Singapore Savings Bonds SSB May 2024 Yield Climbs to 3.06% (SBMAY24 GX24050X)

Here is a safe way to save money that you have no idea when you will need to use or your emergency fund.

The May 2024’s SSB bonds yield an interest rate of 3.06%/yr for the next ten years. You can apply through ATM or Internet Banking via the three banks (UOB, OCBC, DBS)

However, if you only hold the SSB bonds for one year, with two semi-annual payments, your interest rate is 2.99%/yr.

The one-year SSB yield seems to be heading down, showing a less flat curve.

$10,000 will grow to $13,070 in 10 years.

The Singapore Government backs this bond, and it’s available for you to invest if you have a CDP or SRS account (this includes Singapore Permanent Residents and Foreigners).

A single person can own not more than SG$200,000 worth of Singapore Savings Bonds. You can also use your Supplementary Retirement Scheme (SRS) account to purchase.

You can find out more information about the SSB here.

Note that every month, there will be a new issue you can subscribe to via ATM. The 1 to 10-year yield you will get will differ from this month’s ladder, as shown above.

Last month’s bond yields 3.04%/yr for ten years and 2.95%/yr for one year.

Here is the current historical SSB 10-Year Yield Curve with the 1-Year Yield Curve since Oct 2015, when SSB was started (Click on the chart, and move over the line to see the actual yield for that month):

How to Apply for the Singapore Savings Bond – Application and Redemption Schedule

You will apply for the bonds throughout the month. At the end of the month, you will know how many of the bonds you applied were successful.

Here is the schedule for application and redemption if you wish to sell:

You May Not Get All the Singapore Savings Bonds That You Apply For

Do note that when you apply for the Singapore Savings Bonds, you may not get all that you apply for. Think of this as you are bidding for an amount which is determined by the demand and supply of Singapore Savings Bonds.

When the interest rate is low, the demand tends to be lower relative to history, and you can get a more significant amount. Still, if the interest rate is very high, demand can be so overwhelming that you may get a small portion you apply for.

For example, in the August 2022 issue, you can apply for $100,000, but the maximum allotted amount per person was $9,000 only. If you applied for $8,000, you would get your total $8,000 allocation.

To review the past allotment trend, you can take a look at SSB Allotment Results here.

How do the Singapore Savings Bonds Compare to SGS Bonds or Singapore Treasury Bills?

Singapore savings bonds are like a “unit trust” or a “fund” of SGS Bonds.

But what is the difference between buying SGS Bonds and its sister, the T-Bills, directly?

The SGS Bonds and T-Bills are also issued by the Government and are AAA rated.

Here is a MAS detailed comparison of the three:

The main advantage of the 1-year SGS Bonds and Six-month Singapore Treasury Bills is that you can get a more significant allocation currently compared to the Singapore Savings Bonds. This means that if you need to earn a good interest yield of $400,000, you get a better chance to fulfil that with 1-year SGS Bonds and Six-month Treasury Bills.

The short-term interest rates are getting rather exciting, and short-term SGS bonds and treasury bills may be applicable to supplement your Singapore Savings Bonds allocation.

I wrote a guide to show how you can easily buy the Singapore Treasury Bill and SGS Bonds here. You can read How to Buy Singapore 6-Month Treasury Bills (T-Bills) or 1-Year SGS Bonds.

My Past Value Add Articles Regarding the Singapore Savings Bonds

Read my past write-ups:

This Singapore Savings Bonds: Liquidity, Higher Returns and Government Backing. Dream?
More details of the Singapore Savings Bond. Looks like my Emergency Funds now
Singapore Savings Bonds Max Holding Limit is $200,000 for now. Apply via DBS, OCBC, UOB ATM
Singapore Savings Bonds’ Inflation Protection Abilities
Some instructions on how to apply for the Singapore Savings Bonds

Past Issues of SSB and their Rates:

