Singapore Savings Bond Effective Returns

Singapore Savings Bond Effective Returns:

We look at the Singapore Savings Bond effective returns per year today.

The return from investing money in the first issue of Singapore Savings Bonds is shown. This bond will be available for individual application up to 29 Sep 2015. It will be issued effective on 1 October 2015. Maturity date is 1 October 2025.

The effective return per year on a compounded basis will be 2.01%.

At the end of the 10th year, the nominal interest earned will be 3.7%.

The effective return per year on a compounded rate will be 2.63%.

This bond will be reflected as "SBOCT15 GX15100F" in your CDP statement and "CDP-SBOCT15" in your bank statement.

Welcome to Singapore Savings Bonds blogspot site.

First Singapore Savings Bond Issue

First Singapore Savings Bond Issue:

Welcome to Singapore Savings Bonds blogspot site.

Details for first Singapore Savings Bond Issue are out on 1 September 2015. The first Singapore Savings Bond will be issued by Monetary Authority of Singapore on 1 October 2015.

First Singapore Savings Bond Issue:

Interest Schedule:

Year | Interest (%) | Average Annual Return (%)

1, 0.96, 0.96

2, 1.09, 1.02

3, 1.93, 1.32

4, 2.93, 1.71

5, 3.25, 2.01

6, 3.25, 2.20

7, 3.25, 2.34

8, 3.25, 2.44

9, 3.30, 2.53

10, 3.70, 2.63

Singapore Savings Bonds (SSB) can be applied in $500 multiples. The maximum for a single issue is $50,000.00.

Interest will be paid out twice a year, on April 1 and October 1, for as long as you keep the SSBs.

Applications for this bond will open at 6.00pm on 1 September 2015 and close at 9.00pm on 25 September 2015. Individuals may apply through DBS/POSB, OCBC and UOB ATMs or through DBS/POSB’s Internet Banking portal.

A $2 transaction fee will be charged for each application. This fee will not be refunded for unsuccessful or partially successful applications.

Best Singapore Savings Bonds

Best Singapore Savings Bonds:

Welcome to Singapore Savings Bonds blogspot site.

At the best Singapore Savings Bonds blogspot site, we share with you updates on the best Singapore savings bonds rates in Singapore.

Look out for the best Singapore savings bonds in the coming days and weeks and months, as we scour the retail bond investment landscape.

We highlight and share the best Singapore savings bonds rates with you.

Check out the best Singapore savings bonds rates now on our blogspot site.

Singapore Savings Bonds Returns

Singapore Savings Bonds Returns

What are the Singapore Savings Bonds returns? How much interest can you earn by investing in Singapore savings bonds? Are the rates of returns high for Singapore savings bonds, compared to fixed deposit investments?

To answer the question on Singapore savings bonds returns is to ask how much interest return can one get by investing in Singapore savings bonds.

How much return can I get?

The first issue of SSB is out now. Read about First Issue of Singapore Savings Bonds here.

If you hold your Savings Bond for the full 10-year term, the average interest per year on your investment will match the return if you had invested in a 10-year Singapore Government Security (SGS) at the point of your investment.

In the last 10 years, the 10-year SGS yield has been between 2% to 3% most of the time.

We have average returns of bond yield since 1998 listed for your information.

End of Period
10-Year Bond Yield
10-Year Bond Price

1998 4.48 108.75
1999 4.56 98.65
2000 4.09 104.18
2001 3.97 97.28
2002 2.55 107.95
2003 3.75 88.1
2004 2.58 108.72

2005 3.21 103.06
2006 3.05 105.85
2007 2.68 108.26
2008 2.05 117.03
2009 2.66 98.7
2010 2.71 104.54
2011 1.63 105.42
2012 1.3 116.56
2013 2.56 101.61
2014 2.28 106.21
2015 2.34 105.51

Look at the bond yield since 2005. The highest yield was 3.21% p.a. in year 2005. The lowest was 1.3 %p.a. for year 2012.

Step-up interest:
Conventional SGS pay the same interest rate each year. Savings Bonds will pay interest that increases over time to give you an average interest rate that is linked to SGS yields.

How does the step-up interest work?
(Figures are for illustrative purposes only)

Let’s say you applied for a Savings Bond in May 2015 which has the following interest payment schedule.

Illustration of step-up interest payments

In the first year, you will earn interest based on the average 1-year SGS yields in Apr 2015 (0.9% p.a.).

