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The Singapore Savings Bond (SSB) was 2.44x oversubscribed in October which led to almost every applicant who applied for more than $10,000 getting only $10,000.
As the Singapore Savings Bond this month in November has a higher 10 year average yield of 3.47%, oversubscription is very much expected.
I had $38,000 set aside for voluntary contribution to my CPF account in 2023.
With $10,000 of Singapore Savings Bond bought in October, I had $28,000 left.
As my plan is still to channel money originally meant for voluntary contribution to my CPF account into Singapore Savings Bond as long as the bond's 10 year average yield is 3% or higher, I submitted an application for $14,000 this month.
Why not the full $28,000 which was the refund from October's application?
Well, two reasons:
1. With interest rates still rising, could December's Singapore Savings Bond offer a higher 10 year average yield?
2. I expected the oversubscription rate to be even higher and, so, we might even see a lower than $10,000 allotment per applicant in November.
No point applying for more.
Yes, I prepared myself mentally for some of the money to be refunded which I think is prudent so as not to set myself up for disappointment.
So, what's the result?
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| Source: MAS. |
Surprise!
Although oversubscribed, it was less so compared to the preceding month's SSB.
Yes, my expectation for an even higher oversubscription rate didn't materialize which isn't a bad thing.
Allotted: $14,000.
Amount refunded: $0.
So, I got 100% of what I applied for!
Bullseye!
Jackpot!
So lucky!
This also means that I was right not to apply for more because if I had applied for $28,000, I would most probably have ended up with $14,000 allotted anyway.
Now, of the $38,000 earmarked for CPF voluntary contribution, I still have $14,000 available.
Am I applying for next month's Singapore Savings Bond?
As long as the 10 year average yield of Singapore Savings Bond is higher than 3%, I am interested.
What about money earmarked for topping up the CPF-MA?
The CPF-MA pays 4% p.a.
So, unless the Singapore Savings Bond offers a 10 year average yield of 4%, I will still top up my CPF-MA.
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Related post:
1. SSB 2.44x oversubscribed.
2. 3.47% 10 year average yield!
3. SSB or CPF? It is a no brainer.
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5 comments:
Hi AK
I wonder what's their criteria for allotment. I put in 15k and was allotted only 10k
Hi AK,
my bad, i must be getting old, saw the wrong number refunded. I got 14.5k :)
Hi Yv,
Oh, I understand getting old.
No worries.
You are one of the lucky ones who got $14.5K instead of $14K.
Gong xi gong xi! :D
CPF MA BHS 2023 is $68,500. I can top up $2,500 which is lesser than what I expected.
https://www.cpf.gov.sg/member/infohub/news/news-releases/cpf-interest-rates-from-1-january-2023-to-31-march-2023-and-basic-healthcare-sum-for-2023
Hi Siew Mun,
That's pretty disappointing.
I thought I would be able to do at least a $3,000 top up to my MA next year.
I wonder why the increase is lower this time round?
Hmm.
Well, what to do?
Will just top up to the new BHS and be contented.
Thanks for sharing the update. :D
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