Anyone has any articles I could refer to with regards to a comparison between SSB vs T-Bills? Returns, how it works compared to SSB(there is an extensive article on SSB but not T-bills) If not could Seedly come up with an article on it? - Seedly
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Singapore Saving Bonds (SSB)

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Anonymous

Asked on 26 Feb 2019

Anyone has any articles I could refer to with regards to a comparison between SSB vs T-Bills? Returns, how it works compared to SSB(there is an extensive article on SSB but not T-bills) If not could Seedly come up with an article on it?

Was wondering if Seedly is able to come up with an article on SSB vs T-Bills?

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Shaun WQ Lim
Level 7. Grand Master
Answered on 08 May 2020

Https://www.mas.gov.sg/bonds-and-bills/investing-in-singapore-government-securities

  1. 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.

  2. T-bills are offered at auctions which are not as regular as the SSBs being offered monthly.

  3. 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.

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YT
Level 9. God of Wisdom
Answered on 08 May 2020

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.

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