2.63% return for first issue of S'pore Savings Bonds
THE Monetary Authority of Singapore (MAS) rolled out the first issue of Singapore Savings Bonds (SSBs) yesterday, promising a 2.63 per cent average annual return if they are held for 10 years.
The interest rate starts from 0.96 per cent for the first year, and steps up gradually in line with the holding period, The Business Times reported.
At the end of 10 years, the annualised return will be 2.63 per cent.
A total of $1.2 billion of SSBs will be issued for this first tranche, which will be open for application between 6pm yesterday and 9pm on Sept 25, reported The Straits Times.
Interested investors must have an Individual Central Depository securities account complete with Direct Crediting Service.
They can then apply through the ATMs of DBS Bank, POSB, OCBC Bank and United Overseas Bank, or through the Internet banking services of DBS and POSB.
The SSBs can be applied in multiples of $500, up to a maximum of $50,000 for a single issue.
Returns will be paid out twice yearly, on April 1 and Oct 1, for as long as the bonds are held.
Allocations are made in a way that distributes the available bonds as evenly as possible to maximise the number of successful applicants.
MAS will announce allotment results on Sept 28.
Unlike the regular bonds, the SSBs still offer accrued returns to investors who wish to redeem the bonds ahead of the full 10-year tenor.
The investment is also capital guaranteed, and is backed by the Singapore Government.
The MAS is committed to issue SSBs every month for at least the next five years.
THE STRAITS TIMES,
THE BUSINESS TIMES