Update on Singapore Savings Bonds (SSB) and more thoughts

EDIT:
The full information is released here:

• http://www.mas.gov.sg/news-and-publications/media-releases/2015/singapore-savings-bonds-for-individual-investors.aspx
• http://www.straitstimes.com/news/business/banking/story/singapore-savings-bonds-8-things-you-should-know-20150512

CNA has released an article here about the SSB: http://www.channelnewsasia.com/news/singapore/mas-on-how-to-apply-for/1839400.html

In summary, here are the key points:

It seems that bonds will be issued every month (for the next 5 years at least), where the launch of the programme will be prompted one month before.

• Bonds are applied and redeemed in multiples of $500.
• The amount can be invested starts at $500 and is capped at $100,000.

You need a CDP account (the account for you to hold Singapore stocks) as well as an account with DBS/POSB/OCBC and UOB. The CDP account needs to be linked to the bank account for direct crediting.

Applications and redemption for bonds will be done via ATMs or iBanking (for DBS/POSB, c'mon OCBC let me do it for iBanking too). Transaction fees will be charged for applications and redemptions, but are non-refundable.

• Applications will open on the first business day of each month and close 4 business days before the end of the month. Redemptions seems to be the same.
• Successful applications/redemptions will be notified by mail.
• Looks like it's still similar to the bond auctioning, but now is bond balloting. If there's too much demand for the bonds, MAS will distribute the bonds in multiples of $500 until the full amount is reached or when all available bonds are consumed.

It is interesting to point out that the money raised from the SSB cannot be spent by the Government and will be invested.

The step-up interest rates is the same as my prior post:

Interest will be paid every 6 months, and we get to keep the money if the bond is redeemed before the full 10 years. (Money is paid to the bank account linked to the CDP account)

The interest payment schedule, the returns over different holding periods and when applications open for each Savings Bonds issue released by MAS later. MAS has also an FAQ on SSB on it's website here.


From what I am seeing, seems like a decent place to park your money (especially your excess reserves, and maybe your emergency funds if you die die must invest with it) if you max out your OCBC 360/UOB One and if you don't want to put it in the CIMB StarSaver Savings account.

Looks much convenient for me than bond laddering too. But if you are gonna lock it until old age, and not touch it. I think putting money in Index ETFs, buying annuities or even put money in the CPF SA account would yield better returns and beat inflation.

I guess it depends on your needs at this current point in time. What about you?