It is a Principal Guaranteed risk free, affordable and low cost investment option for retail investors. It is fully backed by government. It is intended to be a safe, long term instrument for new and risk adverse investor. Recommended minimum investment horizon would be 2-3 years.
This bond yield is linked to the Singapore Government Security (SGS). This traded yield fluctuates daily based on changes in market condition. SGS closing yield is published by MAS at end of each day.
The SSB rate steps up over time, covers 10- year period. The interest rate is generally higher than fixed deposits. The10-years average yield is about 2%.
Minimum investment is $500. You can invest up to $50,000 in a single SSB issue and hold up to $100,000 at a time.
If demand exceeds supply, an applicant will be allocated $500 of bonds with amount increasing in multiple of $500 until he or she either receives full amount applied for or until all available bonds have been allocated.
You can redeem on a monthly basis and in multiples of $500. No penalty for selling SSB early. Each buy and redeem, there is a $2 administration fee.
What other similar Instruments in the market that you can consider?
- Conventional Singapore Government Security. This requires minimum $1,000.
- Corporation Bond. This usually requires $250,000. It can be lesser than $250,000 from the open market distributed by authorized brokers.
- Dividend paying Unit Trust Funds. Yield can be ranging from 3-7% p.a.
- Dividend paying Equity Stock
Reach us now to find out more about each of the above instruments and understand which one is suitable for you: https://fortegroup.com.sg
Please note:
The information contained in this article is for general guidance on matters of interest only. While we made every attempt to ensure that the information contained herein has been obtained from reliable sources, we are not responsible for any errors or omissions, or for the results obtained from the use of this information. Neither the information presented nor any opnion expressed constitues a solication for the purchase or sale of any financial products. As such, before taking any action you should seek advice from an independent professional advisor.
