Risk free investment vehicle offered by Singapore Government.

For reference :

https://www.mas.gov.sg/bonds-and-bills/auct...suance-calendar

https://www.ilovessb.com/


HWZ SSB thread:

https://forums.hardwarezone.com.sg/threads/...006693/page-501

HWZ T-bills thread:

https://forums.hardwarezone.com.sg/threads/...769601/page-321

This post has been edited by ikanbilis: Dec 8 2022, 03:36 PM

Not sure if I calculates it correctly....
For a 10yrs holding period.... @2.x%pa....

I would prefer to put in kwsp @abt 5.5%pa...
That is a plus of abt 3%pa.....
I think SGD cannot appreciates at a 3%pa over MYR.
What do you think?

Epf is retirement fund that most people cannot touch until 55 years old. SSB is more like FD which can withdraw every month. Singapore bank pays very little interests in comparison.

Epf may give a better rate but i don't put all my money in one place. SSB is part of my diversification portfolio on top of my epf and asnb savings.

By the way SSB has a limit of SGD200k per person.

This post has been edited by ikanbilis: Jun 1 2022, 07:53 PM

20 years ago many think ringgit wont be breaching 3.xx to a Sing dollar, 4.xx to a US dollar

What does that tell? Is savings with KWSP really help the people to have a better retirement years???

I agree with u
Ringgit is a depreciating asset

3% pa variance....
@10 yrs = 30%
Now is 3.1 MYR to sgd
30% = 4.0 MYR to sgd in 10 yrs??
🤔🤔

Is savings with KWSP really help the people to have a better retirement years???
🤔🤔Unless you want to retired in sg.
Being abt to hv abt 5.5-6%pa compounded... Much better than those that aimed at riskier asset or capital protected vehicle?? 🤔🤔

This post has been edited by yklooi: Jun 1 2022, 08:40 PM

They are different investment instruments. SSB is a bond backed by Spore govt rate of default almost zero guaranteed capital. Also when look at percentage also factor in the currency. Can have high rate but inflation MYR become small. I share before Msia bank FD I put after mature come out the interest no power as things are so expensive.

For KWSP, Spore also got equivalent CPF OA at 2.5 and SA at 4 and a whole lot of CPF life annuity to get monthly payment until you die.

As for 1 SGD to 4 MYR in 10 years don't say cannot happen. During my times 1 SGD to 2 MYR I thought that is crazy cannot go higher already and now year 2022 it breach 3 MYR !

This post has been edited by sgh: Jun 1 2022, 11:29 PM

Very hot indeed can also try bank FD for 12 months all going up. CIMB SG FD now is 1.6,1.68% not bad

I think I am beginning to see what you tried to imply.
Even if MYR can goes up to 4 to a sgd in 10 yrs,... Not much untung....
Even if thinking this sdg bond can be easily withdrawn unlike kwsp,... Then no untung if want to diversify in the 1st place.
Those nearer to age 50, if put in kwsp,... At age 50 can do withdrawal... Depends on the amount placed in (used as a discussion comparison above)... The amount withdrawn can be 30% or 100% of the amount placed in.

Is that what you tried to imply?

Is there any USD denominated bond that are on par (risk rating n minimum amount) as this sdg bond that which we can access?
If for diversification and to hv better forex appreciation in 10 yrs.... USD better or sgd better?

This post has been edited by T231H: Jun 2 2022, 12:57 AM

20 years ago SGD was 2.20 to MYR. Now it's 3.20

CAGR of 1.89%.

i am considering to buy some from FSM SG.

Still waiting.

https://secure.fundsupermart.com/fsm/article/view/

This post has been edited by Jitty: Jun 2 2022, 11:03 AM

Good discussions in the above, bros,... For myself,...

1) I put into SSB when I see interest rates are rising, that's when the SSB interest rates will be higher.

2) SSB is a parking facility till interest rates start to turn, and I will liquidate my SSB, to buy REITs, tech stocks and whatever else.

3) Emm,... when I reached my withdrawal age, I MIGHT NOT withdraw everything from EPF to be pumped into SSB. But,.. let's imagine I am able to withdraw my EPF this year, I would have withdrawn half and converted into the SGD at the beginning of this year after I saw MAS did a tightening in end-2021.

4) And finally,... I would buy into Astrea bonds denominated in the SGD and in the USD tho' the risk rating is higher. I would also buy into Astrea bonds when interest rates are rising, like today.

For your infos,... Astrea 7 has been launched and was recently floated in the exchange last week. They are available in the exchange, under the following codes :-

a) V7AB : 4.125% pa denominated in the SGD.
b) V7BB : 6.00% pa, denominated in the USD.

