We have received the latest release of SSB Jun 2025, featuring the first-year rate of 2.20% and the 10-year average rate of 2.56%. Many investors may be disappointed by this latest offering because the rates are significantly lower than last month’s offering. Is this month’s SSB still a good option for parking our cash?
SSB Jun 2025
Unfortunately, the latest SSB June 2025 continues the trend of lower rates, with the 10-year average rate falling significantly to 2.56%. The first-year rate is also relatively low at 2.20%.
If you have followed the SSB rates over the past few years, you may find this month’s rates disappointing. However, if you are yet to fill in your desired allocation and are interested in this SSB Jun 2025 offering, please take note of the following application timeline:
How Competitive Are These Rates?
In short, these rates are not competitive compared to the recent higher rates we have been used to. Here is the historical SSB interest rate chart:
This month’s SSB rates are the lowest in the past few years. The last time we saw lower rates was in mid-2022. Based on the chart data, we can say that this SSB Jun 2025 is unfortunately not that competitive.
How About Future Rates?
If you have yet to fill your desired SSB allocation, it can be interesting to guess where the interest rate may go.
Although it is impossible to predict with perfection, we can take a cue from the Fed itself on where they expect the interest rate to be this year. From their latest FOMC meeting, the Fed expects two rate cuts in 2025.
The market also expects up to four rate cuts in 2025:
With the Fed and the market expecting interest rates to decline further throughout this year, we can expect SSB rates to continue declining at the pace of these rate cuts.
How about next month’s SSB rates? Let’s look at the current 10-year Singapore government bond yield:
The chart shows that the yield has declined recently, with the latest rates hovering slightly lower than the SSB Jun 2025 rates. Should the bond yield remain at this level, we can expect next month’s SSB to be slightly lower than this month’s offering.
Given that we are still early in the month, the estimate may not be that accurate, so please take it with a grain of salt 🙂
What Do We Do?
We have been using SSB to park our short to medium-term cash allocation. We love SSB because it allows us to lock in the higher rates for up to ten years, while still having access to our cash every month with accrued interest.
Because we anticipated that interest rates would decrease, we migrated all of our T-bill holdings to SSB to lock in the higher rates for a significantly extended period.
Since SSB Jun 2025 offers lower rates than our SSB holdings, we will not be participating in this month’s offering.
Will you be applying for this month’s SSB? If so, you may follow our step-by-step guide on how to buy SSB.
