As personal finance gains more attention, many investors are turning to stable, low-risk options like Singapore Savings Bonds (SSB) to build a balance
As personal finance gains more attention, many investors are turning to stable, low-risk options like Singapore Savings Bonds (SSB) to build a balanced portfolio. Backed by the Singapore government, SSB offers steady interest with no risk of capital loss, making it an attractive choice for conservative investors. Here’s a closer look at SSB features and December 2023 rates.
What Makes SSB a Smart Investment?
SSB is a government-backed bond with step-up interest, meaning returns increase the longer you stay invested. It also allows for penalty-free early withdrawal, making it a flexible choice for those who may need access to their funds. With a minimum investment of just S$500, SSB offers an accessible entry point for many investors, along with long-term stability and easy application through local bank accounts.
Key Features of SSB
Minimal Risk: Rated AAA by Moody’s, S&P, and Fitch, SSB is a secure way to invest with negligible risk.
Liquidity and Flexibility: Investors can redeem their bonds without penalties anytime, providing a safeguard for unexpected financial needs.
Ease of Investment: SSB requires only a local bank and CDP account, making it simple to access.
Attractive Interest Rates: December 2023 rates are between 3.00% to 3.27% per annum, offering an average annual return of 3.07% over a 10-year period.
December 2023 Rates and Comparison
This month’s bond, identified as SBJAN24 GX24010F, offers returns of up to 3.27% for long-term holders. Compared with other options like fixed deposits, SSB provides competitive rates with greater flexibility and a lower entry requirement. For example, SSB’s 10-year rate is 3.07%, compared to fixed deposits, which often require higher minimum deposits.
Investing and Redeeming SSB
Anyone aged 18 and above can invest in SSB via cash or SRS, with options to redeem early. Redemption can be requested through banking apps, ATMs, or internet portals, and funds are returned promptly without penalties.
Whether you’re a new or seasoned investor, SSB offers peace of mind, high accessibility, and a source of risk diversification. For those exploring safe, low-risk investments with flexible access to funds, SSB remains a viable and beneficial option.
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