How to Buy Singapore Savings Bonds? How to Apply for Singapore Savings Bonds?

How to Buy Singapore Savings Bonds? 

Singapore savings bond can be brought by any individual who has the following things:

Qualification Requirement 

• Must attain the age of 18
• Non-residents are allowed. 
• An account with any of the three local banks, DBS/POSB, OCBC, and UOB, and 
• This account must be connected with CDP (Central Depository Account Securities.) or
• A Separate SRS (Supplementary Retirement Scheme) Account.

Buying procedure 

To buy Singapore savings bonds, look for the following things: 

• Look for its issuance date, and it will be issued every business month.
• It will open at 6 p.m. on the 1st business day of the month and close at 9 p.m. on the 4th business day.
• Its working hours will be 7 a.m. to 9 p.m. Monday to Saturday (except public holidays). 
• Individuals have to pay a 2 Singapore Dollar non-refundable transaction fee for each application.
• The minimum investment must be 500 Singapore dollars, and the maximum individual limit is 2,00,000 Singapore dollars.
• It can be brought through the following channels: DBS/POSB, OCBC, and UOB ATMs; mobile applications; and Internet banking. 

This way, one can buy Singapore savings bonds; these bonds cannot be bought at the bank counters but only via said platforms. 

What is a Singapore savings bond? 

Singapore Savings Bonds are Singapore Government Securities issued by the Singapore government, and they will be done every month. This bond has long-term savings with a 10-year schedule.

And interest rates are based on an average Singapore Government Securities yield from the previous month, and the interest rate will increase each year. And after 6 months, the interest rate amount will be deposited into your account.

There is a possibility that your application will be rejected if you do not have enough supporting documents, so look for the allotment date, which is the 3rd last business day of the month, and check your email.

If your application is rejected, excess money will be refunded to your account at the end of the second-last business day of the month. One of the standout features will be to exit savings bonds at any point in time without any major penalties.

This type of bond is tax-free and non-transferable, except in the event of the death of the bondholder. This bond cannot be traded in the securities market or pledged as collateral.

This bond exists purely to cultivate the habit of saving in the greying population of Singapore, apart from the EPF account. The minimum amount required for the bond is 500 (Singapore dollars), and the maximum individual limit will be 2,00,000 (Singapore dollars). 

How to Apply for Singapore Savings Bonds?

To apply for Singapore savings bonds, there are three methods: ATMs, mobile applications, and internet banking via three banks: DBS/POSB, OCBC, and UOB. 

ATMs

To apply via ATM

• Insert your debit or credit card into the machine. 
• Enter the PIN to access your account.
• Now select the language.
• Choose the investment option >> and select SGS Bonds. 
• Select the Singapore Savings Bonds option. 
• Verify the terms and conditions and select the bond application. 
• Select the interest money debiting account. 
• Choose your nationality and verify your CDP account. 
• Verify that you have filled all your account details and information you have given is correct 
• Click submit to submit the application and collect your card and receipt.

Choose the empty ATMs Don't go to the rush hour ATMs, as the details you are going to enter are highly sensitive and financially technical. so it may take 15–30 minutes of time even if you are well versed in bonds.

So take your time and fill it out, but also don't take too much time, as machines have response times fitted with them, so try to complete it within the allotted time. 

Mobile applications 

To apply via mobile applications

• Login to the Bank Mobile application with a user ID and login pin.
• Verify the account details. 
• Now Select Invest option on the App and Tap on the SGS Bonds 
• Choose the SSB (Singapore Savings Bonds) option
• Select the issue code and nationality.
• Enter the investment amount.
• Select how to get the interest rate and maturity price via a CDP account or SRS account. 
• Now verify the application details and submit them to confirm your application.  

Internet Banking

To apply via Internet banking 

• Login to an Internet banking account with a user ID & login pin.
• Verify the account details. 
• Now select the Invest option. 
• Now choose the SGS bonds. 
• Choose the SSB (Singapore Savings Bonds) option.
• Now select the issue code. 
• Choose your nationality.
• Enter the investment amount, starting at 500 Singapore dollars.
• Select how to get the interest rate and maturity price via a CDP account or SRS account. 
• Now verify the application details and submit them to confirm your application.

These are the ways one can apply to Singapore savings bonds.

How to Sell Singapore Savings Bonds? 

The selling of Singapore savings bonds is not allowed as selling means transfer of ownership, but in specific conditions, the selling of the bond is allowed when the bondholder dies, or a transfer between your own CDP or SRS account can be done, or you are changing the SRS operator. 

The Singapore savings bonds cannot be bought or sold on open markets, traded on the SGX, or pledged for collateral. If you die without a will, then, according to intestacy law, the ownership of the bond will be transferred. If you have a will, then your rightful beneficiaries will get ownership as per your will. 

Singapore Savings Bond Interest 

The Singapore Savings Bond interest rate will be based on the previous month's Singapore government securities yield, and the interest will increase each year in a step-up manner. Below is an example of the interest rate increase for a 10-year maturity period.

And interest is calculated on the compounded basis 

How to Redeem Singapore Savings Bonds?

To redeem Singapore savings bonds, individuals have two options. wait till the end of the full tenure period, i.e. when the bond matures. second, when you can withdraw prematurely.

To redeem at the full bond maturity

• This will happen automatically as long as you keep your account that is handling this active, either a CDP or SRS account, and there is no need for a 2 Singapore Dollar redemption fee for this type.

Redeeming Premature 

The individuals can redeem it early:

• Users need to submit the closing date via the same method as when they applied, which is via ATMs, mobile applications, and internet banking via three banks: DBS/POSB, OCBC, and UOB. For SRS accounts, the same can be done by SRS operators on the same request for redemption.
• Users can redeem more than one bond per month, and 2 Singapore dollars will be taken as a redemption fee for every redemption. 
• If you choose to redeem your investment before the scheduled interest payment date, you will receive a portion of the interest earned up to that point, known as accrued interest. This represents the interest you've earned but haven't yet received.
• If you redeem prematurely and during the scheduled interest payment time, you will receive the interest rate together. 

Benefits of the Singapore Savings Bond 

The benefits of the Singapore Savings Bond are many, and we will list some of them as follows:

• The minimum investment is as low as 500 Singapore dollars, which is very low when compared with other Singapore government securities, or T-bills.
• Redemption is allowed from an early on, making people use their savings from the interest earned.
• This is purely backed by the Singapore government, so market fluctuations will be controlled, and all people will earn interest savings and do not need to worry about market volatility.
• Its time limit is 10 years when compared with other instruments like Singapore Government Securities, which have a long duration, like Singapore Government Securities, which has a 50-year bond available, and short-term instruments like T Bill, which have a 1- to 6-month duration.
• This 10-year schedule allows for saving as well as spending in an equitable manner. 
• This is targeted at middle- or low-income groups, which is why it has individual limits of investment to give that income group reliable hope in savings via government instruments.