August 2023’s Singapore Savings Bond (SSB) sees an average return of 2.99% p.a. for its 10-year period. Rates are almost completely flat and first-year interest is already 2.97%, so you get nearly 3% p.a. regardless of how long you hold the bond for. This is an uptick in rates from last month’s July 2023 SSB.
Also, there are 3 T-Bills whose auction dates fall on this month, including one of only 4 1-year t-bills for the year of 2023.
August 2023 SSB
|Year from issue date||1||2||3||4||5||6||7||8||9||10|
|Average return per year %*||2.97||2.97||2.97||2.97||2.97||2.97||2.97||2.98||2.98||2.99|
The rates of August 2023 SSB looks similar to that in May 2023 which was nearly oversubscribed. SSbs haven’t been oversubscribed in a while, with April 2023’s SSB being the last time this happened. Given the similar rates, August’s SSB may prove popular too with individuals looking for a low-risk way to grow their funds.
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Past SSB Rates
|Year From Issue Date||1||2||3||4||5||6||7||8||9||10|
3 t-bills up for subscription this month, and one SGS bond
For the month of July 2023, there are 3 t-bills to subscribe. 2 of them are the usual 6-month variants, while one is a rare 1-year t-bill. There is also a 5-year SGS bond to
|Type||Announcement Date||Auction Date||Tenure|
|T-bill||28th June 2023||6th July 2023||6-month|
|T-bill||13th July 2023||20th July 2023||6-month|
|T-bill||20th July 2023||27th July 2023||1-year|
|SGS Bond||20th July 2023||27th July 2023||5-year|
The latest 6-month t-bill had a pretty high cut-off yield of 3.89% p.a. 6-month t-bills will likely continue to be a popular way to set aside savings for a short term. For those who wish to set aside their funds for a longer time, they may consider subscribing the 1-year t-bill which is the 3rd of 4 1-year t-bills this year.
Finally, there is also a 5-year SGS bond to subscribe later this month. It should be slightly higher in rates than this month’s SSB, although I wonder whether losing liquidity for a little more returns is worth it.
Remember, you can easily redeem your SSB any month you wish with no capital loss, and returns are given to you on a pro-rated basis.
Conversely, SGS bonds and t-bills have to be sold in the open market. The trading volume tends to be low so you might have trouble selling your bond without capital loss. Even at a discount, it may not be an easy thing to find a buyer for your bond.
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