In this article, we’re sharing how to buy a Singapore Savings Bond (SSB).
This article is part of our free series on banking in Singapore, including how to open a Singapore non-resident bank account, which you can access by clicking here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How to Buy Singapore Savings Bond?
- Who Can Buy Singapore Savings Bonds?
- What Are the Benefits of Buying Singapore Savings Bonds?
- Factors to Consider Before Buying Savings Bonds in Singapore?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
How to Buy a Singapore Savings Bond?
To buy a Singapore Savings Bond, you will need a Singapore bank account, online banking access, and an individual Central Depository Account (CDP) with direct crediting enabled. You can then apply to purchase Singapore Savings Bonds through your choice of major Singapore banks.
Depending on the bank you have accounts with, you can either use cash, mobile banking, internet banking, mobile banking, or an ATM, to complete your purchase.
DBS, OCBC, and UOB all support cash purchases. If you are looking to buy a Singapore Savings Bond via online banking then UOB or OCBC’s mobile application may be better options to consider.
The minimum purchase amount for a Singapore Savings Bond is SGD 500.00. Likewise, further purchases of Singapore Savings Bonds must be made in minimum increments of SGD 500.00.
If you are a foreign non-resident of Singapore, the process is the same. Also, it’s worth noting that foreign non-residents are eligible to purchase Singapore Savings Bonds directly. That said, you will need a Singapore-domiciled bank account with one of the banks referenced above.
We’ll take a closer look at the steps to buy a Singapore Savings Bond, the available interest rates, as well as other considerations for foreigners before accessing the Singapore bonds market below.
But first, let’s take a closer look at who can (and can’t) buy a Singapore Savings Bond.
Who Can Buy Singapore Savings Bonds?
As mentioned, both local residents of Singapore and foreign non-residents of Singapore can buy Singapore Savings Bonds. However, there are requirements that individuals need to meet before they will be able to buy. The most important requirement (and biggest hurdle to overcome), is the requirement of a Singapore bank account.
Unfortunately, most foreign non-residents will struggle to open a Singapore bank account. This is especially true if you are a citizen and/or resident of the United States, Canada, most of Europe, and other developed Western countries. That said, depending on your relationship balance, it may still be possible to open accounts.
Of course, there are other citizenship and residency combinations that can successfully open Singapore bank accounts, including remotely. Though the countries that these applicants come from tend to be in close proximity to Singapore.
If you would like to learn more about your banking options in Singapore, feel free to contact us directly to discuss whether you are eligible.
What Are the Benefits of Buying Singapore Savings Bonds?
Singapore Savings Bonds are a stable and secure investment option backed by the Singapore Government. In addition to being secure, they also offer flexible investing terms and allow bondholders to withdraw their investment at any point in time, instead of forcing a specific investment period (up to 10 years).
That said, like any investment, there are important factors to consider before buying savings bonds in Singapore, which we’ll cover below.
Factors to Consider Before Buying Savings Bonds in Singapore?
The important factors to consider before buying Singapore Savings Bonds include whether you meet the requirements and the interest rates being offered on Singapore Savings Bond compared to alternative options available to you.
Requirements
As mentioned, in order to qualify to buy a Singapore Savings Bond you need to have a bank account in Singapore, a Central Depository Account (CDP), and be willing to make a SGD 500.00 investment.
While the investment amount is accessible for most people, opening a Singapore bank account can be challenging for foreign non-resident investors. With this in mind, if you are a foreigner looking to open accounts, it’s important to consider whether this is a realistic option for you prior to moving forward.
Interest Rates
The interest rates offered on Singapore Savings Bonds increase over time through a step-up feature. This is designed to encourage longer-term investing, which also results in higher rates of compounding in the later years of the investment.
Recent Singapore Savings Bond issuances start with an average interest rate of 2.76%, which is low when compared to other international markets. However, it’s important to point out that Singapore is one of the most stable banking jurisdictions in the world.
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Frequently Asked Questions
Below are two of the most common questions that we receive from people looking how to buy a Singapore savings bond. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Do I Buy Bonds in Singapore?
To buy Singapore Savings Bonds you will need a bank account with one of the major Singapore banks. Then you will need a Central Depository Account (CDP). After you have both accounts, you can then apply to purchase Singapore Savings Bonds (SSB) in SGD 500.00 increments through online or mobile banking or in person with cash.
Can Foreigners Buy Singapore Government Bonds?
Yes, foreigners can buy Singapore government bonds. This includes the Singapore Savings Bonds (SSB) and Singapore Government Securities (SGS). That said, in order to qualify, foreigners will need to have both a Singapore bank account and a Central Depository Account, which may be difficult to obtain depending on your citizenship and residency.
Do You Want Help Opening Bank Accounts?
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