Hang on to your older tranche of Singapore Savings Bonds
The only scenario where a holder of the old March 2017 SSB can consider making the switch to the newer February 2018 SSB is if the holder has a very short one-year investment time horizon
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THE details of the next month's Singapore Savings Bonds (SSBs) were recently announced. In the announcement, the yield - based on the end-December Singapore Government Bonds (SGS) 10-year-yield-curve, and the coupon rate - the interest paid in the Nth year that the bond has been held, are shown in the table below.
What may have piqued investors' interest is that the coupon offered in the first year has risen to 1.55 per cent, the highest first year coupon since SSBs were introduced in October 2015.
As a quick recap, SSBs are a savings instrument available to retail investors. The returns mirror the yield on the SGS prevailing at the time of subscription, and depends on the period that the investor holds the bond. It pays an interest rate (called the coupon) corresponding to the year that the bond has been held.
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