In the second year, you will earn a higher interest (1.5% p.a.) compared to the first year (0.9% p.a.), so that on average over the two years you would have received the average 2-year SGS yields in Apr 2015 (1.2% p.a.).

In the tenth year, the Savings Bond will pay an interest of 3.3% p.a.. The average interest on your investment over ten years would match the average 10-year SGS yields in Apr 2015 (2.4% p.a.).

At any time during this 10-year period, you can choose to redeem the bond with no penalty and receive your principal ($1,000) with accrued interest. If you hold the bond for the full 10 years, you will get your principal back together with the final 6-monthly interest payment.


If you decide to redeem your Savings Bond early, the average interest per year will be lower than the 10-year SGS yield. For example, if you redeem it after 2 years, the average interest per year on your investment will match the return if you had invested in a 2-year SGS.

The interest rate schedule for each Savings Bond issue will be announced before applications open.

Investment Strategy: Singapore Savings Bonds

Investment Strategy: Singapore Savings Bonds

Welcome to Singapore Savings Bonds blogspot site.

In today's 2015 post on Investment Strategy: Singapore Savings Bonds, we share insight into bond investment strategy.

Passive Bond Investment Strategy

Of the various Singapore savings bonds investment strategies, passive bond investment strategy is the commonest and simplest plan for most men and women in the retail streets of Singapore.

In a nutshell, passive bond investment strategy means to buy and hold. If you adopt this passive bond investment strategy, you are a long-term bond investor.

You put in a fixed sum of money to buy Singapore Savings Bonds. You park your money there for ten years, ignore it and carry on with other aspects of your life. Your earn interest every 6 months. Upon maturity, you get back your principal. Sweet and simple, right?

To execute this passive bond investment strategy, you first must decide how much money to invest in Singapore Savings Bonds. You must also agree to hold the Singapore Savings bonds until maturity of ten years.

All these decisions are made after you consider your personal financial circumstances.

To do that, you should perform a personal financial needs analysis. If you are unsure, please consult a qualified personal financial advisor.

What are benefits of this passive investment strategy Singapore Savings Bonds?

You get dependable cashflow for ten years.
- Interest payments are made every 6 months. On time, every time. Tax-free.

You get back your principal.
- You get back 100% of your capital investment at maturity. No early termination of bond investment by issuer.

Your investment is guaranteed.
- Your principal investment in Singapore Savings Bonds is guaranteed by the Singapore government. Transfer money under your pillow to Singapore Savings Bonds. Worry less and sleep better.

You reduce transaction costs.
- Buy once, pay transaction cost once only.

You eliminate the hassle of frequent transactions.
- Buy and forget. Go on with your life.

You eliminate reinvestment risk during tenure of bond investment.

What are risks of this passive investment strategy Singapore Savings Bonds?

Interest Rate Risk
- You cannot capitalize on future rise of interest rate within the ten years of your bond investment. Because at issuance, rates are fixed based on the prevailing SGS yields and locked in for each issue.
- Example: You buy Singapore savings bonds this year at Y% p.a. Should interest rate rise to Y+1% p.a. in the following year, you lose out on the potential earned interest income.

Inflation Risk
- Your interest income earned may not beat inflation over the ten-year bond investment term.

How To Apply For Singapore Savings Bonds 2

How To Apply For Singapore Savings Bonds 2

Welcome to Singapore Savings Bonds blogspot site.

Here is a check list to help you answer the question "How To Apply For Singapore Savings Bonds".

You will need to answer these three questions on 'How To Apply for Singapore Savings Bonds'.

(1) Do you have an individual CDP securities account?
(2) Do you have a Direct Crediting Service (DCS) link for your CDP securities account?
(3) Do you have an account with a Savings Bonds participating bank?

You need to have these three account / services activated before you can successfully apply for and solve your 'How To Apply for Singapore Savings Bonds' problem.

In summary, the requirements to satisfy on How To Apply for Singapore Savings Bonds are:

• Individual CDP Securities account with direct crediting service (DCS) activated;  and

• Bank account with one of the participating banks (currently DBS/POSB, OCBC or UOB[1]) ([1] more banks may join later)

If you have met all these requirements, you are ready to visit a participating bank ATM and punch the numbers to apply for your savings bonds or perform the application via online transaction.

If you have not met the requirements on how to apply for Singapore savings bonds, the rest of this post is for you to read.



On 'How To Apply for Singapore Savings Bonds', here is the step-by-step guide. Please bear with us. This guide is very long as we want to be thorough with all available options.

