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Singapore Savings Bond (SSB)

Singapore Savings Bond (SSB)

The government-guaranteed savings instrument with step-up interest rates and full capital safety — redeem any month with no penalty.

What is a Singapore Savings Bond?

A Singapore Savings Bond (SSB) is a special Singapore Government Securities (SGS) bond issued monthly by MAS. It offers step-up interest rates increasing each year you hold, full capital safety backed by the Singapore government, and flexible redemption any month with no penalty. April 2026 10-year average return: 1.99% p.a.

Min Investment
S$500
Max per person
S$200,000
10-yr Avg (Apr 2026)
1.99% p.a.
Issued by
MAS / Singapore Govt

What Is a Singapore Savings Bond?

The Singapore Savings Bond is a retail savings product introduced by the Singapore government in October 2015 for individual investors. Unlike regular bonds that lock your money until maturity, SSBs are uniquely flexible: redeem in any given month and receive your full principal back plus accrued interest, with no penalty. This makes it one of the few truly no-risk, no-penalty savings instruments available to Singapore residents.

SSBs are issued monthly by MAS on behalf of the Singapore government — which holds a AAA credit rating — meaning zero default risk. Each monthly issue has a unique issue code (April 2026: GX26040E) and its own interest rate schedule pegged to prevailing SGS market yields. Rates are announced approximately two weeks before applications open.

The product is designed to be accessible: minimum S$500, applications via ATM or internet banking, and no brokerage fees. It targets retail investors — Singapore Citizens and Permanent Residents — as part of the government’s financial inclusion strategy.

How SSB Step-Up Interest Works

The defining feature is its step-up interest structure. Unlike a fixed deposit paying the same rate every year, SSB interest rates increase annually. Year 1 offers a lower rate reflecting short-term SGS yields; Year 10 offers the highest rate aligned with 10-year SGS benchmark yields.

This rewards patience. Hold your SSB the full 10 years and receive the long-term average return stated when you applied. Redeem early and you only collect the rates for the years held — but get your full principal back, no penalty. Interest is paid every six months (June and December) directly to your bank account, making SSBs useful as a passive income stream alongside S-REITs or dividend stocks.

Current SSB Rates (April 2026)

The April 2026 issue (GX26040E) step-up rates:

Year Interest Rate (% p.a.) Cumulative Avg
Year 1 1.36% 1.36%
Year 3 1.79% 1.59%
Year 5 2.08% 1.83%
Year 10 2.82% 1.99%

Data: MAS SSB GX26040E. 10-year average of 1.99% p.a. applies if held to full maturity.

How to Apply for SSB in Singapore

You need a CDP (Central Depository) account linked to DBS/POSB, OCBC, or UOB. Four application channels: (1) ATM — DBS/POSB, OCBC, UOB ATMs under “Investment → Singapore Government Securities”; (2) Internet Banking — DBS iBanking, OCBC Online Banking, UOB Personal Internet Banking; (3) MAS SGS Portal — masgs.mas.gov.sg via SingPass; (4) Mobile Banking Apps — DBS, OCBC, UOB apps under investment sections.

Applications open the first business day of the month and close around the 25th. Minimum S$500 in multiples of S$500, maximum S$200,000 across all SSB issues. High-demand months may result in scaling back — you might apply for S$20,000 and receive less if oversubscribed.

SSB vs T-Bills vs Fixed Deposits vs CPF OA

Feature SSB T-Bill (6M) Fixed Deposit CPF OA
Typical Yield 1.99% (10yr avg) ~2.8–3.2% ~2.0–2.5% 2.50%
Capital Safety ✅ Govt ✅ Govt SDIC $75K ✅ Govt
Liquidity Monthly redemption At maturity only Penalty if early Restricted

SSBs work best as a medium-term savings buffer — better liquidity than fixed deposits, less admin than rolling T-bills. They complement rather than replace higher-yield investments like S-REITs.

Tax Treatment and Eligibility

Interest earned on SSBs is tax-exempt for individual investors — you do not declare SSB interest in your income tax return. This is significant for higher-income earners who would otherwise pay income tax on fixed deposit or corporate bond interest.

Eligibility: individuals aged 18+, Singapore Citizens, PRs, or Employment/S Pass holders with a local bank account. Not available to corporate entities, trusts, or joint applicants. Maximum S$200,000 per person across all SSB issues — this cap ensures SSBs remain a retail savings tool.

SSB as a Retirement Planning Tool

For retirement planning, SSBs serve a specific role: capital preservation with modest income. They work best as the “safe” allocation in a broader retirement portfolio that also includes S-REITs for yield, dividend stocks for growth, and CPF for the government-guaranteed floor.

A practical use case: ladder SSBs across multiple monthly issues to create a predictable semi-annual income stream. Pair with S-REIT quarterly distributions to smooth cash flow. Use our Singapore Retirement Calculator to model how SSBs fit alongside CPF LIFE and S-REITs.

Frequently Asked Questions

Can I use CPF OA to buy Singapore Savings Bonds?
Yes — through CPFIS (CPF Investment Scheme) via a CPF Investment Account with DBS, OCBC, or UOB. CPF OA earns 2.5% p.a. guaranteed, so SSBs using OA money only make sense when the SSB 10-year average exceeds 2.5%.
What happens if I need my money back urgently?
Submit a redemption request through ATM, internet banking, or MAS SGS Portal before end of month. Your full principal plus accrued interest is credited to your bank account at the start of the following month. No penalty applies.
What is the maximum I can invest in SSBs?
S$200,000 across all active issues at any one time. You must redeem existing holdings before applying for new ones once you reach this cap.
Are SSB returns better than fixed deposits in 2026?
Depends on holding period. SSB Year 1 (~1.36%) is generally below the best promotional FD rates. For 3–5 year holds, SSBs often match or exceed FD rates — with much better liquidity.
Is SSB interest taxable in Singapore?
No — fully tax-exempt for individual investors. You do not declare it in your annual income tax return, making SSBs particularly attractive for investors in higher tax brackets.

Start Building Your Singapore Portfolio

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