SBMAY24 GX24050X is 3.06%

The effective interest rate for May 2024 Singapore Savings Bonds (SSB) (SBMAY24 GX24050X) is 3.06% if you held it for 10 years. The interest rate had increased slightly by 0.02% as compared to last month interest rate of 3.04% (SBAPR24 GX24040Z).

Singapore Savings Bonds (SSB) are issued and fully backed by the Singapore Government. 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) over Treasury Bills (T-Bills)?

The effective interest rate for Singapore Savings Bonds may not be as attractive like T-Bills. However, Singapore Savings Bonds is still attractive in some areas.

First, the minimum amount to invest is low. The minimum amount which you can purchase the Singapore Savings Bond is low at S$500. This is unlike buying Singapore Treasury Bills (T-Bills) where the minimum is at least S$1,000.

Second, there is no lock in period and thus you can sell it anytime. If you decide to hold and sell this issue of Singapore Savings Bond after 1 year, the effective interest rate is 2.74%. Thus, one of the benefits of buying Singapore Savings Bonds is the liquidity.

Third, Singapore Savings Bonds is a good investment to complement your other savings and investments due to the fact that it is near to zero risks. It can also be treated as an emergency funds.

Year from issue date Interest % Average return per year %*
1 2.99 2.99
2 2.99 2.99
3 2.99 2.99
4 2.99 2.99
5 2.99 2.99
6 2.99 2.99
7 3.03 3.00
8 3.20 3.02
9 3.27 3.04
10 3.27 3.06

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

Stocks Café Can Also Track Singapore Savings Bonds

StocksCafe Tracking of SSB

My favourite stock management software, Stocks Café allows me to track my Singapore Savings Bonds purchases.

Stocks Café allows you to create portfolios. You can use portfolio to differentiate your investments. For example, I created three portfolios in Stocks Café, namely Stocks, Singapore Savings Bonds and Treasury Bills. This allow me to categorize how much I allocate for each investment.

Singapore Treasury Bills (T-Bills) versus Singapore Savings Bonds (SBMAY24 GX24050X)

The cut off yield for BS24106W 6-Month T-bill is 3.80% p.a. This is definitely higher than 3.06% p.a. that SBMAY24 GX24050X has to offer.

Like I shared above, if you afford the minimal amount of S$1000, go for T-bills. If you can only fork out S$500, then investing in Singapore Savings Bonds is still better than not investing at all.

CIMB Fixed Deposit Promotion Beats SBMAY24 GX24050X

The fixed deposit interest rates for CIMB Fixed Deposit has fallen quite a lot as compared to last month. Nevertheless, the interest rate offered by CIMB is still higher than what Singapore Saving Bond has to offer.

S$10,000 AND ABOVE
S$10,000 AND ABOVE
3 months 3.25 3.30
6 months 3.25 3.30
9 months 3.05 3.10
12 months 2.95 3.00

Which Investment To Choose?

The interest rate for Singapore Savings Bonds (SSB) had started to creep up slowly. If you are looking for short term deposits, go for T-Bills instead of Singapore Savings Bonds.

If you are looking for a longer horizon, this is where Singapore Savings Bonds (SSB) become attractive at 3.06% p.a. If you look at the 12-month fixed deposit promotion that CIMB Bank is offering, the bank is offering less than what this month’s issue of Singapore Savings Bonds is offering.

If I am looking long term, I will opt for this month’s issue of Singapore Savings Bonds.

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