Singapore Savings Bond 10-year average return hits record high 3% for August issue

THE 10-year average return for the August issue of the Singapore Savings Bond (SSB) has climbed to 3 per cent – the highest level recorded since its inception in October 2015.

This is 22 basis points (bps) higher than the previous 10-year average return peak of 2.78 per cent, which was recorded in November 2015.

The average return over 10 years for the August issue is also 29 bps higher than the 2.71 per cent for the July 2022 issue.

In the August issue, the first-year interest rate for the SSB is at 2 per cent, and its 10-year interest rate was offered at 3.29 per cent.

The rising SSB rates come amid a tightening economic environment, with expectations of further rate hikes from the US Federal Reserve.

The maximum amount offered in the August issue of SSBs is capped at S$700 million.

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The first interest payment will be made on Feb 1, 2023, with subsequent payouts every 6 months on Aug 1 and Feb 1 until the maturity date on Aug 1, 2032.

Applications for the August issue of the SSB close at 9 pm on Jul 26.