As we move into the second quarter of 2025, April brings a fresh offering of government bonds. If you’re considering investments, the May 2025 Singapore Savings Bond (SSB) is now open for subscription. However, it’s worth noting that the rates have dipped compared to the previous tranche.
In addition to the SSB, there are three Treasury Bills and a 30-year Singapore Government Securities (SGS) bond on offer as well.
For the May 2025 SSB, the average annual returns range from 2.49% to 2.69%, which marks a decline.
Here’s the breakdown of interest rates for each year:
– Year 1: 2.49%
– Year 2: 2.49%
– Year 3: 2.49%
– Year 4: 2.61%
– Year 5: 2.70%
– Year 6: 2.71%
– Year 7: 2.79%
– Year 8: 2.86%
– Year 9: 2.94%
– Year 10: 2.99%
And the average return for each year:
– Year 1: 2.49%
– Year 2: 2.49%
– Year 3: 2.49%
– Year 4: 2.52%
– Year 5: 2.55%
– Year 6: 2.58%
– Year 7: 2.61%
– Year 8: 2.63%
– Year 9: 2.67%
– Year 10: 2.69%
The bond, coded as SBMAY25 GX25050T, offers the lowest rate we’ve seen for SSBs so far this year. The short-term returns stand at 2.49% per annum, with an average of 2.69% annually over a 10-year horizon.
Interestingly, these rates are reminiscent of the ones from late 2024. However, there’s a significant shift to consider – high-yield savings accounts, such as OCBC 360 and UOB One, have also seen their rates decline to slightly above 3% per annum.
Reflecting on my own strategy, I’m pleased I opted to secure funds with the June and September 2024 SSBs, both of which provided over 3% per annum without much hassle. It seems like that decision paid off, given the current rate landscape.
