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Singapore Financial savings Bond: Totally allotted!


The Singapore Financial savings Bond (SSB) was 2.44x oversubscribed in October which led to nearly each applicant who utilized for greater than $10,000 getting solely $10,000.

Because the Singapore Financial savings Bond this month in November has a better 10 12 months common yield of three.47%, oversubscription could be very a lot anticipated.

I had $38,000 put aside for voluntary contribution to my CPF account in 2023.

With $10,000 of Singapore Financial savings Bond purchased in October, I had $28,000 left.




As my plan remains to be to channel cash initially meant for voluntary contribution to my CPF account into Singapore Financial savings Bond so long as the bond’s 10 12 months common yield is 3% or larger, I submitted an utility for $14,000 this month.

Why not the total $28,000 which was the refund from October’s utility?

Nicely, two causes:

1. With rates of interest nonetheless rising, might December’s Singapore Financial savings Bond provide a better 10 12 months common yield?

2. I anticipated the oversubscription price to be even larger and, so, we’d even see a decrease than $10,000 allotment per applicant in November.




No level making use of for extra.

Sure, I ready myself mentally for a number of the cash to be refunded which I feel is prudent in order to not set myself up for disappointment.

So, what is the outcomes?


Shock!

Though oversubscribed, it was much less so in comparison with the previous month’s SSB.

Sure, my expectation for a fair larger oversubscription price did not materialize which is not a foul factor.

Allotted: $14,000.

Quantity refunded: $0.

So, I received 100% of what I utilized for!

Bullseye!

Jackpot!

So fortunate!




This additionally signifies that I used to be proper to not apply for extra as a result of if I had utilized for $28,000, I’d likely have ended up with $14,000 allotted anyway.

Now, of the $38,000 earmarked for CPF voluntary contribution, I nonetheless have $14,000 out there.

Am I making use of for subsequent month’s Singapore Financial savings Bond?

So long as the ten 12 months common yield of Singapore Financial savings Bond is larger than 3%, I’m .

What about cash earmarked for topping up the CPF-MA?

The CPF-MA pays 4% p.a.

So, except the Singapore Financial savings Bond affords a ten 12 months common yield of 4%, I’ll nonetheless prime up my CPF-MA.




Just lately printed:
6 months T-bill disappointing.

Associated publish:
1. SSB 2.44x oversubscribed.
2. 3.47% 10 12 months common yield!
3. SSB or CPF? It’s a no brainer.





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