Typical of Singapore Savings Bonds (SSB) in recent months, December 2022 SSB (SBDEC22 GX22120S) is yet again oversubscribed. Of the $1 billion offered, $1.7 billion was applied for.
Maximum amount of $14,500 allocated per person
If you subscribed to $14,000 or less, you will get the full amount you subscribed for.
Applications above this figure will get either $14,000 or $14,500 on a random basis, and approximately 39% of such individuals would be allotted the higher amount.
The rest of your funds should have been refunded to you.
Despite being the tranche with the highest-ever returns since the introduction of Singapore Savings Bond 7 years ago in 2015, the December 2022 SSB has a higher ceiling amount compared to previous SSBs. August 2022’s SSB, for instance, offered only $9,500 maximum per individual. This is a result of less money being put into this month’s tranche – only $1.7 billion was applied for compared to last month’s $2.2 billion.
It could be that many alternatives have now caught up to the rates given by SSB. T-bills have now risen to around 4% p.a. returns for 6-month tenures, and banks have also upped their fixed deposit rates to around the 4% p.a. mark.
Nevertheless, SSB remains a strong contender for your funds, particularly if you wish to set aside your money for a longer time period. While other instruments might give you higher returns for now, SSB is fairly unique in that it gives its rates for as long as ten years. It also has the advantage of letting you withdraw during its tenure, giving you the flexibility of taking out funds partially or in full, or leaving it there to continue attracting returns.
I personally applied for $15,000 worth this month using my SRS, and intend to share more about my strategy in an upcoming article. Stay subscribed to my Telegram if you are looking forward to that, or you can first watch my video on SRS.
You should still pay attention to some of SSB’s issues, and if you haven’t already watched my video, I’ve placed it here so you know what to look out for before investing in SSB:
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