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Singapore Savings Bond short term still more rewarding.

Wednesday, June 6, 2018

I blogged about the Singapore Savings Bond (SSB) earlier this year and shared how it made sense for me to park some of my spare cash in it.

It is considered near money (with no penalty for early withdrawal) but still not as near as money in a savings account or stored in a moon cake tin at home.







Who stores money in a moon cake tin at home, you asked?

Alamak, if you asked that, you must be new to my blog.

OK, I know.


Bad AK! Bad AK!








Easy to apply with internet banking.


Anyway, I did not put in the max $100,000 which each Singaporean is allowed to have in the SSB earlier in the year because I suspected that with interest rates rising, the coupon could be higher later on.

It was 1.55%.

Now, 6 months later, it is 1.72%.






After receiving a chunk of change from reducing my investment in ComfortDelgro, I want to lock up some of the gains in my war chest.

So, I will be putting some money in the SSB again.

With this, still, I would not be maxing out the allowance of $100,000 per Singaporean.

The closing date for application is 26 June 2018.

Plenty of time.







For more on why I like the Singapore Savings Bond now, read the related post below.

Related post:

Singapore Savings Bond (Jan 2018).

11 comments:

LKH said...

Last few issues, one can only get 12k to 15k of SSB each time. Not easy to hit the 100k quota, you have to buy 6 or 7 times.

AK71 said...

Hi LKH,

It is only logical that people would know a good thing when they see one. ;)

Nick said...

Another option to consider is the 4.35% Astrea IV Class A-1 Secured Bonds Issue

Henry said...

Quite a hassle if one has to buy and sell so many times. Every round transaction costs $2. recent issues, the amount allocated is getting smaller. Not surprise if amount drops below S10K in this coming issue.
Previously I remember that only Singaporeans are allow to buy. Recently, I heard open to Foreigners as well. Not sure if this is true? But the clause for Singaporeans only seems to have disappear from their website. :)

tong said...

did u nibble starhub at under 186?

AK71 said...

Hi Nick,

PK Jan says...
Is this bond a safe place to park some funds for passive income har?

Astrea IV private equity bonds' retail tranche interest rate set at 4.35% pa – Business Times

THE Azalea Group, a Temasek unit specialising in investments in private equity, has launched its first PE-backed bond for retail investors, with a smaller-than-expected retail tranche of S$121 million.

Dominic N S Teo says...
What would you think of the Astrea IV PE Bonds @ 4.35%p.a.?

AK says...
I dunno what they are investing in. If in doubt, I stay out.

Siew Mun Kwan says...
Is a Fund of Funds... in bonds. 2 layers of intermediaries

AK says...
Opaque. I scared of the dark. :p

AK71 said...

Hi Henry,

With coupons more attractive than what banks can offer for short term fixed deposits, it is no wonder the SSB is attracting more attention.

I believe the SSB is still for Singaporeans only as I have not heard anything to the contrary.

AK71 said...

Hi tong,

I have not looked at Starhub for a while as my preference is to accumulate SingTel in the Telco space.

Siew Mun said...

I have been subscribing monthly to SSB since March and will continue as long as the coupons gives me a good return. Starting 1 Sep, I will receive monthly coupons for the next 10 years. Consistent monthly income for next 10 years is a very powerful paradigm shift for me. Next, I park these unused coupons ($) in a high interest savings account to compound the returns, which is another paradigm shift. I am using Citibank Maxigain a no hoops savings account which gives me 0.8x1 month SIBOR +0.1% (step up monthly with max of 1.2%) which can amount to about 2.1% pa if 1 month SIBOR is 1.25%. Currently 1 month SIBOR is at 1.39%. I foresee SIBOR rates is going up until end 2019 in tandem with fed rate. Downside of this savings account is limited to max of $150K and minimum of $15K. These monies are my emergency fund and war chest while waiting for Mr Market to turn bear.

AK71 said...

Hi Siew Mun,

Thanks for sharing this.

The coupons are definitely getting more attractive.

Money should go to where it is treated best. :)

AK71 said...

Reminder:

For those who are interested, remember that it closes tomorrow.

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