First Singapore Savings Bonds to be issued on Oct 1
SINGAPORE — Individual investors can apply for the first Singapore Savings Bonds (SSB) — a new government bond that allows them to enjoy a better return on their savings — from Sept 1.
The bonds will be issued on Oct 1, said the Monetary Authority of Singapore (MAS) yesterday, adding that there was no need to rush for them, since a new savings bond will be issued every month for at least five years.
The Government plans to issue S$2 billion to S$4 billion of savings bonds this year. It is launching the SSB programme to help retail investors secure higher returns than those offered by banks, while giving them the option to invest smaller amounts as well as the flexibility to redeem at any time without incurring a penalty.
In its media release, the MAS said the savings bonds offer “individual investors a safe, long-term and flexible product to meet their savings and investment needs”.
On Sept 1, the central bank will publish a public notice to provide information on the first bond issue, including the amount on offer and the interest payout schedule from the first to the 10th year. The notice will be published after 4.30pm on the savings bonds website (http://www.sgs.gov.sg/savingsbonds).
To apply for the bonds, individuals must have an account with participating banks, namely DBS/POSB, OCBC or UOB, and an individual CDP Securities account with direct crediting service.
