Singapore Saving Bond September Issue

                
The last day to apply for September's Singapore Savings Bond is tomorrow. If you have cash held in Singlife, Dash, local banks or other yield instruments that is giving less than 2.63% for the first year or 2.8% pa for 10 years, do consider switching to SSB. 

This risk free bond at first year rate of 2.63% beats many of the products that our local banks and fintech companies are currently giving. Besides the $2 fee, its impossible to lose money because you can redeem it on any month and you will get back the principal plus the pro rated interest. Do take note of these important dates. 

You can redeem any day of the month before the closing date because the interest accretion only ends on the day of redemption so there will be no loss of interest even if you apply for early redemption.

For applying though, its best to apply on the closing day because the money that you hold should be already parked in an interest yielding account, so the longer you drag to apply the more interest you will get.

Judging from the issuance size this time, the chance of being allotted more than 12k sgd maybe higher. But I am uncertain as the demand has been increasing exponentially in the last three months.

Beginning of the year, the amount issued was only 76mil. It has been undersubscribed for the first half of the year. The current issued amount offered is almost 10x more compared to January and yet it will likely be many times oversubscribed if we base it on the application trend these last three months. 

Do note that this September issuance has a total offered size of 900mil, 200mil more than last months issuance. This current issuance has the highest first year interest of 2.63% compared to last month's 2%.

The demand for SSB has increased dramatically in the last three months due to the higher annualized interest. Everyone can only apply for a maximum of 200k sgd worth of SSB. Every months allotment may likely be 10-12k. So if you are interested in capping the 200k, you can apply for it every month and create a bond ladder so that once you hit the cap, you get the interest from the SSB on a monthly basis. Do note that every SSB pays out interest semi annually. 

I will be applying around 10k for tomorrow, see how it goes.