Do the SSB prices fluctuate during the maturity period? Is it possible if I bought the bonds for 500$ then during the coupon payment period prices go up and down and I call sell to book profit ? How long is the maturity of these bonds? Thanks! - Seedly

Investments

Singapore Saving Bonds (SSB)

Asked by John Doe

Asked on 15 May 2019

Do the SSB prices fluctuate during the maturity period? Is it possible if I bought the bonds for 500$ then during the coupon payment period prices go up and down and I call sell to book profit ? How long is the maturity of these bonds? Thanks!

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Hi there!

Price fluctuation | Profiting

You can head on to http://www.sgs.gov.sg/savingsbonds/About-SSB/Risks.aspx for more info but here's the answer specific to your question:

"However, you will always get your principal back when investing in Savings Bonds. Once a Savings Bond is issued, interest rate changes will have no effect on the bond’s value."

Therefore, bond prices will remain as it is throughout your entire investment period. But do note there's a $2 transaction fee to whenever each transaction is performed.

Maturity Period

This bond is a 10-year bond with a step-up interest rate at some years into your investment. If you hold the entire 10 years, it'd be on average 2.13% simple interest for the entire 10-years vested.

Hope it answers your question :)

2 comments

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John Doe

15 May 2019

Thank you! This is an awesome product. Then. Does that mean in theory I could buy this bond and we find a few months later there is a new issuance of the same bond with higher rates, I could see this bond and buy the new issuance? If it falls - then I just keep the bond as the principal value doesn’t change?
Billy Ko
Billy Ko

15 May 2019

You're most welcome and absolutely, you're free to enter and exit whenever you want. They will accrued (pro-rated) interest should you choose to redeem before the payment date. Seedly has a detailed article providing an explanation on the SSB too! https://blog.seedly.sg/guide-investing-singapore-savings-bond-ssb-interest-rate-how-to-buy/ Aside from this, if you'd like to see how the interest rates has fluctuated over the years, you may use this calculator: http://www.sgs.gov.sg/savingsbonds/Your-SSB/Calculator.aspx