” yearly.<\/span><\/p>\n

At issuance, interest rates for the entire 10-year term are locked in.<\/span><\/td>\n<\/tr>\n

Ideal for<\/span><\/i><\/td>\nMoney that needs to be semi-liquid. This could be the money you expect to use in the short to medium term. Remember, there is a lead time of up to 1 month for redemption.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

To get the latest SSB offering, check the MAS page here<\/a>. If you are interested in applying for SSB, you can follow our step-by-step guide on how to buy SSB<\/a>. To redeem, we also have a step-by-step guide on how to redeem SSB<\/a>.<\/span><\/p>\n

 <\/p>\n

SGS Bonds<\/h2>\n

Medium to long-term<\/i><\/b> Singapore government bonds issued and backed by the Singapore government, which has the highest credit rating of AAA given by major rating agencies. SGS Bonds pay a fixed interest rate and have maturities between 2 to 50 years.<\/span><\/p>\n

There are three categories of SGD Bonds:<\/span><\/p>\n