To apply for an individual CDP securities account, follow these steps.

(Please note that individuals need to be at least 18 years old to open an individual CDP Securities account. Also note that joint CDP accounts cannot be used to apply for Savings Bonds.)

Download and complete account application form from sgx.com/cdp/faq

For residents in Singapore:

Mail the completed form to CDP with:

* Photocopy of NRIC (Singaporeans, PRs and Malaysians) or passport (foreigners)

* Original or E-statement dated within the last 3 months which cross-references NRIC/passport particulars:
(i) bank statement from any MAS licensed bank; or
(ii) CPF statement; or
(iii) tax return.
Note: These documents will be retained by CDP.

OR

Visit CDP Customer Service Centre or a SGX Securities broker with:

* Completed form
* Original and photocopy of NRIC (Singaporeans, PRs and Malaysians) or passport (foreigners)

For residents overseas:

You may apply by mail but your application and supporting documents must be certified. Visit sgx.com/cdp/faq for details.

Include your bank account number to activate DCS at the same time.

Wait for mail notification from CDP confirming account opening. This usually takes around 10 business days.


To apply for DCS, follow these steps:

Online Submission
1. Visit sgx.com/cdp
2. Click on “CDP Internet Service/Login”
3. Click on “Customer Service/Direct Crediting Service”
4. Click on “Click here to apply for DCS”
5. Enter bank account details and click “Confirm”

OR

Offline Submission
Download and complete DCS application form from sgx.com/cdp
Mail completed form to CDP

OR

Visit CDP Customer Service Centre or a SGX Securities broker with:
* Completed form
* Original and photocopy of your NRIC (Singaporeans, PRs and Malaysians) or passport (foreigners)

You must have DCS to receive Savings Bonds interest and redemptions in your bank account. Participating DCS banks are Citibank, DBS/POSB, HSBC, OCBC, Standard Chartered Bank and UOB.



To apply for a bank account and ATM card with any Savings Bonds participating bank, follow these steps.

You can only apply for Savings Bonds through participating bank ATMs.

Participating Savings Bonds banks are DBS/POSB, OCBC and UOB.

Alternatively, you can apply using DBS/POSB iBanking services.



Some Information To Help You With CDP Account Opening:

CDP Address:
The Central Depository (Pte) Limited
11 North Buona Vista Drive #06-07
The Metropolis Tower 2
Singapore 138589

CDP Customer Service Centre:
9 North Buona Vista Drive
#01-19/20 The Metropolis
Singapore 138588
Mon to Fri: 8.30am – 5pm
Sat: 9am – 12.30pm
PH Closed

Contact CDP:
Hotline: +65 6535 7511
Fax: +65 6535 0775
Email: asksgx@sgx.com
Mon to Fri: 8.30am – 5pm
Sat: 9am – 12.30pm
PH Closed

Key Features of Singapore Savings Bonds

Key Features of Singapore Savings Bonds:

We take a closer look at key features of Singapore savings bonds for Singaporean retail investors in Singapore. These key features of Singapore savings bonds are explained in the Fact Sheet provided by the Monetary Authority of Singapore.

Key Features of Singapore Savings Bonds:

(1) Principal guaranteed
You will always get your investment amount back in full - no capital losses.

(2) Invest for the long-term
You can invest for up to 10 years and earn interest that “step-up” or increases over time. The longer you hold your bond, the higher your return.

(3) Flexible redemption
You don’t have to decide upfront how long you want to be invested. Get your funds back within a month, with no penalty.

Other Key Features of Singapore Savings Bonds Details:

Eligibility
 Individuals only

Term
 10 years

Interest
 Paid every 6 months

 At issuance, rates are fixed based on the prevailing SGS yields and locked in for each issue

Issuance
 Monthly

Redemption
 Monthly, with no penalty
 Principal and any accrued interest will be paid

Investment amount
 Minimum of $500, and subsequent multiples of $500 up to a cap to be announced

Non-tradable
 Savings Bonds are non-marketable securities and cannot be bought or sold in the secondary market

3 Benefits of Singapore Savings Bonds

3 Benefits of Singapore Savings Bonds

We look at 3 benefits of Singapore Savings Bonds today in 2015.

Singapore savings bonds are a new class of investment for retail purchase to meet the investment needs of Singaporeans. You should be conversant with the three benefits that this new Singapore Savings Bonds aims to meet. What are the benefits of investing in Singapore Savings Bonds? What valuable take-away is there for retail investors keen to purchase Singapore savings bonds?


