Singapore Savings Bonds

reddevil0728

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Hi all, planning my parent's retirement and was considering SSB. But seeing the current interest rate is ~2% for 10Y wait, would it make more sense to place the money in retirement account and earning 4% interest?

Anyway my parents met FRS and can withdraw anything above the BRS amount
If you are looking purely at % u got ur answer. But what’s your objective and concerns?

anything topped up can’t be withdraw at will
 

Meemoosaa

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Hi all - just realized the SSB interest for June has gone up to 2.5% + on average. Seems like a high note in a very long time.

Anyway, DBS recommended some new products. Nothing exciting to be honest (Ready Life) with a 2.7% compound interest for 5 years hold and can contribute on a monthly basis but I mention SSB looks like a much better deal at current a 2.5%+ with lots more flexibility to withdraw anytime + twice a year auto cash interest payout.

The bank manager said SSB only works if we do not touch the money.... but I thought that is really beside the point. The flexibility to withdraw and twice a year payout is attractive and at 2.5% average for June, even more so.

Am I missing anything or is it an unfair product comparison? They did mention they are trying to compete with CPF rates and the lockup time.

I'm aware we may not necessarily get allocated the exact amount we would like for SSB. However, locking my money for 5 years doesn't sound all that exciting at this stage of my life. Just wondering if SSB experts have any thoughts?
 

ekardo

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Hi all - just realized the SSB interest for June has gone up to 2.5% + on average. Seems like a high note in a very long time.

Anyway, DBS recommended some new products. Nothing exciting to be honest (Ready Life) with a 2.7% compound interest for 5 years hold and can contribute on a monthly basis but I mention SSB looks like a much better deal at current a 2.5%+ with lots more flexibility to withdraw anytime + twice a year auto cash interest payout.

The bank manager said SSB only works if we do not touch the money.... but I thought that is really beside the point. The flexibility to withdraw and twice a year payout is attractive and at 2.5% average for June, even more so.

Am I missing anything or is it an unfair product comparison? They did mention they are trying to compete with CPF rates and the lockup time.

I'm aware we may not necessarily get allocated the exact amount we would like for SSB. However, locking my money for 5 years doesn't sound all that exciting at this stage of my life. Just wondering if SSB experts have any thoughts?
u said it....

SSB is more flexible, and if the rate is simliar, you should know the answer..
 

Buzy_bee

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...
The bank manager said SSB only works if we do not touch the money.... but I thought that is really beside the point. The flexibility to withdraw and twice a year payout is attractive and at 2.5% average for June, even more so.
Bank manager trying to smoke you. The interest will be prorated even when you sell 1 month after you buy.
 

Buzy_bee

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lzydata

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Hi all - just realized the SSB interest for June has gone up to 2.5% + on average. Seems like a high note in a very long time.

Anyway, DBS recommended some new products. Nothing exciting to be honest (Ready Life) with a 2.7% compound interest for 5 years hold and can contribute on a monthly basis but I mention SSB looks like a much better deal at current a 2.5%+ with lots more flexibility to withdraw anytime + twice a year auto cash interest payout.

The bank manager said SSB only works if we do not touch the money.... but I thought that is really beside the point. The flexibility to withdraw and twice a year payout is attractive and at 2.5% average for June, even more so.

Am I missing anything or is it an unfair product comparison? They did mention they are trying to compete with CPF rates and the lockup time.

I'm aware we may not necessarily get allocated the exact amount we would like for SSB. However, locking my money for 5 years doesn't sound all that exciting at this stage of my life. Just wondering if SSB experts have any thoughts?

SSB June issue: 2.53% pa is the average return if you hold it for the full 10 years. If you hold it for 5 years and then redeem, average return is 2.37% pa. However this is guaranteed.


DBS product: seems like there is no mention of "2.7% compound interest" - so this is probably just the projected return? Not guaranteed.
 

BBCWatcher

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Hi all, planning my parent's retirement and was considering SSB. But seeing the current interest rate is ~2% for 10Y wait, would it make more sense to place the money in retirement account and earning 4% interest?

Anyway my parents met FRS and can withdraw anything above the BRS amount
SSBs are attractive for what they are. But if your parents already have enough liquidity — enough to handle a new $1,000 refrigerator if theirs breaks, to pick an example — then CPF RA is the better overall deal. Boosting their RAs means they get more lifelong monthly retirement income. The effective expected yield is substantially higher than current SSBs.

However, if you're concerned about their liquidity, there are a couple better deals available:

1. "All three account" Voluntary Contributions to their CPF accounts would yield >2.5% since some portion would land in their Special Accounts (4.0% interest). This works particularly well if their MediSave Accounts have reached their Basic Healthcare Sums since that portion of the VC would bounce into their OAs. Since they've met the FRS every dollar (except any dollars landing in MA) would be liquid. (MA dollars are only liquid for MediSave purposes.) That beats the current SSB. "All three account" VCs must fit within the CPF Annual Limit. If they're retired and have no compulsory CPF contributions then the full CPF Annual Limit of $37,740 per year per person is available.

