SRS Investments

[limpoop]

The 5 year bond (N517100F) will go on sale in March, 2017. There's a 10 year bond (NZ07100S) available for sale next month (February, 2017).

You're much better off with a 5 or 10 year bond instead of a 60 month or 120 month Fixed Deposit. Yes, every SRS custodian allows buying original issue SGSs (what I'm recommending instead of Fixed Deposits), and most if not all allow buying/selling SGSs on the secondary market (not what I recommend, but probably still better than FDs).

Singapore Government Securities are backed by the full faith and credit of the AAA-rated Singapore government, no matter how much of them you hold. (There is no $50K SDIC limit.) It's the safest possible asset you can hold in a SRS, and it happens to offer better yields than a bank FD.

May I ask you how to buy new SGS bonds using SRS? I checked DBS site only cash is allowed (No mention of SRS/CPF), see https://www.dbs.com.sg/personal/ibanking/faq/sgsbond.page

The only way is buy from brokers like Kayhian or DBS Vickers and pay fees and commissions?

 

[limpoop]

The plans are only lousy if is not something that youre looking for. A course in the university is only lousy when you've no interest in the subject.



I couldnt find the product link online, but is just a simple 5 year capital guaranteed savings plan for limited time.

OCBC got 3-year single premium 1.7%pa using SRS https://www.ocbc.com/personal-banking/premier/cny-2017-promotions.html

 

[BBCWatcher]

May I ask you how to buy new SGS bonds using SRS?

First, you will need a CDP account, so go get one of those if you don't have one already. Second, you need cash in a SRS. Third, you need a Singapore Government Security you want to buy, not a Singapore Savings Bond. I provided two examples below. Fourth, you will probably have to visit a branch and ask for the SGS order form. "But wouldn't you like a horribly overpriced unit trust instead?" Be politely persistent. Eventually the fifth person asked in the branch will know what you're talking about, and they'll dig out the form. The form will ask where you want funds to come from, and that's where you put the SRS details. Fill out the form very carefully, and triple check it.

Unfortunately DBS/POSB doesn't let you conduct this particular transaction through the ATM or iBanking, but it can be done. (I'm not sure about OCBC and UOB and their Internet banking.) And it's a free transaction and free custody, except for the price of the bond.

You can also try calling DBS and asking them to get the form ready for you in the branch.

By the way, I highly recommend you put in a non-competitive bid.

 

[limpoop]

First, you will need a CDP account, so go get one of those if you don't have one already. Second, you need cash in a SRS. Third, you need a Singapore Government Security you want to buy, not a Singapore Savings Bond. I provided two examples below. Fourth, you will probably have to visit a branch and ask for the SGS order form. "But wouldn't you like a horribly overpriced unit trust instead?" Be politely persistent. Eventually the fifth person asked in the branch will know what you're talking about, and they'll dig out the form. The form will ask where you want funds to come from, and that's where you put the SRS details. Fill out the form very carefully, and triple check it.

Unfortunately DBS/POSB doesn't let you conduct this particular transaction through the ATM or iBanking, but it can be done. (I'm not sure about OCBC and UOB and their Internet banking.) And it's a free transaction and free custody, except for the price of the bond.

You can also try calling DBS and asking them to get the form ready for you in the branch.

By the way, I highly recommend you put in a non-competitive bid.

Thanks for the info and I remembered long time ago I went to the biggest local bank at Orchard Road to ask them to help to submit a new SGS bond bid, the counter staff looked like I was from Mars, asked for the manager-in-charge, manager also looked like just wake up after 50 years of sleep, asked for senior staff also the same, he finally called their HQ and after a long 15 minutes, asked me to go to Raffles Place branch and look for "Mr XXX" and he would assist me!

But after so many years past still cannot submit new SGS bonds bids on-line using SRS, DBS said cash only!

 

[BBCWatcher]

Sounds familiar! It's not a common transaction, to be sure. SRSs are already pretty rare. But it can be done, honest. I'd call ahead to try to avoid branch antics.

 

[henrylbh]

Sounds familiar! It's not a common transaction, to be sure. SRSs are already pretty rare. But it can be done, honest. I'd call ahead to try to avoid branch antics.

Ha ha more rare is to open an account 'Estate of XXX' The counter staff had to refer me to the branch manager. The branch manager then referred to the HO and it took quite a while trying to complete it. The account is still with me for about 9 years as I chose not to distribute it or close it.

 

[jingle_babble]

interesting BBCwatcher...didnt know that SRS can be used for original issuance. i always thought we have to go to secondary mkt..

Thanks!

 

[BBCWatcher]

interesting BBCwatcher...didnt know that SRS can be used for original issuance.

The three SRS custodians don't advertise this option since they don't make much money on SGS issues, and you may get blank stares from many branch employees, but yes. I know someone who did it. It's a paper form (or possibly pair of forms) at DBS/POSB that's in their electronic form library. MAS requires them to do this if they want to be primary SGS dealers, and they do.

Note that SGSs can be called before maturity, so you still have to monitor your SRS even if your plan is to hold to maturity.

