SBJUN24 GX24060A is 3.33%

Singapore Savings Bonds SBJUN24 GX24060A

The effective interest rate for Singapore Savings Bonds (SSB) June 2024 (SBJUN24 GX24060A) is 3.33% if you held it for 10 years. As you can see from the chart above, the interest rate had leaped by 0.27% as compared to last month interest rate of 3.06% (SBMAY24 GX24050X).

Based on the 12 months trend, the highest effective interest rate for Singapore Savings Bonds is 3.4% (SBDEC23). The effective interest rate for this month’s issue of the bond is getting nearer to the highest interest ever offered!

What are Singapore Savings Bonds? Singapore Savings Bonds (SSB) are issued and fully backed by the Singapore Government. The bonds are among the few with AAA credit rating which means they are by default low risk. With the Singapore Government backing, this means there is virtually no risk of capital loss. The bonds take their interest rates from the average yields of Singapore government bonds from the month before. If you would like to know how the effective interest rate for this month’s issue of Singapore Savings Bonds is computed, you can refer to my previous post on Predict Singapore Savings Bonds Interest Rate.

When to Choose Singapore Savings Bonds (SSB)?

The returns for Singapore Savings Bonds may not be as attractive as compared to other investments such as Fixed Deposits or Treasury Bills. However, Singapore Savings Bonds is attractive in its own areas.

The minimum amount to invest in Singapore Savings Bonds is low at S$500. This is unlike other investments such as Singapore Treasury Bills (T-Bills) where the minimum is at least S$1,000. For Fixed Deposits, the minimum is usually set at S$10,000.

The high liquidity is one of the features that I like about Singapore Savings Bonds. There is no lock in period which means you can sell it anytime.

Since Singapore Savings Bonds is near to zero risks, it can also be treated as an emergency funds to complement your savings.

Year from issue date Interest % Average return per year %*
1 3.26 3.26
2 3.26 3.26
3 3.26 3.26
4 3.26 3.26
5 3.26 3.26
6 3.26 3.26
7 3.33 3.27
8 3.46 3.29
9 3.54 3.31
10 3.54 3.33

*At the end of each year, on a compounded basis.

How I Track my Singapore Savings Bonds

StocksCafe Tracking of SSB

Stocks Café allows me to track my Singapore Savings Bonds purchases. If you like to know more about Stocks Cafe, please read up my previous review of Stocks Cafe.

Singapore Savings Bonds Interest Calculator

Are you wondering how much interest you would earn if you held Singapore Savings Bonds for 10 years? To make it easy for you, Monetary Authority of Singapore (MAS) had come up with a Savings Bonds interest calculator.

Let us use an investment of S$5000 as an example. If you purchase SBJUN24 and held it for 10 years, you will receive a total earning of S$1,670. Based on the chart generated from the Savings Bonds Interest Calculator, you will receive an estimate of S$160 per year until maturity in June 2034 depending on the interest rate for that year.

SBJUN24 GX24060A Interests Earned To Maturity

My Thoughts on SBJUN24 GX24060A (Singapore Savings Bond June 2024)

In consideration of long-term savings and the attractive interest rate, I will most likely purchase this month’s issue of Singapore Savings Bonds.

If you look at CIMB’s latest fixed deposit interest rates, you will understand why I chose SBJUN24 GX24060A over Fixed Deposits.

S$10,000 AND ABOVE
S$10,000 AND ABOVE
3 months 3.25 3.30
6 months 3.25 3.25
9 months 3.20 3.25
12 months 2.95 3.00

Please share your thoughts. Will you be buying this month’s issue of Singapore Savings Bonds?

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