Small savers flock to Singapore Savings Bond

THE Singapore Savings Bond (SSB) programme has exceeded S$1 billion in outstanding amount, with more than 37,000 investors, the Monetary Authority of Singapore announced on Wednesday.

The programme has appealed to small savers, with 55 per cent of all applications comprising investments of S$10,000 and below. In terms of age profile, the majority are older applicants, with 44 per cent of them aged 48 and above.

In response to requests by investors, MAS said that three additional online application channels are now available, namely OCBC and UOB's internet banking portals, as well as OCBC's mobile application. This is on top of options such as the ATMs of DBS/POSB, OCBC and UOB, and the internet banking portal of DBS/POSB.

Aditya Gupta, head of e-business Singapore, OCBC Bank said: "With many customers now banking on their phones, we want to offer them the flexibility of purchasing and redeeming these bonds via our OCBC OneWealth app... It is our goal is to make wealth management as simple, hassle-free and accessible for customers as possible."

MAS said in December 2016 that up to S$2 billion of 10-year Savings Bonds will be offered this year, with a new one issued each month. Interest is paid every six months.

The next SSB on offer opens from 6pm, Feb 1, 2017 to 9pm, Feb 23, 2017. Successful redemption applications will be in effect on March 1, 2017.

In addition, MAS will also provide regular email updates to subscribers on the latest SSB interest rates. Those interested may sign up for the service at the SSB website (www.sgs.gov.sg/savingsbonds) from March 1, 2017 onwards.

This article was first published on Feb 2, 2017.
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