Thursday, April 25, 2024

Applied for Singapore Savings Bonds (SBMAY24 GX24050X)


The May 2024 tranche of Singapore Savings Bonds (SSB) has an average yield of 3.06% over 10 years.

The first 6 years yield a flat 2.99% per annum; 7th year yields 3.03% p.a, 8th year yields 3.2% p.a. and 9th, 10th years yield 3.27% p.a.

Although such yield is lower than other lower risk alternatives such as T Bills and money market funds which easily yield more than 3% currently, it is higher than CPF OA rate of 2.5% p.a. and some bank fixed deposits which yield less than 3%.

If we also consider the great flexibility, liquidity of SSB for redemption and long-term lock down at above 3% p.a for the next decade, then this tranche of SSB is fairly enticing for us to park our spare cash at zero risk, capital guaranteed for the mid to long-term. 

We could redeem SSB anytime, earning interest at 2.99% in the short-term while getting back our 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. Do note that the redemption process of SSB can be up to 1 month of lead time.

I decided to apply for $10k of this May 2024 tranche using my remaining funds in war chest.

There it goes.

S$900m is up for grabs.

The first payment will be on 1 Nov 2024 and this bond will mature on 1 May 2034.

I will still be happy to inject more cash into SSB in the next few months if the yields stay above 3%. My ultimate aim is to max out the personal limit of S$200k soon.

If you are interested in this tranche of SSB, do note that the application dateline is today, 25 Mar 2024, 9pm for online applications.

Thank you for reading.

With love & peace,

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