Singapore Savings Bonds (SSB): How They Work, Pros and Cons [2026]

Looking for somewhere safe to keep your savings, but don’t want to lock the money away for years with no way out?

That’s the gap Singapore Savings Bonds (SSBs) were designed to fill. They’re backed by the government and start from $500. You can also cash out in any month without a penalty.

The trade-off is that returns are modest. Below, we look at how SSBs work, how to buy and redeem them, and whether they’re right for you.

Key Takeaways

• Singapore Savings Bonds are issued by the Singapore government, and you can always get back the full amount you invested, with no capital loss.
• SSB interest steps up each year over a term of up to 10 years, is fixed for the bond’s full term once it’s issued, and is paid out every six months.
• You can invest from $500, in multiples of $500, and hold up to $200,000 in SSBs at any one time, counting cash and SRS purchases together.
• SSBs can be redeemed in any month without a penalty, but the money is only returned early in the following month, so they aren’t instant cash.
• MAS states that interest earned on Singapore Savings Bonds is tax-exempt. SSBs can be bought with cash or SRS funds, but not with CPF savings.

What Are Singapore Savings Bonds (SSBs)?

SSBs are a form of Singapore Government Securities (SGS) built for individuals rather than institutions. When you buy one, you’re lending money to the Singapore government, which pays you interest in return.

The programme is run by the Monetary Authority of Singapore (MAS), and the first SSB was issued in October 2015. Those first bonds reached their full 10-year term in 2025.

A new SSB is issued every month. In its latest FAQs, MAS says it will keep issuing new SSBs monthly until at least 2030.

Unlike other types of bonds, SSBs can’t be traded. You never sell an SSB to another investor. Instead, you can return it to the government in any month and get your full investment back, plus any interest you’ve earned.

So an SSB’s value doesn’t rise or fall with market interest rates the way a regular government or corporate bond’s does.

Singapore Savings Bonds at a Glance

Feature	Details
Issuer	Government of Singapore
Who can buy	Individuals aged 18 and above, including foreigners. SSBs must be held in your own name, so companies, trusts, and joint CDP accounts can’t be used
Term	Up to 10 years
Minimum investment	$500, then multiples of $500
Holding limit	$200,000 per person, cash and SRS combined
Interest	Steps up every year, paid every six months
Ways to pay	Cash or SRS funds (CPF can’t be used)
Early exit	Any month, no penalty
Tax on interest	Exempt, according to MAS

Source: Savings Bonds product page, as of October 2026.

How Do SSB Interest Rates Work?

SSB interest rates start lower and rise every year you hold the bond. This is called the “step-up” feature, and it rewards you for staying invested longer.

Each month’s rates are based on the average yields of Singapore government bonds in the previous month. MAS sets them so that if you hold an SSB for a given number of years, your average return is broadly in line with a government bond of the same length.

Once a bond is issued, its interest rates for all 10 years are locked in. If market rates fall later, your SSB keeps paying what was promised.

A worked example

Here’s the interest schedule for the SSB issued in November 2026, taken from the MAS bond details page for that issue.

Year	Interest rate that year	Average return per year if held to this point
1	1.67%	1.67%
2	2.00%	1.83%
3	2.19%	1.95%
4	2.35%	2.05%
5	2.49%	2.13%
6	2.61%	2.21%
7	2.70%	2.27%
8	2.79%	2.33%
9	2.91%	2.39%
10	3.08%	2.45%

Source: MAS, November 2026 issue (SBNOV26). Each new issue has its own schedule.

Say you put $10,000 into this issue. In the first year, you’d earn $167, paid as two instalments of $83.50.

Hold it for all 10 years, and the yearly payouts add up to $2,479 in total interest, based on our calculation from the MAS schedule. Redeem after just one year, and you’d have earned only the $167.

SSB interest doesn’t compound on its own. Payouts go straight to your bank or SRS account, so they only keep earning if you reinvest them yourself.

How Have SSB Interest Rates Changed Over the Years?

SSB rates have moved up and down with Singapore government bond yields since the programme began in 2015.

In 2020 and early 2021, when interest rates around the world were very low, some new SSBs offered an average return of under 1% a year over 10 years. In parts of 2023 and 2024, after rates rose sharply, some issues offered more than 3% a year.

MAS notes that the 10-year SGS yield has stayed between 2% and 3% for most of the past decade. That’s roughly what a typical SSB has paid, though some months have come in below or above it.

Because rates change every month, it’s worth checking this month’s SSB rate on the MAS website before you apply. Rates for each new issue are announced on the first business day of the month.

How to Buy Singapore Savings Bonds

Buying an SSB takes a few steps the first time, but it’s straightforward after that.

1) Get the right accounts ready

To buy with cash, you’ll need a bank account with DBS/POSB, OCBC, or UOB, and an individual CDP Securities account with the Direct Crediting Service (DCS) switched on. DCS is how your interest and redemption money gets paid into your bank account.

Joint CDP accounts can’t be used. You also don’t need a brokerage account.

To buy with SRS funds, you only need an SRS account with one of the three local banks that run SRS.

2) Apply during the monthly window

Applications for each issue open on the first business day of the month and close a few business days before the month ends. You can apply through DBS/POSB, OCBC, and UOB ATMs, internet banking, or their mobile apps, depending on the bank. SRS applications go through your SRS operator.

You can’t apply over the counter at a bank branch, and an application can’t be changed or cancelled once it’s submitted.

Each application carries a non-refundable $2 transaction fee (as of 2026). This is charged even if you don’t get any bonds.

3) Check your allotment

Results are announced near the end of the month, and the bonds are issued on the first business day of the following month. You can track all your holdings in one place on the My Savings Bonds portal, which MAS links from its SSB page.