2. OA repayment. That'd yield a flat 2.5%. That's very slightly less than the 2.53% yield on the current SSB, but you only get 2.53% on the SSB if you hold it for the full 10 years. And the SSB's interest payouts are "backloaded."

Note also that if you (and any other children, for example) have already set aside a "sufficient" amount for your own retirements in your CPF accounts then you can transfer OA dollars into their RAs. In other words you don't necessarily need unrestricted cash to boost their RAs. You may be able to tap your OA instead. And this works very well right now, actually, since OA at 2.5% is somewhat less attractive for you since you have a longer time horizon.

Consider this scenario, for example:

(a) You (and siblings, if applicable) transfer OA dollars into their RAs instead of cash. (You still maintain sufficient emergency reserve, inclusive of any OA dollars you want to retain for paying your mortgage.)
(b) You instead take your spare cash and prudently invest it in long-term vehicles for your retirement, such as a low cost stock index fund. You wouldn't plan to tap these invested dollars any time soon (before retirement), but in a dire emergency you could — they'd still be liquid.

That should be a very winning formula. Note also that if the recipient of your OA transfer were to die too early then his/her CPF nominee(s) would receive whatever is left over in cash. In other words the OA dollars could bounce right back out as unrestricted cash, free to invest again. So in this formula you upgrade OA dollars to RA/CPF LIFE performance (yes, good), and you upgrade some cash to long-term global stock index performance (yes, also good). And your net liquidity is unaffected. Seems like a great combination to me.
 
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maumu

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buy endowment products or ILP which do not promise 100% capital upon maturity at your own risk...

most - if not all - are just downright overpromising and underdelivering.
 

sohguanh

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buy endowment products or ILP which do not promise 100% capital upon maturity at your own risk...

most - if not all - are just downright overpromising and underdelivering.
Even if endowment promise 100% capital upon maturity they typically tie you X years. The interest earned during X years is never guaranteed unlike olden times policy. They use the word expected returns for e.g so worst case scenario can be 0 dollars interest they are not wrong either.
 

Intel888

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Hi all - just realized the SSB interest for June has gone up to 2.5% + on average. Seems like a high note in a very long time.

Anyway, DBS recommended some new products. Nothing exciting to be honest (Ready Life) with a 2.7% compound interest for 5 years hold and can contribute on a monthly basis but I mention SSB looks like a much better deal at current a 2.5%+ with lots more flexibility to withdraw anytime + twice a year auto cash interest payout.

The bank manager said SSB only works if we do not touch the money.... but I thought that is really beside the point. The flexibility to withdraw and twice a year payout is attractive and at 2.5% average for June, even more so.

Am I missing anything or is it an unfair product comparison? They did mention they are trying to compete with CPF rates and the lockup time.

I'm aware we may not necessarily get allocated the exact amount we would like for SSB. However, locking my money for 5 years doesn't sound all that exciting at this stage of my life. Just wondering if SSB experts have any thoughts?
Depends on your investment objective. These products are not exactly the same.

The bank manager will do better to promote his own products than SSB.
He earns nothing from your investment in SSB.
So which product do you think he would say is better?
 

lzydata

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1​
2​
5​
10​
1-20 May average​
1.66​
2.17​
2.58​
2.76​
SBJUN22​
1.43​
1.92​
2.37​
2.53​

With more than half the month passed, projection of the next SSB's yields. However, you must wait for 1 more month for it to be issued in July.
 

ekardo

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when is the last day of submission for May SSB? 26 May ?

as long as I have CDP, I can submit my request right ?
 

foxer77

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Hi all - just realized the SSB interest for June has gone up to 2.5% + on average. Seems like a high note in a very long time.

Anyway, DBS recommended some new products. Nothing exciting to be honest (Ready Life) with a 2.7% compound interest for 5 years hold and can contribute on a monthly basis but I mention SSB looks like a much better deal at current a 2.5%+ with lots more flexibility to withdraw anytime + twice a year auto cash interest payout.

The bank manager said SSB only works if we do not touch the money.... but I thought that is really beside the point. The flexibility to withdraw and twice a year payout is attractive and at 2.5% average for June, even more so.

Am I missing anything or is it an unfair product comparison? They did mention they are trying to compete with CPF rates and the lockup time.

I'm aware we may not necessarily get allocated the exact amount we would like for SSB. However, locking my money for 5 years doesn't sound all that exciting at this stage of my life. Just wondering if SSB experts have any thoughts?
banker want commission of course said until dragon for their product.

U need to know what u want & comfortable with... for me the above choice i will choose SSB.
 

reddevil0728

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May I check how to redeem the Ssb ? How fast can we get bk the $?
Thanks
Did you check out ssb website?

the information is all there.

how fast can be as fast as a few days or just little over a month. Depending on when you apply.
 

m0n0n0ke

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My cdp had approved and activated
But my dcs is still under pending

Can i still apply ssb?
 

crystalnox

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My cdp had approved and activated
But my dcs is still under pending

Can i still apply ssb?
Can apply already, DCS no hurry. Your first payment still months away even if you bought this month's issue.
 
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