Asked by Anonymous

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

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  • Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered on 01 Apr 2019

    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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