The 3 Benefits of Singapore Savings Bonds are:

According to the Fact Sheet provided by the Monetary Authority of Singapore, here are three benefits of Singapore savings bonds.

(1) Saving for retirement

Savings Bonds are a safe and flexible option to maintain the value of your nest egg.

(2) Setting money aside for “rainy days”

You can earn step-up interest on your savings until you need the money.

(3) Diversifying your investments

Savings Bonds can help you diversify risks and achieve an efficient portfolio.

So there you have the 3 benefits of Singapore savings bonds.

Singapore Savings Bonds Interest

Singapore Savings Bonds Interest

What are the latest Singapore Savings Bonds interest rates? How much interest can you earn by investing in Singapore Savings Bonds? Interest rates are good enough for Singaporeans to invest in them?

Singapore Savings Bonds interest rates will be made known at the start of each series of Singapore savings bonds launch.

If you hold Singapore Savings Bonds for the entire duration of ten years, you can expect to collect interest payment equivalent to the 10-year Singapore Government Securities (SGS) bonds.

As of last week, the yield (annual interest payment) of 10-year SGS bonds are listed below:

22 May 2015 = 2.34 %p.a.

25 May 2015 = 2.37 %p.a.

26 May 2015 = 2.35 %p.a.

27 May 2015 = 2.43 %p.a.

28 May 2015 = 2.43 %p.a.

29 May 2015 = 2.42 %p.a.

Singapore Savings Bonds interest rates will be lower if you withdraw your principal before the 10-year maturity.

All Singapore savings bonds interest payments will be paid out at regular 6-monthly intervals.

How To Apply For Singapore Savings Bonds

How To Apply For Singapore Savings Bonds


LATEST: Click to Read step-by-step guide to apply for Singapore Savings Bonds here.

Singapore, 11 May 2015…

The Monetary Authority of Singapore (MAS) today released more information on how investors can buy and redeem Singapore Savings Bonds. MAS expects the first Savings Bond to be issued in the second half of 2015. MAS will announce the programme launch date at least one month before applications for the first issuance open.

2 Savings Bonds are a new type of Singapore Government Securities (SGS) designed to offer individuals a long-term, flexible savings option with safe returns. They will provide individuals with more options to save and invest to meet their long-term financial needs.

Getting started

3 To apply for Savings Bonds, individuals will need:

a. A bank account with one of the participating banks (currently DBS/POSB, OCBC or UOB1); and

b. An individual Central Depository (CDP) Securities account with direct crediting service (DCS).

DCS allows Savings Bond payments to be made directly to the individual’s DCS-linked bank account. Individuals need to be at least 18 years old to open an individual CDP Securities account. To find out how to open a CDP Securities account or activate DCS for an existing CDP Securities account, please refer to www.sgx.com/cdp/faq.

4 Individuals who wish to invest in Savings Bonds should ensure that they have the necessary bank and CDP accounts over the next few months before the Savings Bonds are launched.

Application and redemption periods

5 A new Savings Bond will be issued monthly. Applications for each Savings Bond issue will open on the first business day of each month and close four business days before the end of the month. Requests to redeem existing bonds can be made during the same period.

6 All application and redemption requests will be processed three business days before month’s end. Savings Bonds will be issued on the first business day of the next month and redemption proceeds will be processed by the second business day.

Applying for and redeeming Savings Bonds

7 Individuals will be able to apply for and redeem Savings Bonds through DBS/POSB, OCBC or UOB ATMs; or via DBS/POSB internet banking channels. Bank charges may apply. Applications and redemption requests must be made in multiples of $500, and Savings Bonds will only be available for purchase using cash.

8 Individuals will be able to apply for each Savings Bond issue with as little as $500, and up to $50,000. In addition, individuals will be able to hold up to $100,000 of Savings Bonds at any point in time. This will meet the needs of the vast majority as more than 90% of individual bank deposit accounts have balances of $100,000 or lower.

Here is the step-by-step guide to apply for Singapore Savings Bonds. Click to read.


Allocation of Savings Bond

9 MAS will announce the issuance size for each Savings Bond issue before application opens. Should the total demand for Savings Bonds exceed the amount on offer in a particular month, MAS will allocate the bonds so as to maximise the number of successful applicants. (Please refer to this Application Factsheet for more information on the allotment process.) Individuals who do not receive their full allotment may wish to apply for the next issue.

