We have the latest offering for SSB July 2024: 3.26% for the first-year rate and 3.30% for the ten-year average. The first-year rate is the same as the previous month’s offering, while the 10-year average is slightly lower. These are some of the best rates we have seen recently.
SSB July 2024 Details
This SSB July 2024 offering is highly competitive. Although its 10-year average rate is slightly lower than last month’s, this month’s offering is still one of the highest in recent times. If you did not get your desired allocation last month, this month may be another chance for you!
If you are an investor looking to preserve your capital, this SSB offers an almost risk-free investment with up to a 3.30% interest rate. It is awesome! If you are interested, do apply before 25 June 2024. Please take note of the following application timeline:
Is SSB July 2024 Competitive?
In short, yes, but let’s look into the historical data to see if it is really competitive:
The chart shows that this month’s offering is at one of the highest levels in recent times. The Fed and the market have been expecting the interest rates to start reversing toward the end of this year. If you agree with this sentiment, you may consider locking in these higher rates for much longer (up to 10 years) with SSB. Additionally, with SSB, you can do partial or full redemption every month without penalty. You even earn the accrued interest.
Will Next Month’s SSB Stay Competitive?
SSB’s offering usually tracks the government bond yields. Although it is difficult to determine precisely where interest rates are heading in the future, we can at least look at the market expectation to see where the market thinks the rates are heading:
With the market expecting only one rate cut this year toward the end of the year, we expect that next month’s SSB will still offer decent rates. However, there is a good chance they will be slightly lower.
With the recent rise in offering rates, SSB finally had the quantity ceiling again last month at $24,000. If you have a higher desired allocation, to make sure you can get your full desired allocation, it would be a good idea to apply across several months even though you think the next month’s offering could be higher.
What Would We Do?
We have parked our short-term cash into SSB for a while. We even migrated some of our T-bills allocation to SSB to lock in the higher rates for up to ten years. Because this month’s offering is still quite competitive, we will participate in this SSB July 2024 offering, likely by swapping our older SSBs yielding lower than what this month’s SSB can offer.
Will you be applying for this month’s SSB? If so, you may follow our step-by-step guide on how to buy SSB.
