The January 2023 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.26% over 10 years.
This is not appealing considering that other low to risk-free alternatives such as T Bills and bank fixed deposits easily yield more than 4% currently.
However, if we consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above 3% yield for the next decade, then this tranche of SSB is fairly decent for us to park our spare cash at zero risk. We could redeem SSB anytime in the coming months, earning interest at 2.95% while getting back my capital for deployment to other investments or large item purchases unlike T Bills and bank fixed deposits which would incur losses or forfeit of interest with premature withdrawals.
After my failed attempt at T Bill, I decided to apply for $10k of this Jan 2023 tranche using my idle SRS funds which were initially planned to add local bank stock which remain stubbornly above its NAV and displaying little sign of weakness. Furthermore, in the coming new year soon, I would begin topping up my SRS account early in first quarter.
There it goes.
$900m is up for grabs. Due to the relatively low yield, I anticipate lower interest for this tranche and higher allotment amounts per person.
The first payment will be on 1 Jul 2023 and this bond will mature on 1 Jan 2033.
If you are interested in this tranche of SSB, do note that the application dateline is on today, 27 Dec 2022, 9pm.
Thanks for reading.
With love & peace,
Qiongster
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