Singapore Saving Bonds (SSB)
AMA First Investment
Asked on 29 Jan 2019
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.
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.
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.
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.
If only the government cant pay us. But we would have more things to worry about if that actually happens as well.
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.