Constantly hearing that SSB is a very safe investment, what are some of the risks of investing in SSB? - Seedly

Investments

Singapore Saving Bonds (SSB)

Asked by Anonymous

Asked on 01 Apr 2019

Constantly hearing that SSB is a very safe investment, what are some of the risks of investing in SSB?

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Default risk of the government.

Reinvestment risk upon maturity of the bond. You may not get the same interest rates when the bond matures and you get back your capital.

And other than that, just the low yield it gives barely beats inflation.

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Gibson Junxun
Gibson Junxun
Level 3. Wonderkid
Answered on 01 Apr 2019

It’s indeed very safe but the 2 main risks to it are

  1. If somehow our government / MAS collapses.

  2. Opportunity Cost, it takes a month to withdraw whatever money you put into. If a good opportunity comes by and your money is tied in it. you might lose a good opportunity to gain a better investment.

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