SSB Vs T Bills

[camholicx]

Which is better?
I know SSB is 10 yrs tenure, but how do we know T bills % rate when we placed our $ in?

Is T bill safe?

 

[dork32]

Is T bill safe?

tbill is by mas, ssb is by mas, which one is safer?

dbs savings vs dbs fd, which one is safer?

 

[dork32]

actually tbills is safer. it is only 6 months, ssb 10 years, chance for our garmen to collapse in 10 years higher than 6 months

 

[dude123]

Which is better?
I know SSB is 10 yrs tenure, but how do we know T bills % rate when we placed our $ in?

Is T bill safe?

I think Fixed Deposit safer. Choose local bank (DBS, UOB & OCBC). They won't collapse. Govt may change during the next election and not sure if the new govt will recognise the T-bill you bought. So go for FD instead.

 

[dappermen]

there is a gd video well explained on the diffce

but they disallowed such posting, sorry

go youtube n search for it @camholicx

 

[dappermen]

Is T bill safe?

assuming u r ref to those by sg govt? 101% safe
and there r short terms like 6mths to it

 

[limster]

actually tbills is safer. it is only 6 months, ssb 10 years, chance for our garmen to collapse in 10 years higher than 6 months

I think Fixed Deposit safer. Choose local bank (DBS, UOB & OCBC). They won't collapse. Govt may change during the next election and not sure if the new govt will recognise the T-bill you bought. So go for FD instead.

Its true FD is safer than govt bonds, because FD is guaranteed by SDIC!

T-bill and SSB is not guaranteed by SDIC!

Need to spread more fear, so that fewer people bid, interest rate can be higher!

 

[sohguanh]

Which is better?
I know SSB is 10 yrs tenure, but how do we know T bills % rate when we placed our $ in?

Is T bill safe?

I think cannot say which is better as one like you say is 10 years tenure and you know the rate when it is announced. T-bill is short term and you dunno the rate until the auction result come out. So to me they are a bit different.

SSB,T-bill all come out from MAS so what do you mean by safe? Are you saying becuz T-bill upfront you dunno the rate, the result come out can be super low so it is not safe? If that is the thinking then you need to re-think how both SSB and T-bill works and choose one which you find comfortable. T-bill auction remind me of COE bidding. Scared don't bid so don't buy car lor.

 

[dork32]

Its true FD is safer than govt bonds, because FD is guaranteed by SDIC!

T-bill and SSB is not guaranteed by SDIC!

Need to spread more fear, so that fewer people bid, interest rate can be higher!

you damn good man. who is the boss of sdic. it is same mas that issue the tbills

 

[dork32]

I think cannot say which is better as one like you say is 10 years tenure and you know the rate when it is announced. T-bill is short term and you dunno the rate until the auction result come out. So to me they are a bit different.

SSB,T-bill all come out from MAS so what do you mean by safe? Are you saying becuz T-bill upfront you dunno the rate, the result come out can be super low so it is not safe? If that is the thinking then you need to re-think how both SSB and T-bill works and choose one which you find comfortable. T-bill auction remind me of COE bidding. Scared don't bid so don't buy car lor.

lets compare lah.

liquidity
ssb is very liquid. you can sell back to mas one a month. tbills must wait for 6 months. no one here is able to advise on the secondary market for tbills

tenure
6 mths vs 10 years. our normal perception is that longer tenure must give higher interest. my view is this: it really depends on the environment. under a decreasing rate environment, you may want to lock in to the high interest rate for a long period. under a rising interest rate, you want your money to come back quickly so that you can reinvest at a higher rate. what is current environment now?

yield
it seems the current yield of tbill is significantly higher than ssb.

maintenance
you have to do maintenance constantly for tbills, every 6 months, when the money comes back, you have to think of something for it. ssb no need do maintenance for the next 10 years

 

[sohguanh]

lets compare lah.

liquidity
ssb is very liquid. you can sell back to mas one a month. tbills must wait for 6 months. no one here is able to advise on the secondary market for tbills

tenure
6 mths vs 10 years. our normal perception is that longer tenure must give higher interest. my view is this: it really depends on the environment. under a decreasing rate environment, you may want to lock in to the high interest rate for a long period. under a rising interest rate, you want your money to come back quickly so that you can reinvest at a higher rate. what is current environment now?

