Complete Guide To Buying Singapore Savings Bonds (SSB) [2025 Edition]

The popularity of the Singapore Savings Bonds (SSB) has grown and waned alongside the interest rates it offers. When it was first issued in 2015, the 10-year interest rates were higher than 2.5% p.a. – which made it a relatively interesting investment.

As the short-term and long-term interest rates gradually narrowed from 2015 to 2020, SSBs may have fallen out of favour. As global interest rates crashed due to the COVID-19-led economic downturn, the SSB interest rate dipped to less than 1% p.a. for its full 10-year tenor.

Global interest rates then spiked due to inflation. This led to the SSB 10-year interest rates rising to around the 3.5% p.a. range.

Today, with interest rates on the decline, the latest SSB for August 2025 is offering 2.29% p.a. over its 10-year tenor – paying 1.82% in the first three years, and gradually rising to 3.09% in the 10th year.

Read Also: 6 Month Vs 1-Year Treasury Bills: Understanding The Differences And Choosing The Right Option

What Are Singapore Savings Bonds (SSBs)?

Singapore Savings Bonds (SSBs) are issued every month by the Singapore government via the Monetary Authority of Singapore (MAS). It was first offered to retail investors in October 2015. The SSBs have a maximum tenor of 10 years, usually paying a step-up interest return each year to reward investors who hold it for a longer period. Both Singaporeans and foreigners can invest in SSBs.

We have to invest in multiples of $500 when buying SSBs, and can purchase up to a maximum investment limit of $200,000 worth of SSBs. We have to pay a $2 transaction fee for each SSB application. Similarly, when we divest our SSBs, we also need to withdraw in multiples of $500, and it does not have to be for the full amount we invested. When we redeem our SSBs, the proceeds will be credited into our account on the 2nd business day of the following month. We still receive a pro-rated interest for any withdrawals we make rather than lose all interest payments for any period. We can redeem our SSB investments at any time without any penalties, except for a $2 redemption fee each time.

SSBs pay interest returns every six months, on the first business day of the month. If no redemptions are made, the principal and last interest payment will be automatically credited to our bank account, which is linked to our CDP account, after the 10-year maturity period. The interest payments we receive from the SSBs are tax-free.

Read Also: 5 Reasons Why It Makes Sense To Invest In Singapore Savings Bonds (SSBs)

Within the 10-year period, the interest rates we receive on the Singapore Savings Bonds “step-up” every year to give us a better return for each year we leave our money in the SSB. For example, in the latest August 2025 (SBAUG25 GX25080X) SSB issuance, individuals had to apply by 28 July 2025, 9pm and its annual returns are:

*At the end of each year, on a compounded basis

Source: Singapore Savings Bond Website

Interest rates tend to rise the longer we remain invested. As we can see in the example above, the latest August 2025 SSBs are paying a flat return of 1.82% per annum for the first 3 years, and only step-up marginally from the 4th to 10th year. Throughout its 10-year tenor, the average return is 3.29%.

Read Also: Should You Invest In The SSB For Its 1-Year Interest Rate Or 10-Year Average Return?

Singapore Savings Bonds (SSBs) Returns Reflect The Interest Rate Environment

We chart both the 1-year and 10-year SSB interest rates since it was launched in October 2015 to depict the movement of interest rates for the investment.

In the initial months, the average 10-year interest returns hovered around the 2.5%-mark, which is what our CPF Ordinary Account (OA) also paid as a floor rate.

In the subsequent year, the 10-year rate dropped to under 2.0%, reaching a low of 1.75% in September 2016. From there, interest rates gradually recovered to the 2.5% and 2.6% range in 2017 and 2018 respectively. However, from 2019 to 2021, the average 10-year interest rate trended lower and hit the lowest point in July 2020 – offering a mere 0.80% per annum.

In 2022, due to rising inflation beyond the target level, the US central bank (the Fed) began to reverse its monetary policy by raising interest rates. The SSB has also started to reflect the general interest rate environment, with long-term (10-year average returns) rates rising to an all-time high of 3.47% in December 2022.

The 10-year rates then hovered around the 3%-mark until the 2nd half of 2024. Since then, interest rates have fallen quite sharply. Today, the first-year interest rate is 1.82%, and the 10-year average interest rate is 2.29%.

Read Also: How Is The Interest Rate Derived For The Singapore Savings Bonds (SSB) And Why It Is Increasing?

Why Should People Consider Investing In The Singapore Savings Bonds (SSBs)?

Even though SSBs tend to generate lower returns than stocks in the long term, there are still a few good reasons to invest in them:

#1 Risk-Free Investment

Backed by the government of Singapore, which has been accorded a strong credit rating by international credit rating agencies, including Moody’s, S&P, and Fitch, the Singapore Savings Bonds is virtually risk-free. This means investors do not have to worry about any capital loss or interruptions in the payment of interest rates.

Read Also: 6 Investments In Singapore That Provide Guaranteed Principal And Returns

#2 Flexibility To Keep Investments For The Long-Term Or Re-Invest In The Short-Term

Investing in the SSB gives us great flexibility to earn the market yield in the short-term, as well as lock-in a slightly higher yield in the long-term. For example, if we invested in the August SSB issue, we would be able to start earning a short-term 1-year interest of 1.82% p.a.

