As you can see from the statistic and chart above, you will notice the overall interest rate SSB offered has risen significantly since Dec 21 and has maintained moderate increase over the next few month. This was also supported by the strong takeup volume since Dec 21 due to higher interest offered. (For the Mar takeup volume, it will only be release on Mar. However do expect the takeup volume to be the highest as compared to previous months due to higher interest offered in the March issue.) Based on the analysis, interest rate seems to be on an uptrend in the coming months as MAS is tightening monetary policy to fight inflation.
If you have idling cash lying around, do take advantage of the Mar SSB issuance and subscribe for it as is giving 0.59% for 1st year and 1.35% for the 2nd year. (Although the interest offered does not match inflation but it can help you cushion some inflation impact.)
SSB can be withdrawn at anytime on a given day of the month and you still get to earn accrued interest! Do find out more about how to apply for SSB on the link found below:
http://kfgw-investing.blogspot.com/p/bond.html
Last updated 6 Feb 2022