2015 Oct
2015 Nov
2015 Dec
2016 Jan
2016 Feb
2016 Mar
2016 Apr
2016 May
2016 Jun
2016 Jul
2016 Aug
2016 Sep
2016 Oct
2016 Nov
2016 Dec
2017 Jan
2017 Feb
2017 Mar
2017 Apr
2017 May
2017 Jun
2017 Jul
2017 Aug
2017 Sep
2017 Oct
2017 Nov
2018 Jan
2018 Feb
2018 Mar
2018 Apr
2018 May
2018 Jun
2018 Jul
2018 Aug
2018 Sep
2018 Oct
2018 Nov
2018 Dec
2019 Jan
2019 Feb
2019 Mar
2019 Apr
2019 May
2019 Jun
2019 Jul
2019 Aug
2019 Sep
2019 Oct
2019 Nov
2019 Dec
2020 Jan
2020 Feb
2020 Mar
2020 Apr
2020 May
2020 Jun
2020 Jul
2020 Aug
2020 Oct
2020 Nov
2020 Dec
2021 Feb
2021 Mar
2021 Apr
2021 May
2021 June
2021 July
2021 Aug
2021 Sep
2021 Oct
2021 Nov
2021 Dec
2022 Jan
2022 Feb
2022 Mar
2022 Apr
2022 May
2022 June
2022 July
2022 Aug
2022 Sep
2022 Oct
2022 Nov
2022 Dec
2023 Jan
2023 Feb
2023 Mar
2023 Apr
2023 May
2023 Jun
2023 Jul
2023 Aug
2023 Sep
2023 Oct
2023 Nov
2023 Dec
2024 Jan
2024 Feb
2024 Mar
2024 Apr

Here are your other Higher Return, Safe and Short-Term Savings & Investment Options for Singaporeans in 2023

You may be wondering whether other savings & investment options give you higher returns but are still relatively safe and liquid enough.

Here are different other categories of securities to consider:

Security Type	Range of Returns	Lock-in	Minimum	Remarks
Fixed & Time Deposits on Promotional Rates	4%	12M -24M	> $20,000
Singapore Savings Bonds (SSB)	2.9% - 3.4%	1M	> $1,000	Max $200k per person. When in demand, it can be challenging to get an allocation. A good SSB Example.
SGS 6-month Treasury Bills	2.5% - 4.19%	6M	> $1,000	Suitable if you have a lot of money to deploy. How to buy T-bills guide.
SGS 1-Year Bond	3.72%	12M	> $1,000	Suitable if you have a lot of money to deploy. How to buy T-bills guide.
Short-term Insurance Endowment	1.8-4.3%	2Y - 3Y	> $10,000	Make sure they are capital guaranteed. Usually, there is a maximum amount you can buy. A good example Gro Capital Ease
Money-Market Funds	4.2%	1W	> $100	Suitable if you have a lot of money to deploy. A fund that invests in fixed deposits will actively help you capture the highest prevailing interest rates. Do read up the factsheet or prospectus to ensure the fund only invests in fixed deposits & equivalents.

This table is updated as of 17th November 2022.

There are other securities or products that may fail to meet the criteria to give back your principal, high liquidity and good returns. Structured deposits contain derivatives that increase the degree of risk. Many cash management portfolios of Robo-advisers and banks contain short-duration bond funds. Their values may fluctuate in the short term and may not be ideal if you require a 100% return of your principal amount.

The returns provided are not cast in stone and will fluctuate based on the current short-term interest rates. You should adopt more goal-based planning and use the most suitable instruments/securities to help you accumulate or spend down your wealth instead of having all your money in short-term savings & investment options.

If you want to trade these stocks I mentioned, you can open an account with Interactive Brokers. Interactive Brokers is the leading low-cost and efficient broker I use and trust to invest & trade my holdings in Singapore, the United States, London Stock Exchange and Hong Kong Stock Exchange. They allow you to trade stocks, ETFs, options, futures, forex, bonds and funds worldwide from a single integrated account.

You can read more about my thoughts about Interactive Brokers in this Interactive Brokers Deep Dive Series, starting with how to create & fund your Interactive Brokers account easily.

Author
Recent Posts

Kyith

Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.

Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.

Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.

You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.

His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.

You can read more about Kyith here.

Singapore Savings Bonds SSB May 2024 Yield Climbs to 3.06% (SBMAY24 GX24050X) | Investment Moats (2024)

How to Apply for the Singapore Savings Bond – Application and Redemption Schedule

You May Not Get All the Singapore Savings Bonds That You Apply For

How do the Singapore Savings Bonds Compare to SGS Bonds or Singapore Treasury Bills?

My Past Value Add Articles Regarding the Singapore Savings Bonds

Here are your other Higher Return, Safe and Short-Term Savings & Investment Options for Singaporeans in 2023

References