At the same time, we are locking in a longer-term interest return of 2.29% p.a. without any obligations to stay invested. If interest rates drop steeply, we can always stay invested and enjoy a higher return that we’ve locked in. If interest rates rise steeply, we retain the flexibility to sell our SSBs, get our funds by the 2nd business day of the following month, and reinvest at a higher interest rate.

In contrast, the latest 6-month T-bills paid 1.85% p.a. – which is marginally higher than the current SSB issue. However, we can only hold on to the interest rate for 6-months. If rates go down steeply in the next 6 months, we would have to reinvest at the lower interest rates.

#3 Diversification For Our Investment Portfolio

The Singapore Savings Bonds is a government bond. This means we can diversify our investment portfolio if it is made up of just stocks, or even if it includes bonds issued by companies, which are not risk-free.

#4 High Liquidity

Even though they’re termed as bonds, we retain a high level of liquidity by being able to withdraw our investments at any time, with no penalties other than a $2 redemption fee. We will receive our money by the 2nd business day of the following month after we make redemptions.

This gives us the ability to earn higher interest rates on our emergency funds and also any savings we are not sure when we will need to use (for wedding, renovation, holiday… etc). We can do this without losing much liquidity as the SSBs can be redeemed within one month and without risk of losing any of its value due to market movements in interest rates.

An added perk is that we can always withdraw these funds whenever we see a higher interest rate being paid on subsequent SSB issues, or if we spot an opportunity in the financial markets.

The same cannot be said of most bonds, even other Singapore Government Securities, which are traded at market value (which can move higher or lower) if we need to withdraw from our investments early. These can be significantly different from our principal sum, especially in a low-interest rate environment with unpredictable longer-term interest rate movements.

#5 We Can Invest From As Little As $500

Also mentioned earlier, we can start investing in the Singapore Savings Bonds from as little as $500. Many corporate bonds in the market require us to invest $100,000 or even $250,000 in them. Even for other Singapore Government Securities, we still need to invest from $1,000. Many retail bond products also tend to require slightly higher investments of $1,000 or $2,000 and above.

Read Also: Step-By-Step Guide To Bond Investing In Singapore

#6 Regular Interest Payments

With interest payments every six months, we have visible cashflows, and we can plan our expenses around these interest payments. This is especially relevant if we are using it to supplement our retirement income.

We can also view our Savings Bonds portfolio on a single dashboard by logging in with our Singpass from the Singapore Savings Bond website. This allows us to know how much we have invested and keep track of our interest payments.

#7 Invest Your Supplementary Retirement Scheme (SRS) In SSBs

Since December 2018, we can invest in the Singapore Savings Bonds using our Supplementary Retirement Scheme (SRS). This is one great way to use the Singapore Savings Bonds, especially if we are risk-averse investors.

The reason is that we can gain dollar-for-dollar tax relief for every dollar we contribute (up to $15,300 per year for Citizens and PRs and up to $35,700 for foreigners) to our SRS. Furthermore, if we do not invest our SRS funds, we only receive a nominal interest rate of 0.05%. To earn a better interest return but keep liquidity and take a very low amount of risk, we can invest our SRS funds in SSBs.

Read Also: Singapore Savings Bonds (SSB) Vs CPF Top Up. The Benefits And Drawbacks Of Both Options

5 Cons To Consider When Investing In SSB

#1 Lower Interest Returns

If we invested in the August 2025 issuance, we stand to receive a return of 1.82% p.a. in the first year. While we understand that this is risk-free and very safe, it is a very low interest return.

In fact, it is marginally lower than the return that we can get on the 6-month T-bills, which paid 1.85% p.a.

We may also prefer slightly riskier retail bonds, such as the Astrea private equity bond series. Currently, the Class A-1 bonds for Astrea 8 on the Singapore Exchange in July 2024 has a yield-to-maturity of 3.77% p.a.

We can also choose to invest in even higher-risk equity investments, such as the STI ETF, which has a 10-year return of 5.62% p.a. or the S&P 500 ETF, where the historical returns over a 10-year period have been over 13.5%.

Of course, when investing in higher-risk products, we need to understand our timeline and that the risks involved are different as well.

#2 Higher Interest Rates Only Come At The Tail-End

Due to the interest rate step-up feature, we tend to only get higher interest rates only at the tail-end of the 10-year SSB tenor. For example, in the latest August 2025 SSB launch, we earn a first-year interest of 1.82%, and rates gradually go up. In the 10th year, we earn 3.09% p.a. Nevertheless, spread across the 10-year tenor, the average interest still adds up to 2.29% p.a.

#3 Bond Issues Give Different Interest Rates Every Month 

The current August 2025 SSB pays 2.29% p.a. on average over its 10-year tenor. The January to Jul 2025 SSB issuances paid out an average 10-year average interest rate of between 2.49% and 2.97%. This means we may find ourselves investing at a slightly lower or higher interest rate depending on the actual month that we start our investment.

