Is it better to invest SSB monthly or to throw a lump sum on a particular SSB month? - Seedly
 

Singapore Saving Bonds (SSB)

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Asked by Anonymous

Asked on 07 Apr 2019

Is it better to invest SSB monthly or to throw a lump sum on a particular SSB month?

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?

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I prefer to do a ladder. 6k into 6 months of SSB, so that you can get money every month.

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 21 Apr 2019

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

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Tay WenHao
Tay WenHao
Level 6. Master
Answered on 19 Apr 2019

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.

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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.

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