Singapore Savings Bond January 2023 – Third Highest SSB at 2.95% to 3.26% P.A.

A new month and a new Singapore Savings Bond (SSB). January 2023’s SSB is offering 2.95% p.a. average returns in the short-term, and 3.26% p.a. if held for the entire 10-year stretch. The tranche size is slightly smaller than last month’s, coming in at S$900 million.

Year from issue date12345678910
Interest %2.952.952.953.253.363.363.363.473.573.63
Average return per year %*2.952.952.953.023.093.133.163.193.233.26
SBJAN23 GX23010Z Bond Details

Past SSBs compared

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Seth

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Year From Issue Date12345678910
May 20220.861.491.721.841.911.962.012.042.062.09
Jun 20221.431.922.162.302.372.432.462.492.512.53
Jul 20221.692.162.372.472.542.602.632.662.692.71
Aug 20222.002.422.632.742.822.882.922.952.973.00
Sep 20222.632.672.682.692.692.712.732.752.782.80
Oct 20222.602.602.602.622.642.662.682.702.732.75
Nov 20223.083.113.143.153.163.173.183.193.203.21
Dec 20223.263.263.273.343.393.423.443.453.463.47
Jan 20232.952.952.953.023.093.133.163.193.233.26
Feb 20232.842.842.842.842.842.842.862.902.942.97
Mar 20232.762.762.762.762.762.762.782.822.862.90
Average return per year %

A dip compared to the past 2 SSBs

The rates of this bond put January 2023’s SSB as the third highest Singapore Savings Bond to date, but it’s a sign of the times when response to this month’s bond is lukewarm at best.

The relatively soft rates come at a time when bank accounts are giving as much as 5% p.a. Depending on your balance amount and what conditions you fulfil, you can get up to 5% p.a. with UOB One Account, and 4.65% p.a. with OCBC 360 Account.

Fixed deposit rates are on the rise too (I regularly update rates across a few banks here), and people with funds are currently spoiled for choice when it comes to getting good returns for their funds.

Higher allotment amount likely, but is it worth it?

Given the relative unattractiveness of this month’s SSB versus the alternatives, it is likely that the allotment amount per person would be significantly higher. Last month’s SSB, despite being the all-time highest in terms of returns, offered a maximum of S$14,500 per individual. I feel that it is quite possible to get as much as S$20,000 this time round as investors channel funds elsewhere.

SSBs remain a viable choice for things like idle SRS funds which has a more restricted choice of instruments to get higher yield. Many have funds in their SRS accounts, perhaps waiting for a chance to be invested, and such amounts are only getting 0.05% p.a. SSBs provide a liquid solution to holding SRS money.

Also, while many products offer high interest rates now, few can maintain their rates for as long as a 10-year SSB can. If you want to set aside money for years and do not want any volatility, SSB might be one of the better solutions.

Besides, not many people can or want to jump through hoops to fulfil the various conditions of OCBC 360 and UOB One, and SSBs can be more straightforward and convenient for such people.

Nonetheless, do tap here for some things to note before putting money into SSBs.

Application timeline

Note that applying early does not confer you any priority in the allotment process, so it is more ideal to apply nearer to the closing date. This is because your funds are deducted at the time of application and will not earn you interest until the bond is issued.

Opening DateClosing DateAllotmentIssuance
1st business day of month (6PM)4th last business day of the month (9PM)3rd last business day of the month (after 3PM)1st business day of the following month (end of day)
1st December 2022 (6PM)27th December 2022 (9PM)28th December 2022 (after 3PM)3rd January 2023 (by end of day)

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