Asked by Anonymous
Let say I have $6k spare and would like to buy on SSB. Is it better to spread out the $6k to buy month by month or to wait for better interest rate on a particular month and invest it all at one shot?
I prefer to do a ladder. 6k into 6 months of SSB, so that you can get money every month.
I would recommend doing Lum sum to pay less admin fees
The SSB int rates have been low lately so that’s also a consideration
If its 6k, would personally put 1 lump sum as it would cut down on the $2 sales charge per transaction (for buy and sell which makes $4). Though it's not very significant but you can cut down on 5 extra transaction which is an extra if $20.
If you have larger sums then it might be a different situation.
Also, i personally wont recommend you to wait as you'll never know when is the 'best' rates. If it goes up the next month you may continue waiting because you think that the following month will be better and it will take months before you start. If you start early you start getting that 1.8% interest earlier as well.
You can just do lump sum right away. Then if u feel or see that interests rates are going up, you can withdraw the previous SSBs and buy the new one.