Time for Singapore Savings Bonds to reach a larger audience

WITH a first-year interest rate of 2 per cent and a 10-year average rate of 3 per cent - a record high - the August tranche of Singapore Savings Bonds (SSBs) will almost certainly be oversubscribed. It is a shame, however, that more Singaporeans aren’t applying for the issues.

The July tranche, with a slightly lower rate of 1.69 per cent for the first year and 2.71 per cent on average over 10 years, received applications to the value of S$1.3 billion for an issue of S$600 million.

Those who applied for S$18,000 or less would have received the amount in full as long as they have not exceeded the S$200,000 limit across tranches. Among those who applied for more, 17 per cent were allotted an additional S$500 on a random basis.