No need to rush to buy Singapore Savings Bonds: MOF

Around $2-4b will be issued this year.

The government yesterday assured interested investors that there is “no need to rush” when it comes to buying Singapore Savings Bonds.

In a speech at Parliament, Senior Minister of State for Finance and Transport Josephine Teo said that the government intends all individuals to have access to the bonds and could potentially issue $2-4 billion of Savings Bonds this year, depending on demand.

“If total applications exceed the total issuance size in a particular month, the MAS will allocate bonds to all applicants in increasing multiples of $500. The allocation to each individual will stop when the individual gets the full amount applied for, or when all the available bonds have been allocated, whichever comes first. This means that smaller applications will have a higher chance of receiving full allotment, and individuals with larger applications may not get the full amount that they have applied for,” Teo said.

The Monetary Authority of Singapore (MAS) will announce each month’s issuance size on the first business day of that month.

Individuals will be able to apply for the bonds with as little as $500 at any month via ATMs of participating banks, at a transaction fee that is charged by the banks.

Each individual can apply for up to $50,000 per issue and can hold up to $100,000 of Savings Bonds at any point in time. However, these caps will be reviewed if there is a need to after the programme has been in place for some time.