Singapore Savings Bonds: A Complete Guide For Beginners

You have money left after this month’s bills, but you may need it for an expense later. Singapore Savings Bonds (SSBs) let you earn interest on that money while keeping the option to redeem it before the bond’s 10 year term ends.

SSBs are backed by the Singapore Government, and you always get back the amount you invested, with no loss from market prices. The catch is timing. Redemptions follow a monthly timetable, so the money is not available on the day you ask for it. Keep that in mind when deciding how much to put in.

Singapore Savings Bonds At A Glance

The table below covers the key terms as of October 2026. Your account type decides where your payments go, while the redemption timetable decides when you can use them.

Table of Contents

What Are Singapore Savings Bonds?

An SSB is a Singapore Government Security designed for individual savers. When you buy one, you are lending money to the Government in return for interest and the repayment of your principal, which is the amount you invested.

A new SSB is issued every month, and each issue has its own interest schedule. You can hold several issues at once, but the S$200,000 limit applies to your combined holdings, not to each bond or account separately.

SSBs are not traded on the stock exchange. To get your money out, you redeem them with the Government. This is different from ordinary bonds, whose market prices can rise or fall before they mature.

Government backing protects your principal, but it does not solve every problem. Inflation can reduce what your savings will buy, another product may pay more over the period you plan to save, and transaction fees reduce what you actually earn.

How SSB Interest Works

Read The Rate For Your Holding Period

An SSB’s interest schedule is locked in on the day it is issued. Later changes in market interest rates do not affect it.

Rates are designed to step up the longer you hold the bond, although some years may pay the same rate. The advertised 10 year average return assumes you keep the bond for the full term. It is not the rate you earn every year from the start.

If you expect to need the money in one or two years, look at the average return for that holding period instead. Check the current SSB issue and its interest rates on the MAS website before you apply, because every new issue can offer a different schedule.

Work Out The Dollars You Will Receive

Take an S$8,000 investment paying 2.00% in the first year and 2.20% in the second. These are example rates for illustration only, not a current SSB offer.

• First year interest: S$8,000 × 2.00% = S$160
• Second year interest: S$8,000 × 2.20% = S$176
• Total interest over two full years: S$336, before fees

Interest is paid into your account every six months. It is not added to the bond’s principal, so the second year calculation still uses S$8,000. If you want those payments to keep earning, you need to decide separately where to put them.

Include Fees In Smaller Investments

The S$2 application fee is small in dollars, but it is 0.4% of a S$500 investment. Add the S$2 fee for redeeming early, and the two fees come to 0.8% of that amount.

At the example rate of 2.00%, S$500 earns S$10 over a full year. After both fees, you keep S$6. This assumes you redeem after the full first year and pay no other costs.

On S$8,000, the same S$4 in fees is only 0.05%. These percentages show the fees as a share of your investment, not as annual interest rates.

Starting small is a sensible way to learn how the process works. Just remember that every separate application costs another S$2. Weigh the convenience of frequent small purchases against the fees, without putting off essential saving to avoid a small charge.

How To Buy Singapore Savings Bonds

Step 1: Prepare The Right Accounts

To buy with cash, you need a bank account with DBS/POSB, OCBC or UOB, and an individual Central Depository (CDP) Securities account with the Direct Crediting Service (DCS) turned on. DCS sends your interest and redemption payments straight to your linked bank account. You do not need a brokerage trading account just to buy SSBs.

To buy with SRS funds, use your SRS account with one of the three SRS operators. The MAS Singapore Savings Bonds FAQs explain the accounts and channels you need.

Step 2: Check The Issue And Closing Date

Confirm the issue code, interest schedule and closing date before you apply. Applications open at 6pm on the first business day of the month and close at 9pm on the fourth last business day.

Choose an amount in multiples of S$500. Make sure your account holds enough for the investment and the S$2 fee, with money left over for upcoming bills.

Step 3: Submit Through Your Bank

Cash applications can be made through participating banks’ ATMs, internet banking or mobile banking apps. For SRS applications, use your SRS operator’s internet banking; DBS also offers a mobile app channel.

Cash is deducted when you apply, while SRS funds are set aside. Once submitted, an application cannot be changed or cancelled, so check the amount carefully before you confirm.

Step 4: Check Your Allotment

Applying for S$8,000 does not guarantee you will receive S$8,000 of bonds. If demand is higher than the amount on offer, you may only get part of what you applied for.

MAS announces allotment results on the third last business day of the month. Any unallotted cash is refunded by the end of the second last business day, but the application fee is not. The bond is issued on the first business day of the following month, and the first interest payment arrives six months after that.

Interest starts from the issue date, not from the day the money left your account. Keep your application confirmation and check how much was actually allotted to you.

How To Redeem Your SSBs

You can redeem all or part of an issue in multiples of S$500. There is no penalty for leaving early, but each redemption request costs S$2.

