The next best invention by the Singapore government other than 9% GST. Putting your money in a bank account gives a measly 0.1% interest. There are a myriad of other instruments out there that will give you more but the investor has to make a choice between risk, liquidity or returns.

Investing in the stocks market is a high risk, medium liquidity and high returns. It is for the better informed and not for the faint hearted.

Investing in the fixed deposit offers low risk, low liquidity and medium returns. It is suitable for investors who have a good amount of spare cash on hand with no near term use.

Investing in property is medium risk, low liquidity and high returns. Good for investors who have substantial amount of capital and with a long term view.

For the majority of us saving money, most of us would just put the money in regular savings or a fixed deposit with a bank. The government has launched the SSB in 2015 to beat the banks at this fixed deposit game. You will get a tool with low risk, high liquidity and medium returns which is better than FDs.  There are limitations to this tool though. It is capped at $100,000 per individual and the application process to own it is not straight forward which puts many investors out of reach.

These are some of the key benefits of the Singapore Savings Bond (SSB):

  • It is safe. The bond is fully backed by the Singapore government with Triple A rating
  • Guaranteed to get back all capital at any point of exit without any losses
  • Exit on any month, no penalties
  • Starting small with as little as $500
  • Benefits of saving for retirement while being prepared for rainy day
  • Diversify range of investments

Some of the key product features:

  • Term 10 years
  • Issuer : Singapore government
  • Interest rates benchmarked against the SGS the month before ranges from 1%-2%
  • Interest payments every 6 months
  • Minimum $500 and maximum $100,000 per individual
  • New issuance every month
  • Exempted from tax

Steps to buy the SSB:

  • A bank account with one of the local banks such as DBS , UOB or OCBC
  • An individual CDP securities account linked to the bank with DCS(Direct Crediting Service)
  • Apply through the bank ATMS or internet banking
  • Application starts 6pm on 1st business day up to 9pm last 4th business day of the month. If you are uncertain, check the calendar here

The easiest way to do all these would be to walk into a bank and ask for assistance.