Redeeming my SSB investment early

You have another 5 years to go on your existing SSB.

​

Calculate the interest gained due to the increased interest rate on the amount you are swapping.

​

Generally no penalties for early redemption for SSB. You'll even get the interest accrued up to point of redemption.

​

Also take into account the fees per subscription/redemption.

​

Check that you have a net gain and decide if the net gain is worth your effort/time.

Redeeming your Singapore Savings Bond (SSB) investment early to take advantage of a higher interest rate is a common consideration. Here are a few points to keep in mind:

1. Early Redemption: Redeeming your SSB investment before the 10-year holding period is allowed. You can do this anytime during the first year without any penalties. After the first year, you can redeem it at any time, but there may be some minor interest rate adjustments.

2. Interest Rate Changes: The SSB interest rates are adjusted every month. While you might be considering redeeming your current SSB to reinvest in a higher-rate SSB, keep in mind that future interest rates can fluctuate. It's hard to predict if rates will continue to rise.

3. Transaction Costs: Redeeming and reinvesting SSBs involve transaction costs and some administrative work. Be sure to factor in these costs when making your decision.

4. Timeline Considerations: Be aware that reinvesting in a new SSB resets the 10-year holding period, which may affect your planning.

Before making a decision, it's advisable to calculate the potential gains or losses, considering transaction costs. Additionally, assess your financial goals and risk tolerance. If you're comfortable with the potential implications, redeeming and reinvesting in a higher-rate SSB can be a reasonable strategy, but it's crucial to weigh the pros and cons carefully. If you're unsure, consider consulting with a financial advisor for personalized advice.

Depending on how much is your SSB investment so may not get full allocation. But for the past few rounds, it has been full allocation up to 200k.

​

As for the part about losing interest, if you have enough cash, use your own cash to apply for this round and then also redeem at the same round. Money will be deducted first and the redemption amount will come back to you early next month which is pretty fast. So it is more of a cashflow issue.

See how much u invested that time. Overall should gain just whether worth the hassle