Singapore Savings Bonds

[jeffong]

Yah lor.. don't understand why so many people kanchiong to redeem earlier tranches unless they already maxed out their 200k entitlement. Max allotment for Aug is 9.5k and 13.5k for Sep. For 23k combined, the interest differential is basically minimal when you are unlikely to get anywhere near that allotment for Nov and subsequent months if interest rate keeps going up.

I reckon a more appropriate strategy would be to split your investments into both SSB and T-Bills during this period if you are risk averse to equities during this period of uncertainty.

 

[hyperfuse]

Yah lor.. don't understand why so many people kanchiong to redeem earlier tranches unless they already maxed out their 200k entitlement. Max allotment for Aug is 9.5k and 13.5k for Sep. For 23k combined, the interest differential is basically minimal when you are unlikely to get anywhere near that allotment for Nov and subsequent months if interest rate keeps going up.

I reckon a more appropriate strategy would be to split your investments into both SSB and T-Bills during this period if you are risk averse to equities during this period of uncertainty.

because some ppl only have small amount of monies to deploy. So they want the best of it. For example, if a person has only $20k savings that is intended for such purposes, then yea i assume they will want the best rate.

Not everyone has a huge arsenal of monies to deploy. Some rather put monies in the stock market instead of SSB and treat SSB to store their emergency funds only and they cap their emergency funds to like $20k only. Just assuming.

So different people have different monetary appetites.

earlier tranches can be like only 2 percent to 2.53 percent for example. So definitely wiser to redeem that and put for the newer upcoming tranches. Just $4 for the fees of redeeming and applying again. The difference in interest gain definitely way more than $4 and doesnt take any effort to redeem and apply. Can be done within 2 minutes.

 

[sgbird]

Why need t redeem! Unless alreddy hor 200k?

Got small money to play play mah. Also Tbill more attractive than SSB

 

[jeffong]

because some ppl only have small amount of monies to deploy. So they want the best of it. For example, if a person has only $20k savings that is intended for such purposes, then yea i assume they will want the best rate.

Not everyone has a huge arsenal of monies to deploy. Some rather put monies in the stock market instead of SSB and treat SSB to store their emergency funds only and they cap their emergency funds to like $20k only. Just assuming.

So different people have different monetary appetites.

earlier tranches can be like only 2 percent to 2.53 percent for example. So definitely wiser to redeem that and put for the newer upcoming tranches. Just $4 for the fees of redeeming and applying again. The difference in interest gain definitely way more than $4 and doesnt take any effort to redeem and apply. Can be done within 2 minutes.

Well that's assuming you get back the same allotment from previous tranches. If you get a significantly reduced tranche, isn't it back to square one where you have excess funds sitting in your bank account unless you deploy them in T-Bills instead.

 

[hyperfuse]

Got small money to play play mah. Also Tbill more attractive than SSB

i dont find tbill super attractive because such short tenure.

i want flexibility for my monies yet have good interest rate for the long term as all this are spare funds that I probably wouldnt use at all.

 

[hyperfuse]

Well that's assuming you get back the same allotment from previous tranches. If you get a significantly reduced tranche, isn't it back to square one where you have excess funds sitting in your bank account unless you deploy them in T-Bills instead.

already assume it will be about 10k per tranche. i am okay with it. i use my wife name as well, so its for 2 accounts. creating a SSB ladder. these are spare funds that i wont touch ever i suppose.

I do have monies in various platforms such as AIA 3 percent 3 year policy, Gro income, Great Eastern, top ups to CPF SA, holding S&P 500 etfs etc

I also put some funds in Tbill for fun but the short tenure of 6 months or 1 year dont really attract me. i prefer longer tenures with good interest rate because who knows what 6 months or a year might be, interest rate might drop or go up further, really depends. If interest rate drops, and if one has most monies in Tbills, by then once it matures, your funds also sitting around and other products might have drop interest. Whereas for SSB, i can ensure its for 10 years with good interest and liquidity. Can change anytime or redeem as and when for better products.

 

[BBCWatcher]

I reckon a more appropriate strategy would be to split your investments into both SSB and T-Bills during this period if you are risk averse to equities during this period of uncertainty.

When has there ever been a period of certainty?

 

[sohguanh]

I also put some funds in Tbill for fun but the short tenure of 6 months or 1 year dont really attract me. i prefer longer tenures with good interest rate because who knows what 6 months or a year might be, interest rate might drop or go up further, really depends. If interest rate drops, and if one has most monies in Tbills, by then once it matures, your funds also sitting around and other products might have drop interest. Whereas for SSB, i can ensure its for 10 years with good interest and liquidity. Can change anytime or redeem as and when for better products.

