How should I invest in SSB ?If i want to put it for max 10years, what is the difference if i put in $10k at once between buying $1k every year for example? - Seedly
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Singapore Saving Bonds (SSB)

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jiajing wang

Asked on 05 Jul 2019

How should I invest in SSB ?If i want to put it for max 10years, what is the difference if i put in $10k at once between buying $1k every year for example?

Looking to invest in SSBs with the most value method

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Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered on 05 Jul 2019
  1. By putting in lump sum, you are effectively locked in for that interest rate

  2. By doing 1k every year, you can have a spread of interest rates, some higher, some lower.

  3. By doing 1k every year you incur more fees ($2 per purchase) compared to $10k at once

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Rais M
Rais M
Level 7. Grand Master
Answered on 26 Feb 2020

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.​​​

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MT2020
MT2020
Level 7. Grand Master
Answered on 26 Feb 2020

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.

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Thomas Koo
Thomas Koo
Level 3. Wonderkid
Updated on 04 Dec 2019

Hi Jia Jing,

FYI. Current batch of SSB SBAUG19 GX19080E interest yields are lower than Fixed Deposit interest rates on some banks.

https://blog.moneysmart.sg/fixed-deposits/best-fixed-deposit-accounts-singapore/

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