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How To Buy The Singapore Savings Bonds

We take a step-by-step look at how you can apply for the Singapore Saving Bonds, and a few things about it that you need to know.

If you think that Singapore Savings Bonds should be part of your portfolio, here is what you need to know before applying for them.

1. Applying Through The 3 Local Banks

Application for the SSB can be made through one of the three local banks (DBS/POSB, UOB. OCBC). To apply for it, you will need a bank account with these banks, and to then link them up to your CDP Account. Yes, the same one that you use for your stock investing.

After you have linked the account, you can apply for the SSB via ATMs or through Internet Banking. Money used for the application of the SSB will be deducted from your bank account. Investment starts at a minimum of $500, and increase in multiple of $500 and up to $50,000 per application for this issue.

Do note that a non-refundable $2 transaction fee will be charged per application request.

2. Waiting For Your Allotment 

A total amount of $1.2 billion will be issued for the first tranche of SSB this month. Since each Singaporean is entitled to hold a maximum of $100,000 per person, there is a possibility that there may be an over-subscription to the SSB, especially in the first few months.

In the event that there is an over-subscription, you may not get the full amount that you applied for. In this case, there will be a cut-off amount (e.g. $20,000) based on the number of people who applied, and the amount they invest in.

The cut-off amount is the amount that each person will get for the tranche. If your application is equal or below the cut-off amount (e.g. $20,000 or less), you will receive the full amount that you applied for. If it is above the cut-off amount, you will receive either the cut-off amount ($20,000), or $500 more than the cut-off ($20,500).

Any excess cash above what you applied for will be returned to your bank account.

3. Receiving Your Interest 

Interest are payable every 6 months. This will automatically be credited to your bank account. Unless you wish to redeem your bond, no further action is required on your part.

Interest Rates

The thing that most people are keen to know about is the interest rates given for the SSB. Here is a look at it.

Interest rates

Year from issue date






Interest, %






Average return per year, %*







Year from issue date






Interest, %






Average return per year, %*







A few observations. For starters, the rates offered are pretty reasonable, especially when you consider the fact that they are risk-free and fully backed by the Singapore Government. If you hold the bond for a period of 5 years or more, you can expect to get an average interest rate of about 2.01 – 2.63%.

In addition, the SSB is also extremely flexible, since it allows you to redeem it at any point in time with a one-month notice. The fact that there is no lock-in period allows you to maintain your liquidity.

The SSB cannot be traded on the secondary market. That means you can only buy and sell it directly from the issuer, the Singapore Government. In our opinion, investors should look at it more as a long-term saving tool, rather than an investment instrument.

Read Also: 4 Reasons Why You Should Be Buying The Singapore Savings Bonds

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