Singapore Savings Bonds Offer Record Interest Rates in November

SINGAPORE – The November issue of the Singapore Savings Bond (SSB) opened Monday with a first-year rate of 3.08% and a 10-year average return of 3.21%, both hitting record highs, according to FSA data. of Singapore (MAS).

By comparison, the October SSB issuances yielded a first-year interest rate of just 2.6% and averaged a 10-year return of 2.75%, according to MAS data.

The latest SSB problem stems from rising global interest rates and local banks raising Fixed Deposit (FD) rates. UOB on Monday We increased the 15-month FD rate for the Singapore dollar to 3%.

The interest rate for monthly SSB issuances is based on the average yield of Singapore government securities for the month prior to the application opening. This is rising in step with the US Federal Reserve (Fed), which has so far raised the Fed Funds rate to a range of 3-3.25% to keep inflation in check. I’m here.

In the October issue, MAS received $1.1 billion worth of applications against its $900 million allotted.

The November $900 million SSB issuance will mature 10 years later in November 2032. The first interest payment will be made on May 1, 2023, and thereafter every six months until maturity, on November 1 and on May 1.

SSB is designed to complement investors’ savings and investments over the long term and is fully supported by the Government of Singapore.

Registration for the November tranche opens at 6:00 PM on Monday and closes at 9:00 PM on October 26th.

Applications can be made through DBS/POSB, OCBC and UOB internet banking portals and ATMs, and OCBC’s mobile app. Or through the Supplementary Retirement Scheme (SRS) or your SRS operator’s Internet banking portal.

Investments start at $500 and can be made with cash or SRS funds.