Singapore Saving Bonds (SSB)
Asked on 05 Jul 2019
Looking to invest in SSBs with the most value method
By putting in lump sum, you are effectively locked in for that interest rate
By doing 1k every year, you can have a spread of interest rates, some higher, some lower.
By doing 1k every year you incur more fees ($2 per purchase) compared to $10k at once
If you already have the $10k now, I would suggest to split this $10k over 6 months. Say for example, $1.5k a month (can only do multiple of 500) for 6 months. As SSB pays interest every 6 months, this will allow you to have an interest income every single month for the next 10 years.
Of course, you can also choose to do $1k per month for 10 months. You will also get the monthly interest income too.
I would prefer to put all in 10k if you are comfortable with it as the interest for ssb will change every month so you might get a lower interest in the following month.
Hi Jia Jing,
FYI. Current batch of SSB SBAUG19 GX19080E interest yields are lower than Fixed Deposit interest rates on some banks.