Singapore Savings Bonds’ 10-year average return hits new high of 1.79% for March issue

The first-year interest rate stands at 0.59 per cent while the average return over a decade is 1.79 per cent per annum. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - The average return over 10 years for the March issue of the Singapore Savings Bonds (SSBs) has hit 1.79 per cent - its highest rate since 2019.

SSBs last recorded an average return over 10 years of 1.95 per cent per annum for its September 2019 issue.

The first-year interest rate for the March 2022 issue stands at 0.59 per cent, while the 10-year interest rate is 2.18 per cent.

The maximum amount offered for the upcoming March issue is $150 million. Interest payment dates will be every six months on March 1 and Sept 1 until maturity.

Last month, applications for February 2022’s SSBs issue stood at around $75.5 million.

The first-year interest rate was 0.52 per cent and the 10-year interest rate was also at 2.18 per cent. Meanwhile, the average return over 10 years was 1.64 per cent per annum.

Applications peaked at $568 million in July 2018 and hit an all-time low of $10.1 million in July 2020 amid a low-interest-rate environment.

SSBs are backed by the Singapore government and were designed to offer individuals a long-term, flexible savings option with safe returns. The inaugural edition was issued in October 2015.

SSBs offered in any given month will pay a coupon that is linked to the daily average Singapore Government Securities yields as published by the Monetary Authority of Singapore in the previous month.

The latest SSB issue closes on Feb 23, 2022.

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