Singapore Savings Bonds

[Bedokian]

Since the deposit is in multiples of $500, one could just do a monthly or quarterly contribution to it. This can form part of my bond component in my portfolio.

But with the cap, those with a larger portfolio may consider this before spilling the excess over to the ABF or other bonds.

 

[Geforce3]

Hmm like that those who out money in fix do might as well put it there?

 

[Obama486]

nowadays so much competition for consumers to put their $$

OCBC 360, can get 3%

SGS 2-3%

SSB... my gut feel is also 2-3% interest rate range, given the holding period is 1 month to 10 years


as such we are likely to see bank interest rates spiking up
1 year deposits should go up towards 2% levels

Sibor is already 1% and could move towards 2%

in short

better to be lender than borrower

 

[[[ForeverAlone]]]

nowadays so much competition for consumers to put their $$

OCBC 360, can get 3%

SGS 2-3%

SSB... my gut feel is also 2-3% interest rate range, given the holding period is 1 month to 10 years


as such we are likely to see bank interest rates spiking up
1 year deposits should go up towards 2% levels

Sibor is already 1% and could move towards 2%

in short

better to be lender than borrower

huh so bro , is wise to put ? in long run?

 

[Obama486]

huh so bro , is wise to put ? in long run?

of course

put in under fixed income portfolio

I will take the max for sure

 

[[[ForeverAlone]]]

of course

put in under fixed income portfolio

I will take the max for sure

max means??

 

[linxiaobei]

.
All in. LOL

Sent from The Sun using GAGT

 

[Shion]

Investors can put in a minimum of S$500, and in subsequent multiples of S$500, for 10 years. There will be a limit to the total investment amount so that it can maximise participation and to ensure a broad reach, said MAS.

Source: http://www.channelnewsasia.com/news/singapore/details-on-savings-bonds/1756338.html

I am interested in this, sounds good to me.

 

[Obama486]

max means??

The max limit that is garmen stamped

Like for banks its first 50k

So for SSB there should be a limit too, so i will max that limit

Got it?

 

[[[ForeverAlone]]]

The max limit that is garmen stamped

Like for banks its first 50k

So for SSB there should be a limit too, so i will max that limit

Got it?

so 5ok max and you intend to put how long?

actually they haven't release the interest rates right?


I doubt will be on par with banks one as they have penalties on bond , contract where by in the middle of the investment if you want to withdraw have to pay a penalty ....

 

[Obama486]

so 5ok max and you intend to put how long?

actually they haven't release the interest rates right?


I doubt will be on par with banks one as they have penalties on bond , contract where by in the middle of the investment if you want to withdraw have to pay a penalty ....

you dunno how to read is it???????
but if you are blind, how can u be using the forum?


interest rates comparable to SGS!

maturity 1 month to 10 years.. up to u
need money that time just withdraw...

 

[lzydata]

This is shaping up to be a very good deal. If you have spare cash even for just 1 month, you can put it in SSBs, principal guaranteed. If you see there is a good FD offer, withdraw your SSB with no penalty and interest accrued, and go put your money in the FD instead. How to lose?

Press release
http://www.mas.gov.sg/News-and-Publ...e-Savings-Bonds-for-Individual-Investors.aspx
Factsheet
http://www.mas.gov.sg/News-and-Publ...e-Savings-Bonds-for-Individual-Investors.aspx

Interest rates will be set yearly and upon withdrawal one will get principal plus accrued interest. The factsheet's example uses 0.9% pa for the 1st year, 1.5% pa for the 2nd year (effective rate for 2 years = 1.2% pa) and guides that the effective rate over 10 years will be equivalent to the 10-year SGS's yield, roughly 2-3% pa.

I also notice that they have restricted SSBs to individual investors. Presumably even foreigners can buy them - unless they impose a new condition such as having a bank account or even a CPF account.

 

[EvilPaladin]

nowadays so much competition for consumers to put their $$

OCBC 360, can get 3%

SGS 2-3%

SSB... my gut feel is also 2-3% interest rate range, given the holding period is 1 month to 10 years


as such we are likely to see bank interest rates spiking up
1 year deposits should go up towards 2% levels

Sibor is already 1% and could move towards 2%

in short

better to be lender than borrower

i like to add on that those with huge loans better cut them down... if the bank have to play the gov game by increasing interest for FD/whatever saving instruments... then the IR on loans will most likely go up as well... (someone has to pay for it)


Be careful for those whose going to take big loans.

