Anonymous
Which is smarter, to put a lump sum of cash or $1000 every month (an example) into SSB?
Was thinking which one would give me a higher return over the long run
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Gabriel Tham
12 Jun 2019
Tag Team Member at Kenichi Tag Team
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Clarence Chua
11 Jun 2019
Financial Planning Specialist at Prudential Assurance Singapore
If we are talking about SSB. A lump sum is definitely the better choice. Since capital is guaranteed and that DCA don’t apply here.
In fact you have to pay a fee every time you put into SSB. And rate changes every new launch. Doing a monthly investment will also expose you to re-investment risk.
If the new rate is really that much better than your rate, just liquidate and re-invest as Hariz said.
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Hariz Arthur Maloy
11 Jun 2019
Independent Financial Advisor at Promiseland Independent
It costs $2 everytime you buy SSB. And even if a new rate is launched, you can liquidate your curren...
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Depends on how much is your lump sum. It will save you the costs and trouble of applying every month.
But if you are trying to create a bond ladder for DBS multiplier, you can buy for 6 months. This ensure you get 12 months consistent payouts that counts as investment category.
The maximum for SSB is 200k per NRIC. So, you can put in a lump sum first, then do 1k a month till you hit the 200k. After that, you can start to optimize by withdrawing the lower interest rate ones and putting into higher interest rate SSB issues.