Singapore Savings Bond’s November tranche offers record high interest rates

SINGAPORE Savings Bonds (SSBs) have hit record highs, with the latest tranche for November that opened on Monday (Oct 3) offering a first-year interest rate of 3.08 per cent and a 10-year average rate of 3.21 per cent - both all-time highs.

Both rates were much lower last month at 2.6 per cent for the first-year and 2.75 per cent on average over 10 years, even though the yields on the short-dated bonds were then higher.

Of the S$900 million allotted against a total application amount of S$1.1 billion for the October issue, applicants who applied for S$42,000 or lower were fully allotted (subject to the individual allotment limits) while those who applied for S$42,500 or higher were allotted either S$42,000 or S$42,500. Approximately 72.3 per cent of these applicants were selected at random and allotted the additional S$500.