 

[Obama486]

This is shaping up to be a very good deal. If you have spare cash even for just 1 month, you can put it in SSBs, principal guaranteed. If you see there is a good FD offer, withdraw your SSB with no penalty and interest accrued, and go put your money in the FD instead. How to lose?

Press release
http://www.mas.gov.sg/News-and-Publ...e-Savings-Bonds-for-Individual-Investors.aspx
Factsheet
http://www.mas.gov.sg/News-and-Publ...e-Savings-Bonds-for-Individual-Investors.aspx

Interest rates will be set yearly and upon withdrawal one will get principal plus accrued interest. The factsheet's example uses 0.9% pa for the 1st year, 1.5% pa for the 2nd year (effective rate for 2 years = 1.2% pa) and guides that the effective rate over 10 years will be equivalent to the 10-year SGS's yield, roughly 2-3% pa.

I also notice that they have restricted SSBs to individual investors. Presumably even foreigners can buy them - unless they impose a new condition such as having a bank account or even a CPF account.

I think only to individual singaporeans only ba, MAS is usually quite strict

once this product is out, retail investors will no longer trade SGS for sure, since its superior

SGS will be trade by institutional investors only

 

[reinphd]

so 5ok max and you intend to put how long?

actually they haven't release the interest rates right?


I doubt will be on par with banks one as they have penalties on bond , contract where by in the middle of the investment if you want to withdraw have to pay a penalty ....

Dude, they have yet to announce what is the max that a retail investor can invest in. 50k was an example given by him.

The rates are speculated to be between 2-3% because they said it's almost equivalent to long term SGS. look for 10-15 years and up.

the thing is at 2-3%, most of the banks' FD are really no fight. they need to up all their interest rates to better attract retail investors

 

[Obama486]

http://www.mas.gov.sg/~/media/resource/news_room/press_releases/2015/Factsheet Savings Bonds.pdf

rates will be pegged to SGS, that's why i said 2-3%

for latest SGS rates
please see

https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx

anyway for individual investors
SSB is definitely much better then SGS
since u are getting SGS returns but DO NOT HAVE ANY DOWN SIDE*

that's why it will not be tradable in the market, as it would be worth above PAR value for sure

since its better than SGS, of course I would like to take the max amount possible

 

[winguy]

So invest $cap/10 over 10 years and you have a ssb ladder which pays ~3.3% every year?

Or would you invest $cap right at the start and reinvest every 10yrs?

 

[reinphd]

So invest $cap/10 over 10 years and you have a ssb ladder which pays ~3.3% every year?

Or would you invest $cap right at the start and reinvest every 10yrs?

I doubt it may hit 3.3%. If it does, i think all the FD will close shop. Even ocbc 360 will evaporate. I think it is hard to milk all the % of the interest because they will most probably release yearly? you may put all then suddenly for the next year they up the interest rate and your average interest rate would have averaged down by a little? Not sure am I making any sense. I stand to be corrected

 

[Obama486]

So invest $cap/10 over 10 years and you have a ssb ladder which pays ~3.3% every year?

Or would you invest $cap right at the start and reinvest every 10yrs?

I think the supply will be greatest only in the beginning

after which monthly the new supply will be less and thus limited (a cap in which we can purchase therefore makes sense)

basically those who opt out (get back principal) will allow new investors to take over their positions (done monthly)

and also once the SSB matures, the product will be rolled over to exisiting or new bond holders. new SSB can also be created, which this may be done yearly

so basically MAS is the one that decides how big the SSB pool will be

for example a 10 billion dollar pool, then the bonds will keep rolling over inside this portfolio managed by MAS

they can expand or reduce supply by controlling the size of this SSB pool

Basically MAS can be seen as a portfolio manager, with a huge basket of SGS bonds. buying into the SSB, is like buying a small piece of that basket... if u dun want it, others can take over your piece

 

[Obama486]

http://stockbrokerplayspoker.blogspot.sg/2015/03/singapore-savings-bondsssb-details-out.html

people already start blogging about SSB liao

think it would be quite a hot product

hope it doesn't end up like balloting for ipo.. need to see luck to get.. then is damn sianz liao