yield
it seems the current yield of tbill is significantly higher than ssb.

maintenance
you have to do maintenance constantly for tbills, every 6 months, when the money comes back, you have to think of something for it. ssb no need do maintenance for the next 10 years

Not saying you are wrong in your post. Just asking for you say you got X dollars you will all in to T-bill? Or you will say put X / Y into T-bill and X / Z into SSB? That is participate in both of them or all in into one only?

 

[BTO_Brah]

I think I'll eventually buy some SSB, but for now the T-bill rates and tenor are unbeatable

 

[reddevil0728]

Which is better?
I know SSB is 10 yrs tenure, but how do we know T bills % rate when we placed our $ in?

Is T bill safe?

define better
refer to t-bill thread first 2 posts
define safe

actually tbills is safer. it is only 6 months, ssb 10 years, chance for our garmen to collapse in 10 years higher than 6 months

but technically ssb can redeem anytime even earlier than t-bills

I think Fixed Deposit safer. Choose local bank (DBS, UOB & OCBC). They won't collapse. Govt may change during the next election and not sure if the new govt will recognise the T-bill you bought. So go for FD instead.

erm. if you think government change and may not recognise t-bill, then i am not sure how safe our local banks will be in that scenario.

 

[lzydata]

SSB advantages:
- yields are known beforehand
- liquidity: you can hold it for as short as one month
- but if you choose to hold on to it, you get higher average returns with time
- downside protection: never risk going below par when redeeming

T-bill advantages:
- more responsive to interest rate movements so now it is higher than SSB (SSB yields are pegged to the average of the previous month's SGS yields so there is a lag)
- no fees to apply if done with online banking

 

[reddevil0728]

SSB advantages:
- yields are known beforehand
- liquidity: you can hold it for as short as one month
- but if you choose to hold on to it, you get higher average returns with time
- downside protection: never risk going below par when redeeming

T-bill advantages:
- more responsive to interest rate movements so now it is higher than SSB (SSB yields are pegged to the average of the previous month's SGS yields so there is a lag)
- no fees to apply and redeem if done with online banking

redeem?

 

[lzydata]

redeem?

Redeeming SSBs. What's wrong?

 

[reddevil0728]

Redeeming SSBs. What's wrong?

The last bullet point refers to Tbill though

 

[havetheveryfun]

Its true FD is safer than govt bonds, because FD is guaranteed by SDIC!

T-bill and SSB is not guaranteed by SDIC!

Need to spread more fear, so that fewer people bid, interest rate can be higher!

actually havent happen before so no one really knows if SDIC got use or not

when reach the point where a local bank collapse to trigger SDIC, most likely government also already topple. so where to find the money for SDIC to compensate?

 

[reddevil0728]

actually havent happen before so no one really knows if SDIC got use or not

when reach the point where a local bank collapse to trigger SDIC, most likely government also already topple. so where to find the money for SDIC to compensate?

Depends if it’s widespread or isolated

 

[milkfish]

lets compare lah.

liquidity
ssb is very liquid. you can sell back to mas one a month. tbills must wait for 6 months. no one here is able to advise on the secondary market for tbills

tenure
6 mths vs 10 years. our normal perception is that longer tenure must give higher interest. my view is this: it really depends on the environment. under a decreasing rate environment, you may want to lock in to the high interest rate for a long period. under a rising interest rate, you want your money to come back quickly so that you can reinvest at a higher rate. what is current environment now?

yield
it seems the current yield of tbill is significantly higher than ssb.

maintenance
you have to do maintenance constantly for tbills, every 6 months, when the money comes back, you have to think of something for it. ssb no need do maintenance for the next 10 years

If you don't want to maintain, can also get 1 year tbill, 10 year SGS bond, etc. In a way tbills and SGS bonds probably have higher yields due to the mechanism in which SSB yields are formulated, during this time where we have inverted yield curve.