SEPTEMBER 2018 SINGAPORE SAVINGS BONDS: SOME GOOD NEWS!

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Dear readers, the September 2018 Singapore Savings Bond is now open for application (date of application from 1 Aug 2018 to 28 Aug 2018). The interest rates of the September 2018 Saving Bonds is as summarized in the graph above. Before we go into reviewing the interest rates for this latest issue, it was stated on the Singapore Savings Bond website that the monthly issuance size of the Singapore Savings Bond programme has been increased to $300 million from this month. Before this increase of issuance size, the monthly issuance size had been $250 million, thus it would be good news for investors since the allotment per investor for the Sep 18 Singapore Savings Bonds would likely be higher compared to previous issues.
Now for my review of the Sep 2018 Singapore Savings Bonds (“SSB”).

For the first year, the Sep 2018 SSB pays a 1.75% interest rate versus that of 1.78% for Jul 2018 SSB.

And after that, the average yearly return per year from Year 2 to Year 10 (the end of the holding period) is actually lower than the Jul 2018 tranche. The average yearly return at the 10th year of Sep 2018 SSB is 2.44% as compared to 2.63% for Jul 2018 SSB.

I have chosen Jul 2018 SSB as a comparison since this Jul 2018 SSB seems to offer the one of the highest SSB interest rates so far (Aug 2018 tranche offers a yearly return of 2.57% over the 10 years’ holding period, for more details please visit this link)
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