Singapore Savings Bonds

[ekardo]

anyone surrendering the june SSB 1.92% ? when is a good time to activate this surrender?

 

[reddevil0728]

anyone surrendering the june SSB 1.92% ? when is a good time to activate this surrender?

actually what people decision is should not impact you right.

the decision trigger for yourself is dependent on whether you can get the full amount you redeem in the upcoming tranche.

how much are you talking about?

 

[ekardo]

actually what people decision is should not impact you right.

the decision trigger for yourself is dependent on whether you can get the full amount you redeem in the upcoming tranche.

how much are you talking about?

just wanted to know when is a good time to surrender to maximise.. eg 1st of the month? end of the month ?

 

[foxer77]

just wanted to know when is a good time to surrender to maximise.. eg 1st of the month? end of the month ?

No differ .

 

[reddevil0728]

just wanted to know when is a good time to surrender to maximise.. eg 1st of the month? end of the month ?

No diff. Technically unless you gian interest on the $2 fee

 

[maumu]

just wanted to know when is a good time to surrender to maximise.. eg 1st of the month? end of the month ?

I always prefer to wait till end of month before confirming to surrender... in case things changes through the month.

no difference in terms of reaping the accrued interest whether submitting start or end of month.

 

[IronMan123]

First time bid competitive using cash. 4.10% should be attainable. For CPF, I bid 4.20%. Wish all of you have a higher yield that that.

 

[reddevil0728]

First time bid competitive using cash. 4.10% should be attainable. For CPF, I bid 4.20%. Wish all of you have a higher yield that that.

SSB no bidding. wrong thread?

 

[BBCWatcher]

anyone surrendering the june SSB 1.92% ? when is a good time to activate this surrender?

the decision trigger for yourself is dependent on whether you can get the full amount you redeem in the upcoming tranche.

It can be a little more complicated than that. The decision whether to redeem a (now) low interest Singapore Savings Bond that you want to redeploy to a new SSB also depends on what the cash will be earning while it's trying to get into new SSBs (due to oversubscription) and what subsequent SSB yields will be. These are forecasts you would make for yourself, then you'd act depending on your forecast.

Another complication is that you can redeem SSBs partially. Let's suppose for example you think you can get $15,000 in the next SSB and your current 1.92% SSB is $30,000. OK, you could redeem half of your 1.92% SSB and try getting $15,000 of the next SSB. That's assuming the 1.92% is the best you can do. Maybe there's a bank offering some promotional interest rate that's even better, and you think that's a better option than keeping the other $15,000 at 1.92%. "It depends."

And all of the above assumes that you have the "right" amount of SSBs. SSBs are not well suited to long-term investing. They're terrific for saving for short-term future Singapore dollar spending (an upcoming wedding, university tuition bill, home renovation, home down payment, small business startup costs, baby delivery, etc.) and for a portion of emergency reserve funds.

 

[ekardo]

I always prefer to wait till end of month before confirming to surrender... in case things changes through the month.

no difference in terms of reaping the accrued interest whether submitting start or end of month.

The interest is credited on which part of the month? So actually no need to wait for interest to be credited as long as the funds are in for the 6 months?

 

[reddevil0728]

The interest is credited on which part of the month? So actually no need to wait for interest to be credited as long as the funds are in for the 6 months?

1st business day typically.

you don't even need to wait 6 months. if you redeem earlier than 6months, you will still get the accrued interest thus far

 

[ekardo]

1st business day typically.

you don't even need to wait 6 months. if you redeem earlier than 6months, you will still get the accrued interest thus far

oh ok..I forgotten about this part about the earned interest is by day and not by month or period..

thanks thanks..

 

[vegavega25]

And all of the above assumes that you have the "right" amount of SSBs. SSBs are not well suited to long-term investing. They're terrific for saving for short-term future Singapore dollar spending (an upcoming wedding, university tuition bill, home renovation, home down payment, small business startup costs, baby delivery, etc.) and for a portion of emergency reserve funds.

Why short-term future only?

Long term "investing" - no. But asset diversification across asset classes irrespective of the time period - yes. If the latter includes 10-year maturity sovereign bonds with ~0 risk with decent liquidity, then why not.

 

[BBCWatcher]

Why short-term future only?

I didn't write "only." I have an "and" in what I wrote. Please re-read it.

Statistically you're highly likely to be better off with investment grade corporate bonds for the bond portion of a long-term portfolio.

 

[MrHuatster]

Hi does anyone knows if buying ssb requires one to have a broker? E.g DBS vickers? Or is cdp account sufficient? Planning to help my parents to buy but they don’t have an account!

 

[reddevil0728]

Hi does anyone knows if buying ssb requires one to have a broker? E.g DBS vickers? Or is cdp account sufficient? Planning to help my parents to buy but they don’t have an account!

CDP enough.

but need ibanking if not their own atm card

 

[MrHuatster]

CDP enough.

but need ibanking if not their own atm card

Thank you!

 

[BBCWatcher]

To fill out the answer a little, to purchase a SSB with unrestricted cash you need a CDP account and an ordinary bank account at DBS/POSB, UOB, or OCBC. To purchase a SSB with funds held inside a Supplementary Retirement Scheme (SRS) account there's no need for a CDP account.

 

[maumu]

To fill out the answer a little, to purchase a SSB with unrestricted cash you need a CDP account and an ordinary bank account at DBS/POSB, UOB, or OCBC. To purchase a SSB with funds held inside a Supplementary Retirement Scheme (SRS) account there's no need for a CDP account.

not sure where you get the info from but for UOB you will be asked to enter the CDP account number when you apply for SSB, regardless whether by cash or SRS.

 

[vegavega25]

I didn't write "only." I have an "and" in what I wrote. Please re-read it.

Statistically you're highly likely to be better off with investment grade corporate bonds for the bond portion of a long-term portfolio.

I was refering to "SSBs are not well suited to long-term investing." [but instead] short-term future AND a portion of emergency funds.

Hopefully that portion of emergency funds never needs to be redeemed over the 10 year period. And while held in SSBs, that money can earn an interest higher than a bank deposit.

What are the options for investment grade corporate bonds?