Singapore Saving Bonds (SSB)
Asked on 26 Feb 2019
Was wondering if Seedly is able to come up with an article on SSB vs T-Bills?
T-bills are short term instruments with either 6 months or 1 year duration. SSBs are on 10 year duration and you can redeem them anytime.
T-bills are offered at auctions which are not as regular as the SSBs being offered monthly.
With the current economic climate, the returns on both T-bills and SSBs are quite low.
The process on how the T-bills provide returns has been mentioned in another reply and more details are in the link above.
T-bills have very low investment return and are generally not worth it. They are zero coupon bonds, i.e. no interest paid, and you buy them at a discount to their par value. In contrast, SSB offers coupons semi-annually and the coupon rate increases year-on-year until maturity.