Learning more about Savings Bonds

10 Investors should consider all the features of Savings Bonds before making their applications. To help investors understand the features of the Savings Bonds, MAS will set up a dedicated Savings Bonds website and a public hotline for enquiries ahead of the launch of the programme. In the meantime, individuals may refer to this set of frequently asked questions (FAQs) on Savings Bonds.

1 More banks may participate in the Savings Bond programme later.

Here are the three things you need to apply for Singapore Savings Bonds.

Who Can Buy Savings Bonds

Who Can Buy Savings Bonds?

Am I eligible to buy Savings Bonds? Can corporations purchase Savings Bonds as well?

Only individual investors can apply for and hold Savings Bonds.

To apply for Savings Bonds, you need to have a DBS/POSB, OCBC or UOB bank account and ATM card.

This is because the application will be through the ATMs. DBS/POSB customers may also apply for Savings Bonds through Internet Banking.

You also need an individual (not joint) CDP securities account with Direct Crediting Service (DCS) activated.

You need to be at least 18 years old to open an individual CDP Securities account to hold Savings Bonds.

Is there a minimum age requirement?

You need to be at least 18 years old to open an individual CDP Securities account to hold your Savings Bonds.

Savings Bonds

Savings Bonds

1. What are Savings Bonds? What are the main features of Savings Bonds?

Savings Bonds are a special type of Singapore Government Securities (SGS) with features that make them accessible and suitable to individual investors:

Principal-guaranteed Savings Bonds : You will always get your investment amount back in full, i.e. no capital losses.

Long-term investment Savings Bonds : You can invest for up to 10 years and earn interest that increases over time. The longer you hold your bond, the higher your return.

Flexible redemption option Savings Bonds : You don’t have to decide ahead of time how long you want to hold your Savings Bonds for. You can get your funds back within a month, with no penalty.

2. Why is the Government introducing Savings Bonds? Why is this necessary?

The Government is providing a long-term savings option (Savings Bonds) that offers safe returns, for Singaporeans who can and wish to save more for the long-term. Savings Bonds will complement the CPF system and other savings and investment options already available (e.g. deposits, equities, unit trusts, endowment plans), offering more choices for the individual investor.

3. Does the Government need the money? What will the Government use the money for?

The Government is not issuing Savings Bonds to finance its expenditure. The money raised from issuing Savings Bonds cannot be spent and will be invested.

source: MONETARY AUTHORITY OF SINGAPORE

4. Who is this product meant for? How do I know if Savings Bonds are suitable for me?
All individual investors can apply for and hold Savings Bonds.

In general,

Retirees and those nearing retirement can invest in Savings Bonds as a safe and flexible option to maintain the value of their nest egg.

Individuals who do not have a large amount of capital can start investing in Savings Bonds with as little as $500 for up to 10 years.

Those looking to set aside a portion of their savings as rainy day funds can benefit from the flexibility to redeem Savings Bonds when they need the cash. While holding the bond, they will earn an interest rate that steps-up over time.

Active investors could allocate a portion of their investment to Savings Bonds alongside cash holdings and other bonds to diversify risks in their investment portfolios.

5. When can I start buying Savings Bonds?

Applications for Savings Bonds will open in the second half of 2015. MAS will announce the launch date one month before application opens for the first Savings Bond issue.

To apply for Savings Bonds, you need to have a DBS/POSB, OCBC or UOB bank account and ATM card. This is because applications will be through the ATMs. DBS/POSB customers may also apply for Savings Bonds through Internet Banking.

You also need an individual (not joint) CDP Securities account with Direct Crediting Service (DCS) activated. Please note that you must be at least 18 years old to open an individual CDP Securities account.

Singapore Savings Bonds

Singapore Savings Bonds 

Welcome to Singapore Savings Bonds dot blogspot dot com!

 Our Singapore Savings Bonds blog will update you on the latest news, interest rates and key updates on Singapore savings bonds for our readers.

 As you know, Singapore Savings Bonds are a new breed of financial investments that is introduced in the year 2015 to retail investors in Singapore.

 According to Monetary Authority of Singapore, Singapore Savings Bonds are a special type of Singapore Government Securities (SGS) with features that make them accessible and suitable to individual investors.

 The Government is launching Singapore Savings Bonds to provide a long-term savings option that offers safe returns, for Singaporeans who can and wish to save more for the long-term.

 Singapore Savings Bonds will complement the CPF system and other savings and investment options already available (e.g. deposits, equities, unit trusts, endowment plans), offering more choices for the individual investor.

 Enjoy reading Singapore Savings Bonds!

 Admin