Uncle Huat

Breaking down of Singapore Saving Bonds ("SSB")

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Not breaking bad. SSB is good, so it is more like breaking good #UncleJoke

Part 1: Understanding Singapore Savings Bonds (SSB)

For the Investor

  1. What They Are: Singapore Savings Bonds (SSBs) are monthly-issued, low-risk investment options by the Singapore government, first introduced in 2015. These bonds have a 10-year term with escalating interest rates to reward long-term investors.

  2. Investment Flexibility: You can start with as little as $500 and go up to $200,000. Plus, you can cash out anytime in multiples of $500 without major penalties – just a $2 fee.

  3. Interest Payments: SSBs pay interest every six months, tax-free, with rates stepping up annually. Currently, they offer around 3.32% average over 10 years, reflecting the current interest rate environment.

Part 2: Why Choose SSBs? And What’s the Catch?

Balancing Pros and Cons

  1. Virtually Risk-Free: Backed by Singapore’s government, these bonds are super safe, meaning you won’t lose your initial investment.

  2. Liquidity Plus: You can access your money whenever you need it, with minimal fees, making SSBs great for emergency funds or short-term savings.

  3. Diversify with Ease: SSBs are a smart addition if your portfolio is heavy on stocks or corporate bonds.

  4. Cons to Consider: While safer, SSBs offer lower returns compared to some other investments. Higher returns come later in the 10-year term, and monthly issues mean interest rates can vary.

Part 3: Getting Started with SSBs

Investing & Redeeming Made Simple

  1. Prep Work: Have a local bank account and a Central Depository (CDP) account linked to it.

  2. Application Process: Apply through ATMs or online banking between specific dates each month. Remember, there’s a $2 application fee.

  3. Allocation & Interest: Check allocation on the 3rd last business day of the month. Enjoy semi-annual interest payments directly to your bank account.

  4. Redeeming Bonds: Redeem anytime in $500 multiples via internet banking. You’ll get your investment and accrued interest by the 2nd business day of the following month.

How to buy Treasury Bills? (T-Bills)

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🍍Lai lai huat ah buy T-Bills

What is this T-Bills?

Singapore’s Treasury Bills (aka T-Bills), backed by our awesome and prudent Singaporean government, are a prime choice for risk-averse investors. These short-term debt securities offer capital preservation, low risk, and predictable returns, making them an excellent option for those seeking safety and stability in their investments. Especially during these uncertain times with rising interest rates, the current T-bills have better rate of return than bank’s interest. The Government issues 6-month and 1-year T-bills.

How do I buy T-Bills as part of my investment plan?

The 6-month T-bills are issued every two weeks (as of the date of this article we are in the reverse interest rate era, where shorter investment results in higher interest rates), the 1-year T-bills are issued every three months. 

Check out the Auctions and Issuance Calendar for details on the latest T-bill issuances.

You can buy the T-bills using cash, supplementary retirement scheme (SRS) funds, or CPFIS Investment scheme funds. 

đź’° Cash

  1. To buy T-bills using cash, you need a bank account with one of the three local banks (DBS/POSB, OCBC, and UOB). 

  1. You will also need an individual Central Depository (CDP) account with direct crediting services activated. This is to allow your coupon (meaning your interest income) and principal payments (your capital money) to be credited directly to your bank account.

  1. Once prepared, you can apply for the T-bills through your banks (DBS/POSB, OCBC, and UOB) outlet or the banking app. 

If successful, the transaction would be reflected on your CDP statement in 2-3 working days. 

CPF Investment Scheme (CPFIS)

You can use your CPF’s ordinary account to buy T-Bills, especially in this current era where T-bills are around 3%-4%, while your CPF OA is paying 2.5% only. 

You would need a CPF Investment Account with one of the three CPFIS agent banks (DBS/POSB, OCBC, and UOB). 

You can apply online, depending what banks you are using: 

If all fails, you can submit an application in person at any branch of the CPFIS bond dealers (DBS/POSB, OCBC, and UOB) when buying using your CPFIS-OA account.

Netflix is no longer chill

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You shouldn’t “steng” cigarette with your mates in Singapore as well.

🇸🇬 In Singapore this week

No More “hun jikki” – SG’s budget raises tax for cigarette.

