Is the SG Savings Bond really a "risk-free" place to park your money, if you don't intend to hold it to the full 10 years? - Seedly
Seedly logo
Seedly logo
Ā 

Savings

Singapore Saving Bonds (SSB)

AMA First Investment

Anonymous

Asked on 29 Jan 2019

Is the SG Savings Bond really a "risk-free" place to park your money, if you don't intend to hold it to the full 10 years?

0 comments

8 answers

Answer Now

Answers (8)

Sort By

Alan Kor
Alan Kor
Level 6. Master
Answered on 30 Jan 2019

ssb is backed by the govt

if govt crashes, u got bigger things to worry about than ssb being risk-free

0 comments

šŸ‘ 2
Andy Sim
Andy Sim, HR Professional at a Financial Institution
Level 7. Grand Master
Answered on 26 Feb 2020

Yes, it's backed by the govt and you can withdraw any time you want, don't need to hold it for the full 10 years, just that the returns will be a few percentage points lower than if you hold for longer.

Only downside is the returns are comparably lower compared to if you buy ETFs or do your own investments but the risks are definitely higher.

0 comments

šŸ‘ 1

Yes, SSB is a risk-free place to park your money, even if you don't have the intention to hold it to the full 10 years. This is because you could withdraw your money anytime with no capital loss.

0 comments

šŸ‘ 0
Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 26 Feb 2020

I would consider it very safe due to the Singapore government's backing. Even if you withdraw it before the 10 years mark, you still get paid the pro-rated interest without any penalty.

0 comments

šŸ‘ 0
MT2020
MT2020
Level 7. Grand Master
Answered on 26 Feb 2020

The ssb is backed by the government, so the only reason why you will not get your money back is if the government cease to exist.

0 comments

šŸ‘ 0
Rais M
Rais M
Level 7. Grand Master
Answered on 26 Feb 2020

The 3 key selling points are

1) capital is protected by our government

2) reasonable returns

3) long term focus

Do you have confidence in Singapore government and economy? I have and hence I believe it is completely risk free.

0 comments

šŸ‘ 0

If only the government cant pay us. But we would have more things to worry about if that actually happens as well.

0 comments

šŸ‘ 0
Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 9. God of Wisdom
Updated on 29 Jan 2019

I would not say anything is truly risk free.

SSB is very low risk. The risk being the govt defaults, MAS cannot payout.

Even fixed deposit has risk. The bank might go bankrupt and cannot pay u back.

Park less than 10 years is ok, ssb allow any time withdraw with 1 month notice period.

0 comments

šŸ‘ 0