If you bought with cash, submit your request through DBS/POSB, OCBC or UOB internet banking or ATMs, or through OCBC’s mobile app. If you bought with SRS funds, submit the request online through your SRS operator.

According to the MAS guide to redeeming Savings Bonds, requests close at 9pm on the fourth last business day of the month. Your principal and accrued interest are paid by the second business day of the following month. Requests cannot be changed or cancelled once submitted.

Plan Backwards From The Payment Date

Say you need money for an expense in December. A request submitted within November’s window would put the payout on the timetable for early December. Check the exact business dates and leave some margin before you commit to paying a bill.

If you miss November’s deadline and submit in December instead, the money only arrives in January. That delay matters, even though the bond itself allows early redemption.

When you redeem, you receive the interest earned for the time you held the redeemed amount, so there is no need to wait for the next six monthly payment. When a bond reaches the end of its 10 year term, your principal and final interest are paid out automatically, with no request needed and no S$2 fee.

Using Cash Or SRS Funds

The bond works the same way either way, but your money ends up in different places. Payments from SSBs bought with cash go to your bank account linked through DCS. Payments from SSBs bought with SRS funds go back into your SRS account.

Redeeming an SSB bought with SRS funds does not make the money free to spend. Taking it out of your SRS account is a separate withdrawal, with its own rules.

Under IRAS rules on SRS withdrawals, withdrawing before your prescribed retirement age generally means a 5% penalty, and the full amount is taxed as income. Exceptions apply for death, medical grounds, bankruptcy and certain full withdrawals by foreigners. As of October 2026, the statutory retirement age is 64, but your prescribed retirement age is the one in force when you made your first SRS contribution.

Decide whether the money belongs in SRS at all before choosing what to invest in within it. An SSB’s flexible redemption does not override the retirement scheme’s withdrawal rules.

When SSBs May Suit Your Savings

SSBs can work well when protecting your principal matters and you are not sure exactly when you will spend the money. They may suit part of a fund for a future purchase, or retirement savings you can leave invested while your plans take shape.

Separate Immediate Cash From Later Savings

Start with the money you must be able to reach today: essential expenses, scheduled loan repayments and an emergency reserve for costs that cannot wait a month.

Only then look at savings you could leave invested through a monthly payout cycle. If your entire emergency fund sits in SSBs, an urgent bill could arrive before the money does.

For example, someone with variable income may need more cash on hand than someone with a steady salary and the same monthly expenses. What matters is whether your household can absorb the delay, not a fixed percentage to put into bonds.

Also read: Should you use your emergency fund or take a personal loan first?

Review Expensive Debt Before Adding Investments

If you carry costly revolving debt, such as a credit card balance, compare its interest and charges with what an SSB would earn. A credit card can charge well over 20% a year, while an SSB pays a few percent at most. Putting spare money into bonds while that balance grows can leave you worse off overall.

Keep a workable cash buffer and make every required repayment. Then check whether paying down debt faster would do more for your finances than another investment, after allowing for any early settlement charges.

Learn more: How to decide between building savings and repaying debt

Comparing SSBs With Other Savings Options

Compare products over the same expected holding period. A 10 year SSB average return and a six month fixed deposit rate answer different questions.

A fixed deposit locks your money for a set tenure, and each bank has its own rules for withdrawing early. Check the minimum placement, any eligibility conditions and how much interest you would keep if you broke the deposit.

Treasury bills (T-bills) have shorter maturities, but they do not offer the same monthly redemption option as SSBs. Consider whether you can hold them until they mature, rather than assuming every Government Security gives you the same access.

A savings account gives you instant access, but its advertised rate may depend on crediting your salary, card spending or keeping a minimum balance. Compare the rate you would actually qualify for.

For each option, write down the cash you expect to receive, the earliest date you can reliably get your money and any conditions you must meet. That comparison is more useful than picking the highest advertised percentage.

Learn more: Compare fixed deposit rates and placement conditions in Singapore

Before Your First Application

Give the money a clear purpose and note the earliest date you might need it. Set aside your immediate cash first, then check the current issue’s return for your likely holding period and make sure your bank or SRS account is ready.

A small first application can help you get used to the statements, interest payments and account set up before you commit more. Keep a record of the issue code, the amount allotted and the months interest is paid, so future decisions are based on the bonds you actually hold.

If you are also managing loan repayments, check that your monthly instalments stay comfortable before tying up extra cash. This guide on how much of your salary should go towards loan repayments can help you set a sensible limit.

If an urgent bill arrives while your savings are tied up in a redemption cycle, apply for an instant loan with Crawfort and check your result instantly in the app.

Important note: This article is for general information only and does not consider your personal financial situation. Before taking a loan or agreeing to a restructuring plan, review the contract carefully and make sure the repayments are manageable.

Frequently Asked Questions