More grant for first time homebuyers to buy HDB and if you earn more, you should save more! CPF contribution to be increased.

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For more news, you can check out the link here

BTO but divorce, then how?

TLDR: HDB take back, refund deposit. No possession gain, relationship lost.

A woman has won a court appeal to get her ex-husband to transfer his share of a Build-to-Order (BTO) flat to her. The couple married in 2015 and applied for the Tampines flat in 2017, but the man left the family home in 2019 and divorce proceedings were initiated in March of that year. The couple had not yet taken possession of the flat, nor made full payment for it, and the divorce court had ruled that it be returned to the Housing and Development Board (HDB) and refunded to both parties. The woman appealed this decision and offered to pay the ex-husband whatever he had paid towards the deposit, stamp, and conveyancing fees, with accrued interest, in exchange for the transfer of his interest in the flat to her. This offer addressed the judge’s concerns that the woman’s stance was unreasonable and that she would potentially gain a windfall if the flat was transferred to her. The appeal judge noted that there was no windfall to speak of and that the flat was not yet an asset that could be sold in the open market. Read more from the news here.

No Money, No Honey

TLDR: Man got rejected, sue the girl. Girl sue back.

A man has launched two lawsuits against a woman in Singapore, one for $22,000 in damages for breach of agreement to improve their relationship, and one for $3 million for emotional trauma. The first lawsuit was thrown out by the Magistrate’s Court and the deputy registrar called it an abuse of process. The pair first met in 2016 and became friends, but problems arose in 2020 when the woman asked for less interaction and the man felt their relationship was stepping back. The man went on to initiate legal action, making unreasonable demands and referencing a list of expected improvements that was later used as the basis for his $22,000 claim. Read more from the Read more from the news here

She strikes back!

A woman in Singapore is countersuing a man who is suing her for SGD 3 million ($2.2 million) after she rejected him. Nora Tan Shu Mei is seeking damages of SGD 1,480 ($1,082) for expenses incurred to protect herself from harassment and SGD 1,000 ($722) for expenses incurred while participating in “healing” sessions and counseling at the man’s request. Tan is also seeking damages for future counseling expenses. K Kawshigan, who is a director at drone company D1 Racing, launched two lawsuits against Tan after she told him that she saw him only as a friend. Read more from the news here

World News 🌏

Netflix no longer chill

Netflix may soon end password sharing by tying accounts to a single location. The new plan would require users to pick a “primary location” or be charged an “extra member” fee if a device connected to the account doesn’t access Netflix using the location’s Wi-Fi every 31 days. This move follows Netflix’s loss of subscribers for two consecutive quarters in 2022, and the company’s efforts to cut back on password sharing, including charging fees for extra users in Latin America and allowing users to kick off profiles from their own accounts, have already helped the company recover subscribers and add more than it expected in the last quarter of 2022. Read more from the news here

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List of Personal Finance blogs and websites in Singapore (Jan 2023 version)

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Money Sense

MoneySense is a national financial literacy initiative in Singapore, led by the Monetary Authority of Singapore and Ministry of Manpower. It offers a wealth of information and resources to help people in Singapore understand financial instruments and concepts. The website is non-profit and a trusted source for personal finance.

Money Smart

MoneySmart is a pioneer in Singapore’s personal finance space and offers a wealth of information on various topics in an easy-to-understand manner for beginners. It’s a great starting point for learning about personal finance.

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Seedly

Seedly is a personal finance tracking app that integrates with bank accounts and offers a financial community where users can ask questions, provide answers, and review financial products. It was acquired by the Hyphen Group in 2020 and features a popular blog and Facebook group with posts on personal finance and investment topics. The group includes many financial bloggers and industry experts.

The Woke Salaryman

The Woke Salaryman is a personal finance blog in Singapore known for entertaining and viral content on finance topics (via comics). Its Facebook page has over 100,000 followers and won the SGX Orb award in 2019 for The Visual Treat. The founders now work on the blog full-time, producing content more frequently.

Investment Moats

Created and run by Kyith Ng, is one of the oldest personal finance websites in Singapore, established in 2005. It covers topics like wealth management, investing, stock analysis, and policy thoughts. Kyith’s articles are comprehensive and well-crafted, and he also tracks dividends and maintains a public portfolio. You can check them out here

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