I think at this point for ppl it is how much to allocate to SSB (long term) and how much to allocate for T-bill (short term). You mention you also put some funds into T-bill which means you do diversify just the ratio allocation would be different from other ppl I guess. 90% to SSB 10% to T-bill for e.g etc

 

[hyperfuse]

I think at this point for ppl it is how much to allocate to SSB (long term) and how much to allocate for T-bill (short term). You mention you also put some funds into T-bill which means you do diversify just the ratio allocation would be different from other ppl I guess. 90% to SSB 10% to T-bill for e.g etc

yea i prefer to allocate funds to SSB. Will be allocating $400k in total as using me and wife name.

 

[efreelancer]

anyone redeemed last month and got the cash in UOB alr?

 

[sohguanh]

anyone redeemed last month and got the cash in UOB alr?

Mine is DBS and I get it on 03 Oct 2022. You need to check with UOB or double confirm inside CDP the Direct Credit Service linked bank account is your UOB account?

 

[sohguanh]

Just checking for those who redeem SBJUN2022 GX22060F and receive on 03 Oct 2022 your calculation is close? I am using formula 124 / 365 x 143 = 48.58 assume for 10k placement so easier to count. I get 13 cents lesser as the redeemed amount is $10,048.45.

This lead me to think the so called first year at 1.43% , second year 2.41% etc all those are for display with 2 decimal point in reality it is a long floating number with many digits behind the decimal point?

issue date
1-30 June 2022 - 30 days
1-31 July 2022 - 31 days
1-31 Aug 2022 - 31 days
1-30 Sep 2022 - 30 days
1-2 Oct 2022 - 2 days
Total 124 days

Edit:
There is a formula and I find it strange one. Notice that 183?

https://www.mas.gov.sg/bonds-and-bills/investing-in-singapore-savings-bonds/how-to-redeem
AI = (CPN / 2) x (DC / PC) x H
AI = 0.00715 x (124 / 183) x 10000
AI = 48.448 ~= 48.45 <- so I earn a bit instead

AI = Accrued Interest
CPN = Annual interest rate (as percentage) and not more than 2 decimal place
DC = Actual day count from most recent interest payment, but not including next interest payment
PC = Total number of days from most recent interest payment, but not including next interest payment
H = Redemption amount

Edit2:
I think I now know why the 183. Interest supposed to be given on 1 Dec 2022 so from issue date 1 Jun 2022 - 1 Dec 2022 (exclude this day itself) is 183 days. When we redeem our monies only stay inside for 124 days so pro-rate is 124 / 183

CPN / 2 also make sense as the interest payment is paid 2 times a year so if you redeem after the 6th month mark you already take the earlier 6 month interest. When count the accrued interest for the subsequent redemption must remove that else mas rugi

 

[efreelancer]

Mine is DBS and I get it on 03 Oct 2022. You need to check with UOB or double confirm inside CDP the Direct Credit Service linked bank account is your UOB account?

Thanks. Ya just updated my CDP bank account as I closed my old uob bank account. Though I redeemed in uob using my new bank account. Anyone know how long will CDP takes to credit again?

 

[sohguanh]

Thanks. Ya just updated my CDP bank account as I closed my old uob bank account. Though I redeemed in uob using my new bank account. Anyone know how long will CDP takes to credit again?

Redeem can do from any one of the bank dbs ocbc uob. The credit of the monies like redemption is follow what is inside CDP DCS linked. You can check with CDP how long it takes for the DCS to be "working" based on your last update perhaps?

 

[shadow84]

Thanks. Ya just updated my CDP bank account as I closed my old uob bank account. Though I redeemed in uob using my new bank account. Anyone know how long will CDP takes to credit again?

Shld be 1 week or 5 working days. I also kena this issue when my bank acct in CDP had alrdy closed and not updated to new.

 

[blueskull]

what max will nov ssb give? per person allocation

 

[Uramasa]

I think this month will be serverly oversubscribed

 

[reddevil0728]

what max will nov ssb give? per person allocation

you will know on 27 oct around 3pm.

I think this month will be serverly oversubscribed

how much you speculate?

 

[yobyella]

I think this month will be serverly oversubscribed

True. Rates quite attractive.

 

[Uramasa]

True. Rates quite attractive.

Very attractive, even higher than FD.