But, be careful,... when interest rates rise further, the bond price (in the secondary mkt) may fall. Then you'll have to hold till maturity if you wish to get back your par values. This is a major risk. Pls read the documents if need to know of other risks.

Yeah KWSP is way better if u have exceeded 1 mil in it.... after 1 mil u can withdraw any amount online anytime...

And also those above 50 yrs.... Can take out 1/3...depending on the amount inside,... It could also mean 100% of what had been in that SSB too.
The amount that can be withdrawn for those that exceeded 1 mil may not be enough equivalent to the amount in SSB, for emergency cash out use.

This post has been edited by MUM: Jun 3 2022, 03:09 PM

Msia EPF system differs from Spore CPF. This explain why for Msian it is easier to lay hands on those funds unlike us. Furthermore 50 years already can touch whereas for us it is at age 55 make sure fulfill X dollars (this year is 192,000) go into some Retirement Account to earn interest to be put into CPF Life annuity plan at age 65 onwards to draw a monthly allowance from that plan. After deduct the 192,000 any remaining then can take out. Then the monthly allowance start at age 65 onwards. What if you got short life?

So Spore expect their citizen live super long life and hence come out with this CPF Life annuity scheme which means to lay hands on those funds you better live long life. I dunno if this is good but for me come on I prefer Msia EPF to lay hands early at age 50 instead. Work like dog whole life must wait until age 65 and furthermore those is monthly allowance not lump sum withdrawal also. Spore smart let the same batch of old ppl feed each other. Those short life rugi and subsidize those live long life in that annuity plan.

curios why short life will rugi? your next of kin cannot inherit the remaining balance in CPF Life annuity plan ?

CPF Life annuity plan actually bear interest from what I was told. So when you pass away, your nominees get back your "capital" put in. The interest earned is in the big pool to fund other surviving member monthly payout. This lead me to think the monthly payout we get is our capital+interest although it is not stated explicitly in the website

Don't under-estimate that interest portion, 192K is only for this year and it will increase every year. Imagine this 192K put into the CPF Life annuity with compounding interest that amount is not small. And since it is a big common pool of all ppl of same batch that is a lot of monies! This scheme is very good for government as they just administer the scheme they no need to cough out govt monies to feed this group of old ppl. Basically each one is supporting each other. But there can be a freak (small most likely) scenario is same batch of ppl majority live super long over age 90 then the common pool of monies may have problem continue to pay monthly perhaps even reducing the payout or maybe govt need pump in monies.

Above is what I read in the other Spore forum so please don't treat it as the truth. But the points flagged make sense. A big pool of monies cannot be sit there just to distribute monthly payout it has to be invested to grow the pool logical?

Not sure need to open a new topic but since this is about Singapore Savings Bond, a close relative to this is called Spore T-bill. How it works is below

1. Every 2 weeks Spore govt issue a new/reopen T-bill of 6 months maturity
2. Retail investors can participate by applying. During apply there is competitive and non-competitive bids. Why this work is becuz the 'interest' (they call cutoff yield) of the T-bill is not known in advance. It will only be known once the auction has taken place. The auction involve some primary dealer banks bidding.
3. Once the auction results is out, up to 40% of the T-bill size is first given to ppl on non-competitive bids. If over then pro-rated. The remaining 60% will be alloted to those who place competitive bids. The upcoming 09 Jun 2022 size is 4.1 billion of which 1.64 billion will be for non-competitive bids to get FIRST before the rest is alloted to the competitive bids for those with lowest to the cutoff yield onwards. Compared to SSB latest of only 350 million this T-bill size is so much larger so chance of not getting is lower?

E.g Auction result come out is 1%. Minimum invest is 1000. So you get $10/2 = $5 since it is for 6months. You then hold the T-bill in your CDP until 6 months later mature return you back your $1000. The $5 is your discount for the T-bill but I think of it as upfront interest like Maybank FD. Put get interest already a few days later

Pro and con
1. Cannot redeem each month like SSB. You can sell in secondary market but may lose capital
2. No need pay $2 for apply like SSB. I test using POSB,DBS mobile app
3. You get your "interest" upon know auction results few days later. That is the discount you get actually
4. No 200k SSB limit but per auction limit at 1 million

The last 26 May 2022 auction result is 1.80% for 6 months.

Yup this is the closest relative to SSB.

But i still prefer the flexibility of the SSB. Meaning i can keep the SSB for few years with an acceptable interest rate, or i can redeem it next month when an investment opportunity arise.

This post has been edited by ikanbilis: Jun 6 2022, 05:17 PM

Problem with SSB is over subscribed you cannot get full allotment. For T-bill the amount size are much bigger so chance to get full allotment higher but it is only 6 months so yes not really for long term which SSB provide and the flexibility to withdraw every month if needed. Just sharing the alternatives.