Monthly Update: Singapore Savings Bond (SSB) and Fixed Deposit Interest Rates

Key Highlights

• The latest Singapore Savings Bond (SSB) issue, SBJAN25, offers an average return of 2.73% to 3.07% per year, depending on the year from the issue date.
• The total amount applied for SBJAN25 was S$164.8 million, with S$153.4 million allotted.
• Fixed deposit interest rates, such as OCBC’s 7.XX% interest rate, are expected to decrease.

Main Discussion Points

• The SSB interest rates are based on the 10-year Singapore Government Securities (SGS) benchmark yields, which are currently higher than the previous two issues.
• The Federal Reserve’s interest rate cuts affect short-term interest rates, while the SSB is based on long-term rates.
• There are concerns that Trump’s policies may cause sustained inflation, leading to slower interest rate cuts by the Federal Reserve.

Important Details

• The SBJAN25 bond details:
  • Amount offered: S$600 million
  • Interest rates: 2.73% to 3.07% per year, depending on the year from the issue date
• The SBDEC24 bond details:
  • Amount offered: S$600 million
  • Interest rates: 2.66% to 3.01% per year, depending on the year from the issue date
• Applications for SBNOV24 or redemptions closed on November 1, 2024, with a total amount applied of S$99.6 million and S$92.2 million allotted.

Community Insights

• Forum members agree that the OCBC 7.XX% interest rate is likely to decrease.
• There are discussions about the low demand for the SSB, with some members pointing out that the offer size was S$600 million, and only S$92.2 million was allotted for SBNOV24.
• Members are sharing their experiences and feedback on the SSB application process and interest rates.

Things to Note

• The SSB interest rates are subject to change and are based on the 10-year SGS benchmark yields.
• There are warnings about the potential for interest rates to decrease, and members are advised to consider this when applying for the SSB.
• The Federal Reserve’s interest rate cuts may affect the SSB interest rates, although the impact is uncertain.

For more information on the Singapore Savings Bond, please visit the MAS website.

Source:
https://www.ilovessb.com/projection/SBJAN25

Source:
View original thread on HardwareZone Forum