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May 27, 2015

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.

May 24, 2015

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.

May 23, 2015

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