CPFIS can also be used to purchase initial issue SGSs, but that only really makes sense as a maneuver to avoid an OA "sweep" when purchasing a HDB leasehold on credit. In that case you'd purchase something with a short maturity.

 

[oceanicmanta]

i just email OCBC asking about bidding for Feb17's SGS issue using my SRS

let's see what they say

thanks BBC for the tip

 

[star2008]

Hi BBCWatcher,

Thanks for the info on SGS.

The actual coupon rate depends on the competitive bidding. So for non-competitive bid, will we only know the actual coupon rate after we have bought the SGS?

Do we based on yield of the secondary market to estimate for the new coupon? Eg NX11100X (Mature on JUN 2021) yield about 1.8%, and NX13100H (mature on JUL 2023) yield about 2.2%, so for new issue of the 5 year bond (N517100F) coupon rate will be somewhere between 1.8 to 2.2%?

Thanks

 

[limster]

The plans are only lousy if is not something that youre looking for. A course in the university is only lousy when you've no interest in the subject.

Poor analogy. Some universities are clearly better than others. Just because you have an interest in the course doesn't transform a bottom 10 university course into a good university course.

Likewise, lousy plan is lousy plan. For example, I recall the thread where some agents try to explain why their savings plan is better even though SSB gives higher return with not much of a lock in period. While their savings plan had lower return and got lock in period.

Of course, lousy plan could mean more profits to insurer/agent, so from that perspective its a good plan. I am vested in insurance companies so please keep those dividends coming...

 

[nautilus]

If anyone has successfully obtained the form from dbs/posb/OCBC/UOB , perhaps they can share a copy of a picture of the form here.

What are the information required for bidding SGS bonds?

 

[BBCWatcher]

So for non-competitive bid, will we only know the actual coupon rate after we have bought the SGS?

Correct, but you're exactly right about looking at current yields for previously issued bonds. The MAS publishes that information daily. You should expect to get something very similar to those yields, for equal maturities.

 

[nautilus]

BBC,

For SGS, do you bid for the value or the yield?

 

[BBCWatcher]

For SGS, do you bid for the value or the yield?

When you place a bid you indicate how much bond nominal value you want, in increments of $1000. The bond will have a fixed coupon rate. For example, when the 30 year bond was sold (reopened) last year, it had a coupon rate of 2.75%. That was attractive to the market, so $1000 nominal bond value actually sold at auction for about $1110 (~2.25% yield). You have to account for this variability when you place an order. If you don't have enough funds in your SRS to handle this variability I'm not exactly sure what happens by default, but as I recall the order form asks that very question. As I recall you have the option to automatically pull a few more dollars into your SRS from your bank account (if still eligible to top up your SRS), and that's generally the best option.

 

[nautilus]

When you place a bid you indicate how much bond nominal value you want, in increments of $1000. The bond will have a fixed coupon rate. For example, when the 30 year bond was sold (reopened) last year, it had a coupon rate of 2.75%. That was attractive to the market, so $1000 nominal bond value actually sold at auction for about $1110 (~2.25% yield). You have to account for this variability when you place an order. If you don't have enough funds in your SRS to handle this variability I'm not exactly sure what happens by default, but as I recall the order form asks that very question. As I recall you have the option to automatically pull a few more dollars into your SRS from your bank account (if still eligible to top up your SRS), and that's generally the best option.

Thanks BBC for the information.

 

[linusz]

Uob has a service charge of 2 per quarter. Is this charged or waived.

For transaction it's 2 per 1000 shares capped at 20. What's ocbc. Anyone?
For uob it seem the waiver is till end 2016. For uob holders do check

Sent from Samsung SM-N9005 using GAGT

 

[zened88]

First, you will need a CDP account, so go get one of those if you don't have one already. Second, you need cash in a SRS. Third, you need a Singapore Government Security you want to buy, not a Singapore Savings Bond. I provided two examples below. Fourth, you will probably have to visit a branch and ask for the SGS order form. "But wouldn't you like a horribly overpriced unit trust instead?" Be politely persistent. Eventually the fifth person asked in the branch will know what you're talking about, and they'll dig out the form. The form will ask where you want funds to come from, and that's where you put the SRS details. Fill out the form very carefully, and triple check it.

Unfortunately DBS/POSB doesn't let you conduct this particular transaction through the ATM or iBanking, but it can be done. (I'm not sure about OCBC and UOB and their Internet banking.) And it's a free transaction and free custody, except for the price of the bond.

You can also try calling DBS and asking them to get the form ready for you in the branch.

By the way, I highly recommend you put in a non-competitive bid.

Hi BBCWatcher, I would like to do a sweep of my OA via the 2 year bond and would like to ask what is a non-competitive bid?

 

[zened88]

Just to check if i'm on the right track,

1) I went to https://secure.sgs.gov.sg/fdanet/BondPricesAndYields.aspx

2) Did a check on: NX09100W, 2.500%, 01 JUN 2019

and latest price on 20 Jan was 102.63

3) So i should bid around that price?

 

[orange_sky]

Hi BBCWatcher, I would like to do a sweep of my OA via the 2 year bond and would like to ask what is a non-competitive bid?

It means you states only the amount you are buying but not the price. The price will be determined by the competitive auction (participated usually by financial institutions)