Singapore Savings Bond February 2023: Trend of Oversubscription Ends

Ending a streak of oversubscribed Singapore Savings Bonds (SSB), February 2023’s SSB (GX23020X) sees only S$477.1 million applied out of the S$700 million offered. This trend was barely hanging on last month with an oversubscription of just 1% above the amount offered.

No ceiling amount – first time since May 2022

For the first time in months, there is no ceiling amount. Aside from a total cap of S$200,000 cap across all Singapore Savings Bonds per individual, applicants would be allotted whatever amount they applied for.

Seth
Seth

🔥 Final day for S$200 welcome offer for Amex True Cashback; becomes S$150 from 22nd April onwards

Subscribe to the Telegram for more great deals and updates. Prefer email/WhatsApp? Tap here.

Rates have not been attractive in recent months

Given how t-bills have been offering around 4% p.a. and fixed deposits as high as 4.28% p.a. (or even a mythical 4.4% which is now gone), the relative unpopularity of this month’s SSB is to be expected.

Looking at current SGS yields, it looks like next month’s bond is not going to do any better. In any case, interest rates have been declining slightly of late, and SSBs would not be the only instrument going down in rates. T-bills and fixed deposit rates are expected to dip next month as well.

Nevertheless, SSBs maintain their rates for a 10-year period while offering almost full liquidity. This is not found in other instruments, and those who have funds they want to set aside in low-risk instruments for longer periods of time would still find SSBs useful.

On the bright side, one of its downsides of low allotment amount is no longer true currently. You can put as much as S$200,000 into a single SSB if you wish as long as your total amount across all SSBs does not cross a maximum of S$200,000.

Keep up to date on the best cashback/mile cards, financial products, attractive deals, and more tips to maximise your financial wellbeing by subscribing to my Telegram channel.

Subscribe to the channel, then join the group chat. You would often benefit from the tips shared exclusively in the group chat!

Disclaimer: I may receive an affiliate/referral fee when you sign up for services/products on this site, and such fees keep the site running. I would only recommend services/products I would personally use or recommend to my own friends and family, but I do not provide any warranty or guarantee for the quality of these services/products. Thank you for supporting my site!

Please exercise due diligence when signing up for any service/product as I will not be liable for any personal loss, financial or otherwise. Content published here are my sole views and personal opinion, and none of the information here constitutes personal financial advice nor represents the views of my employer(s).

Leave a Reply