Wondering if you should invest in the current month’s Singapore Savings Bond (SSB) or wait for next month for potentially higher interest rates?
Thanks to SSB technical specifications by the Money Authority of Singapore (MAS) and some really complicated mathematics done by user “@hwckhs” from I Love SSB, we can actually predict with high accuracy what next month’s SSB interest rate will be!
TL;DR: Singapore Savings Bond 2024 Feb Interest Rate Projection Guide
FYI: You can still apply for the January 2024 SSB from now until 9pm today (23 December 2023) or 7am to 9pm on Tuesday (26 December 2023).
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What Is Next Month’s Singapore Saving Bond Interest Rate Projection?
For the next SSB, the 10-year average return for the February 2024 SSB is projected to be 2.83% p.a., with interest rates from 2.79% p.a. (year 1) to 2.83% p.a. (year 10).
Singapore Savings Bond Yield
As of the time of writing, the confidence level is at 78%. This is because confidence increases towards the end of the month as more daily SGS yields become available.
The latest daily SGS yield considered is on 22 December 2023.
Disclaimer: These rates are projected by I Love SSB using SSB technical specifications given by MAS. The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. Readers should always do their own due diligence and consider their financial goals before investing in any investment product. Note that the information is accurate as of 23 December 2023.
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Is the Singapore SSB Rates Projection Accurate?
You might be wondering, how do we even get these figures and are the projections even accurate?
As mentioned before, there are SSB technical specifications by MAS that allow us to make these projections. However, as the math is really complicated for the average person to understand, we’ll trust the results instead.
I Love SSB has done past SSB interest rate projections, and so far, they have all seen an accuracy rate of above 95%!
The website has even backtested data all the way from 2015 onwards to further prove that the results are fairly accurate.
Here are the past projections for the last two months:
As you can tell, the 10-year average return is pretty much on the money, while the other numbers aren’t too far off either!
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How Can I Use the Singapore Bonds Interest Rate Projections to My Advantage?
Now that we can project future SSB interest rates, here’s how you can use that information to your advantage!
For starters, if you have a sum of money that you want to invest in Singapore Savings Bonds but have yet to do so, you may wait for the following month if it has a higher projected interest.
For example, since the January 2024 SSB will be giving 3.00% p.a. (year 1) and 3.07% p.a. (year 10):
You’ll want to subscribe to the current January 2024 SSB as for the next February 2024 SSB, the 10-year average return is projected to be 2.83% p.a., with interest rates from 2.79% p.a. (year 1) to 2.83% p.a. (year 10).
For seasoned SSB investors with previous allotments, you may use these projections to start a bond ladder.
You’ll essentially redeem an earlier SSB issue and reinvest it into a high-yielding SSB for more interest.
Read More: How To Redeem Singapore Savings Bond (2024)
For those of us who want to see detailed calculations of how much more interest you would earn, here is a calculator by I Love SSB that you can use to see how much more interest you would earn:
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