SINGAPORE - The Monetary Authority of Singapore (MAS) will double the individual limit for holding Singapore Savings Bonds (SSB) and allow investors to buy the instruments using their Supplementary Retirement Scheme (SRS) funds, the financial sector agency announced on Monday (Dec 17).
The maximum amount of SSB that an individual can hold will be raised to $200,000 from the current $100,000, the MAS said. Both changes will take effect from Feb 1, 2019.
The SSB programme has garnered about $3.7 billion of investments from close to 100,000 individual investors since its launch in October 2015, the MAS said. During this time, the authority has received requests from the public to allow the purchase of the bonds using SRS funds, which are voluntary retirement savings contributed by Singapore workers above the national Central Provident Fund scheme.
"Taking into account public feedback, MAS has worked with the banks to enable SRS funds to be invested in SSB. This will expand the range of products available to SRS members and help them save and plan for retirement," the MAS said in a press statement.
To apply for SSB using SRS funds, investors may apply through the Internet banking portals of their respective SRS operators, which are the local banks - DBS, POSB, OCBC Bank and United Overseas Bank. As with cash applications, the minimum application amount is $500, and a $2 transaction fee will be deducted from the SRS account for each application.
The new increased individual limit on SSB holdings will apply to SSB purchased with cash and with SRS funds.
The MAS will also launch a "My Savings Bonds" portal in March for investors to view their consolidated SSB holdings via the SSB website.