Govt bonds
Singapore Savings Bonds (SSB)
A government-issued savings bond you can buy from S$500 and redeem any month with no loss of principal.
What it is
In plain language.
Singapore Savings Bonds are a special type of Singapore Government Securities designed for individual savers. They are fully backed by the Singapore Government, which holds the highest credit standing, so the money you put in is treated as principal-safe.
Unlike a normal bond, an SSB has a step-up interest structure: the longer you hold it, the higher the average interest you earn, up to a 10-year maturity. You can hold it for the full term or exit early in any month without penalty.
How it works
In Singapore, in practice.
Each month MAS opens a new SSB issue with a fixed set of interest rates published in advance. You apply during the application window through DBS, OCBC, or UOB ATMs and internet banking, or via the OCBC Digital and DBS apps, using cash. SRS funds can also be used through your SRS operator bank.
You buy in multiples of S$500. There is an individual holding limit set by MAS (S$200,000 across all SSBs at the time of writing). Interest is paid every six months and is exempt from Singapore tax for individuals.
To exit, you submit a redemption request in any month and get your full principal back plus any accrued interest, with the cash paid out the following month. There is a small, fixed administrative transaction fee per application and redemption.
Run the numbers
See it in your own figures.
See what investing a fixed amount here every month could grow to, at an illustrative return.
What regular investing could grow to
Investing a fixed amount every month, compounding at an illustrative return. Projected, not guaranteed.
Where it sits
Its place in the instrument map.
A sound plan is built in layers, from a guaranteed base up to small, high-risk satellites. This is the role Singapore Savings Bonds (SSB) plays, and the layers around it.
Small, high-risk positions you could afford to lose entirely.
Direct stocks and REITs held for long-run growth.
Funds, ETFs, and bonds that spread risk across many holdings.
Government-backed income and the SRS tax wrapper.
Guaranteed and liquid: your CPF base and emergency cash sit here.
The trade-offs
What it does well, and what to watch.
Good for
- A flexible parking spot for emergency or medium-term savings that still earns government-backed interest
- Savers who want zero capital risk and the freedom to redeem in any month
- Laddering small amounts each month without locking up the money
Watch outs
- Returns are modest and roughly track government bond yields, so they may not beat inflation in every period
- Each individual is capped at the MAS holding limit across all SSBs combined
- Popular issues can be over-applied and balloted, so you may receive less than you applied for
- Early redemption returns principal and accrued interest only; you give up the higher rates earned by holding to the later years
In the market
What this looks like.
Real Singapore examples, shown to make the instrument concrete. These are illustrative, not endorsements.
How it connects
Instruments that work with this.
Treasury Bills (T-bills)
Short-term Singapore Government securities of 6 or 12 months, bought at a discount and redeemed at full face value.
Full breakdown Govt bondsSGS Bonds (Singapore Government Securities)
Longer-dated government bonds, from 2 up to 50 years, that pay a fixed coupon twice a year.
Full breakdown CPFCPF Ordinary Account (OA)
The CPF account you can use for housing, insurance, and approved investments, earning a guaranteed 2.5% floor.
Full breakdown CashHigh-yield / bonus-interest savings accounts
Everyday bank accounts that pay a higher headline rate when you meet monthly conditions like crediting salary, spending on a card, or paying bills.
Full breakdownSources
Where the facts come from.
- SSB are fully backed by the Singapore Government and can be redeemed in any month with no capital loss; individual holding limit of S$200,000.https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds
- Interest income from SSB is exempt from tax for individuals.https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/what-is-taxable-what-is-not/interest
See where Singapore Savings Bonds (SSB) fits your own plan.
This is educational, not advice. When you want a detailed look at how this fits your situation, a licensed adviser will map it to your income, CPF, and goals.