Asked by Jared Ho

Hi there, i would like to seek your opinion on singapore savings bond. Is it good to park my money there and for roughly how many years? Thanks for your help in advance.?

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  • Gabriel Lee
    Gabriel Lee
    Level 6. Master
    Answered on 30 Dec 2018

    If you'd like to make full use of SSB, park your funds for the full 10 years. Then along the way, should you need the money or find other better alternatives which offers higher returns, you can redeem the funds earlier without any penalty

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  • Gabriel Tham
    Gabriel Tham, Kenichi Tag Team Member at Tag Team
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered on 01 Jan 2019

    It is a 10 year bond. Best if you can hold it for 10 years for the incremental interest rate every year. Of course there is flexibility to withdraw anytime so this makes it one of the best savings instruments.

    Relatively low risk aside from the government collapsing and Singapore going into depression.

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  • Loh Tat Tian
    Loh Tat Tian
    Level 6. Master
    Answered on 30 Dec 2018

    Singapore Savings Bond is a 10 year bond that pays coupon which step up every year.

    Its effective rate of interest or IRR is at 2.43% for the latest batch.

    Its liquidity is about 1 month. Many people put in 3 months of emergency funds into it.

    For parking of your money, it depends on what is the use of the money. It is best suited as a secondary fund which requires liquidity (hence people put half of their emergency funds in.

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  • Yong Kah Hwee
    Yong Kah Hwee
    Level 6. Master
    Answered on 30 Dec 2018

    If you are a risk averse person, then yes SSB is a good place to park your money. If you want to get the maximum amount of interest of of it, you should park your money there for the full 10 years.

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    • Jared Ho
      Hi thank u so much for your reply. What would you say would be a good amount to start off with?
      30 Dec 2018
    • Yong Kah Hwee
      It really depends on you, since you can always liquidate and get your money back anytime you want.
      30 Dec 2018
  • Lok Yang Teng
    Lok Yang Teng
    Level 6. Master
    Answered on 30 Dec 2018

    SSB is good for low risk investors since principal and interests are guaranteed. You should keep it there till maturation (10 years).

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