What happens if an issue is oversubscribed?

When more money is applied for than the amount on offer, you may get less than you asked for.

The bonds are spread across as many applicants as possible, in blocks of $500, rather than serving the largest applications first. During periods of high demand, such as late 2023, many applicants received less than they applied for. Any money not used is refunded to you.

Applying for more than you want doesn’t improve your chances. The central bank recommends applying only for the amount you actually wish to buy.

How to Redeem Singapore Savings Bonds

You can get your money out in two ways: wait for the bond to mature, or redeem it early.

Redeeming before maturity

You can redeem your SSBs in any month, in multiples of $500, with no penalty. You’ll get back the amount you redeem in full, plus the interest it has earned since the last payout.

Redemption requests go through the same channels as applications. Cash investors can use any of the three banks, while SRS investors must redeem through their SRS operator.

The catch is timing. The money only arrives by the second business day of the following month, so it can take several weeks depending on when you submit. Each redemption request also costs $2 (as of 2026).

At maturity

You don’t need to do anything when an SSB reaches the end of its 10-year term. Your principal and final interest payment are paid automatically into your DCS-linked bank account or SRS account, and no fee is charged.

Can you swap an old SSB for a new one?

Yes, MAS allows this. If a newer issue looks more attractive than one you hold, you can submit a redemption request for the old bond and apply for the new one in the same month, as long as your total holdings stay within the $200,000 limit.

Before you do, it’s worth weighing a few things:

• Your redemption money only arrives the following month, so you’ll need separate cash to pay for the new application.
• If the new issue is oversubscribed, you may get less than you applied for. Redemption requests can’t be cancelled once submitted, and in the same month both windows close before allotment results are announced, so part of your money could end up back in cash rather than in SSBs.
• A new SSB starts from its own first-year rate, which can be lower than the later-year rates your existing bond is already paying. A higher 10-year average doesn’t always mean you’ll earn more over the years you actually hold it.
• Each redemption request and each application carries its own transaction fee.

What Happens to Your SSBs When You Pass Away?

SSBs can’t normally be transferred, but there are exceptions, and the death of the bondholder is one of them.

According to MAS, your SSBs will pass to your beneficiaries under your will or, if you don’t have one, under Singapore’s intestacy laws. These transfers don’t count towards the beneficiary’s own $200,000 limit.

If you’d like a say in who receives your SSBs, it’s one more reason to write a will. Without one, the Intestate Succession Act decides who inherits, and in what shares. Our guide to estate planning in Singapore covers the bigger picture.

SSBs vs T-bills, Fixed Deposits, and SGS Bonds

SSBs aren’t the only low-risk option. Here’s how they compare with the main alternatives.

SSBs vs Treasury bills (T-bills)

T-bills are also issued by the government, but they mature in six months or one year, and their yield is set at auction. They suit money you know you won’t need for that fixed period.

Unlike SSBs, T-bills can also be bought with CPF savings, as well as cash and SRS. The minimum is $1,000.

SSBs vs fixed deposits

Fixed deposits are offered by banks rather than the government, and they’re protected under Singapore’s deposit insurance scheme up to set limits. Most run from a few months to a few years.

Withdrawing early from a fixed deposit usually means losing some or all of the interest, depending on the bank. With an SSB, you keep the interest you’ve already earned. That said, fixed deposit promotions can sometimes beat SSB rates over short periods, so it’s worth comparing at the time.

SSBs vs SGS bonds

SGS bonds are regular government bonds with terms from 2 to 50 years. They have no holding limit, but they trade on the market, so you may get back more or less than you paid if you sell before maturity.

SSBs don’t carry that price risk, but they do come with the $200,000 cap.

Pros and Cons of Singapore Savings Bonds

Pros

• SSBs are fully backed by the Singapore government, which has the top AAA credit rating. You always get back what you put in.
• You can redeem in any month without a penalty, and there’s no holding period to commit to upfront.
• Your bond’s 10-year rate schedule is fixed once it’s issued, so it can’t be cut if market rates fall.
• You can start with as little as $500.
• The interest is tax-exempt, so you don’t include it in your taxable income.

Cons

• You can hold at most $200,000 in SSBs, which limits how much of a large sum they can take.
• The highest interest comes in the later years. Redeem early, and your average return is lower.
• Getting your money back can take several weeks, so SSBs shouldn’t be your only emergency cash.
• Interest is paid out rather than reinvested, so it only earns more if you reinvest it yourself.
• Returns may not keep up with inflation. When inflation spiked in 2022, it outpaced what SSBs were paying, and over the long run SSB returns have generally stayed fairly close to Singapore’s inflation rate.

Are Singapore Savings Bonds Worth It?

SSBs are worth considering for savings you want kept completely safe, earning more than a basic savings account would, but still within reach if your plans change.

They tend to suit:

• Money you’re unlikely to need soon, but would like to be able to reach if something changes
• Part of a larger emergency fund, alongside cash you can withdraw immediately
• Retirees, or those close to retiring, who want part of their savings kept free from market swings
• SRS funds you’d rather not leave sitting in the account earning very little interest

They’re less suited to growing your wealth over the long term. Over long periods, diversified investments such as stocks have historically delivered higher returns than government bonds, though with the risk of losses along the way.

In my opinion, SSBs work best as one part of a wider plan, not the whole of it. If you’re using SRS funds, it’s also worth weighing them against the other SRS investment options, including SRS endowment and annuity plans that provide guaranteed payouts in retirement.

If you’re unsure how much belongs in SSBs, it helps to look at your finances as a whole rather than one product at a time.