SSB, Treasury Bills and Term Deposits: How to Maximize Your Savings with Low-Risk Tools

“Higher inflation not only drives up the cost of living, but idle cash in low-interest bank accounts also loses value over time,” Mrs. Wee adds.

Make your money grow

Beyond SSBs, what other low-risk investment vehicles and alternative treasury products can you consider to grow your excess funds? here are a few Lorna Tan, Financial Planning Literacy Lead at DBS recommended :

Goods of treasure : Treasury Bills are short-term negotiable Government of Singapore (SGS) securities, available in terms of six months or one year. Treasury bills do not pay interest, unlike SSB and SGS bonds. Instead, they are issued at a price below face value. At maturity, you will receive the full face value.

If you can save your money for a year, you might consider investing in one-year treasury bills. They offer higher yields than six-month ones because the risk is higher in the security due to the longer duration.

SGS requirements: These are longer-term bonds that range from two to 50 years. You can receive regular interest payments on the amount you invest every six months from the month of issue.

For example, if you buy $10,000 of 50-year SGS bonds at a coupon rate of 3%, you will receive two installments of $150 twice a year, until the bond matures.

The minimum investment amount for treasury bills and SGS bonds is $1,000.

Fixed deposits: Singapore banks have aggressively raised their fixed deposit rates in line with higher lending rates. Fixed deposit rates offered by local banks now hover around 3% per annum for 12 months, Mrs. Tan said.

How it works is simple: you deposit a lump sum of money over a set period of time and receive a fixed amount of interest at regular intervals.

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