How to Buy Singapore Savings Bonds
Are you thinking of saving money for rainy days? Perhaps, you are looking for a safe and flexible way to save money for the long term? If yes, then Savings Bonds may be a perfect fit for you.
Savings Bonds are a special type of Singapore Government Securities that suits everyone. It complements other investments and savings, making it a safe way to save for long term.
Buying Singapore Savings Bonds will be a wise choice to invest and save your money. The good thing about it is that the process is quite simple and convenient. But before walking you through the step by step process, there are a few things that you may want to know first. Singapore Savings Bonds (SSB) stands on its tagline “A safe and a flexible way to save for the long term.”. Those three things mentioned in the tagline are the main features of SSB.
It is considered as risk free because the Singaporean Government is fully backing up the Savings Bond. Plus, you can get your investment money back in full amount without capital losses anytime you want to.
- Long – term
With an investment period of up to 10 years, the interest of your investment increases over time. That means, the higher your return the longer you save.
No penalties and no lock in period. You can exit or redeem your investment anytime with one month notice.
Buying SSB also have its benefits:
- Start small
The minimum investment amount starts with as little as $500.
- Retirement Savings
For a retiree or someone that is planning to retire, Savings Bond is the safe and flexible way to save and invest your hard earned money.
- Fund for the Future
You can have access to your funds within one month and earn step up interest at the same time.
- Diversifying Investment
By setting aside a part of your investment to Savings Bond, you can diversify the risk in your investment portfolio to get a higher return.
Buying Singapore Savings Bonds (SSB) will give you a chance to enjoy these features and benefits.
Here are the 4 simple and easy steps:
Step # 1: Set Up a Bank Account
Open a bank account with any of these three local banks (DBS/POSB, OCBC, UOB). The application can only be done through one of these banks. Then, link your bank account to your CDP account. CDP will handle the application process, interest payments and redemptions.
Step # 2: Apply
Start the application process through DBS/POSB, OCBC, UOB ATMs, or by using Internet Banking (iBanking). The amount will be deducted automatically from your bank account.
Couple of things to remember:
- Please have your CDP account number during the application.
- Application over the bank counters is not accepted.
- Time of application is from 6 pm on the 1st business day to 9 pm on the 4th last business day of the month.
- A $2 non-refundable transaction fee will be charged by the bank for every application.
Step # 3: Allotment
They will distribute the new Savings Bonds to all applicants in that month. If the total number of subscriptions exceed the numbers being offered in that particular month, you may not be able to get the full amount that you applied for. A refund will be done on any excess amount back to your bank account. You will receive a notification email of the exact number of Savings Bonds issued to you on the 1st business day of the following month.
Step #4: Collect Your Interest
You will receive your interest every 6 months and it will be automatically credited to your bank on the 1st business day of the month. Your CDP statements will show the interest payments.
Your hard earn money must be use wisely. Saving it is one brilliant decision. The SSB is one tool that will not only help you save your money for the long term, but it will also give you a chance to earn interest that increases over time.
Looking for a loan to start your investment? Or looking for additional funds to boost your current portfolio? Contact us today to find out our interest rates and see if it’s worthwhile to take a loan to invest. As a licensed moneylender in Singapore for more than 10 years, we will be able to provide you with the necessary funds and advice you on which loan is suitable for you.