Those who invested in July 2025 are earning 2.49% p.a. over 10 years, and 2.06% p.a. in the first year. However, those who invest in the August 2025 SSB will only earn 2.29% p.a. over 10 years, and 1.82% p.a. in the first year.

As mentioned, though, we can always redeem our SSB investments if it makes financial sense (at a $2 fee) to invest in newer SSB issues if they are paying a better overall interest rate.

#4 $200,000 Cap On Our SSB Investments

There is a limit of $200,000 that we can invest in the Singapore Savings Bonds.

At the same time, it is also possible we might not get our full requested allotment depending on the demand during each particular tranche. This has been more relevant in previous tranches as interest rates hiked to nearly the 4%-mark.

#5 Allotment is Not Guaranteed

When we apply for SSBs, there’s no guarantee that we will get the full allotment that we applied for. For example, in the June and July 2024 SSB launch, MAS offered a maximum of $1 billion and $1.1 billion respectively. However, applications were more than the maximum amount, coming in at $1.61 billion and $1.26 billion. That means those who applied may not have gotten the full application amount – which may result in missing out one month of interest returns as well as potentially receiving a lower return in the following month.

More recently, this happened in March 2025, when MAS offered a maximum of $500 million. A total application of $638,716,500 worth of SSBs came in. This meant that not everyone received their full application amount – with the quantity ceiling at $58,500.

How To Start Investing In The Singapore Savings Bonds?

Step 1: What We Need Before Applying

Before we even start investing in the Singapore Savings Bonds, we need to ensure that we have a bank account with one of the three local banks in Singapore – DBS/POSB, OCBC or UOB.

We also need to have a CDP account that is linked to our bank account through direct crediting service (DCS). This allows us to purchase the Singapore Savings Bonds, via ATMs, and will be stored in our CDP account. The CDP will also process the applications, interest payments and redemptions of our Singapore Savings Bonds investments.

Read Also: Step-By-Step Guide To Opening A Stock Brokerage Account In Singapore

Step 2: Apply Via ATMs or Internet Banking

Once we ensure we have everything in Step 1, we can proceed to apply for subsequent Singapore Savings Bonds issues via the ATMs or internet banking services of DBS/POSB, OCBC or UOB. When we do this, we need to have our CDP account number on hand.

Once we apply, the money will be directly deducted from our bank account.

We can only apply from 6 p.m. on the 1st business day of the month to 9 p.m. on the 4th last business day of the month for each Singapore Savings Bonds issue.

Once we apply, we will also see that a $2 non-refundable transaction fee will be applied on our application. This fee, which also applies to IPO applications, will apply to all Singapore Savings Bonds applications and withdrawals.

If we want to invest our SRS funds, we can do so via the internet banking portal of our SRS operator.

Step 3: Check For Your Singapore Savings Bonds Allotment

On the 3rd last business day of the month, MAS will allocate new Singapore Savings Bonds to those who successfully applied.

We may also receive a lower allotment of the Singapore Saving Bonds than what we have applied for if there is an oversubscription. For example, in the March 2025 SSB, a maximum of $500 million worth of Singapore Savings Bonds was offered. However, the total amount applied was over $635 million with the quantity ceiling fixed at $58,500. Hence, we may not get our full applied amount.

If we do not receive the amount of Singapore Savings Bonds that we applied for, the excess cash will be refunded to our bank account.

The Singapore Savings Bonds will be issued on the 1st business day of the month. We will be notified via mail of the amount of Singapore Savings Bonds allotted to us, or we can verify it online through the CDP Internet service, or by calling CDP at 65357511.

Step 4: Receive Interest Returns

After six months, we will receive our first interest payment on our Singapore Savings Bonds. This will be automatically paid into our bank account, linked to our CDP account. We will continue receiving interest payments every six months after that.

For the August 2025 SSB, the first interest payment date will be on 1 February 2026, and subsequent payments will be every six months on 1 August and 1 February each year.

We can consider investing in different issues to smoothen out the difference in interest returns on the particular Singapore Savings Bonds issue, as well as receive interest payments on a staggered basis so we can either reinvest the same way or use for our monthly expenses.

How To Redeem Singapore SSB Investments?

As mentioned several times, we can redeem our SSB investments by paying a $2 transaction fee. Each month, we can redeem our SSBs from the 1st business day, 6 p.m., until the 4th last business day, 9 p.m. We can only redeem in multiples of $500, and up to the amount we invested. Of course, if we are invested in several SSBs at the same time, we can redeem in multiple tranches.

Cash investments in SSBs can be redeemed via our internet banking on DBS/POCB, OCBC or UOB. We can redeem via mobile banking on OCBC as well. SRS investments in SSBs can be made online via our SRS operator.

We will receive our SSB investments, as well as any accrued interest (or pro-rated interest), by the 2nd business day of the following month. This means it can take up to one month for us to redeem our SSB investments. It also means we do not lose out on interest returns by redeeming our SSB investments earlier. We can calculate this accrued interest on the MAS website.

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