Singapore Savings Bond (SSB)

Government-issued retail bond redeemable any month with no penalty. Step-up coupons over 10 years. Backed by full faith of the Singapore government — credit risk is effectively zero.

What an SSB is

The Singapore Savings Bond is a long-dated government bond issued monthly by MAS specifically for retail investors. SSBs combine bank-deposit safety, redeemable anytime liquidity, and a step-up coupon structure that rewards longer holding.

Launched in 2015, SSBs are designed for the everyday saver who wants a higher yield than a savings account without taking equity-market risk.

Key features

Tenor: 10 years.

Step-up coupons: the interest rate rises in each successive year. Hold the full 10 years and your average yield matches the 10-year Singapore Government Bond yield at issue.

Redeemable any month with no penalty. Principal plus accrued interest paid back; no haircut.

Allotment: monthly issuance, application 1st – 4th business day of each month. Allocation is by quantity (not pricing) — first-come allocation up to a quota per applicant.

Holdings cap: S$200,000 per investor across all outstanding SSBs.

How to buy

Application via DBS/POSB, OCBC, or UOB internet or mobile banking. No commission or sales charges.

Minimum subscription: S$500, in multiples of S$500.

You need an individual CDP account linked to your bank — set up once.

SRS funds can also buy SSBs, useful for those wanting a low-risk SRS allocation.

When SSBs make sense

Emergency fund layer: redeemable any month means you can park 3 – 6 months of expenses here without losing rates if your money sits.

Savings ladder: stagger purchases across several SSB issues so a tranche matures or can be redeemed each year.

Alternative to T-bills: SSBs lock in a 10-year yield curve, while T-bills reset every 6 months. If rates are falling, SSBs lock in higher yields for longer.

Not ideal for: investors with a long horizon and risk tolerance — broad-market ETFs have higher expected returns over 10+ years.

Frequently asked questions

What is a Singapore Savings Bond?

A 10-year government-issued retail bond, redeemable any month with no penalty. Coupons step up each year so holding the full 10 years gives you an average yield matching the 10-year Singapore Government Bond yield at issue. Government-backed — effectively zero credit risk.

How much can I invest in SSBs?

Minimum S$500 per issue, in multiples of S$500. Maximum S$200,000 outstanding per investor across all SSBs.

Can I use CPF for SSBs?

No — only cash. CPF OA can be used for T-bills (with the 1-month interest gap on each side), but not for SSBs. SRS funds can be used for SSBs.

Should I buy SSBs or T-bills?

Use both. SSBs are perfect for emergency-fund overflow (redeem any month, no penalty). T-bills lock in higher short-term yields (currently ~3.5% – 4%) for cash you don't need for 6 – 12 months — and let you use CPF OA, which SSBs don't.

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