Singapore Savings Bonds (SSBs) are a government-issued savings product you can hold for up to 10 years, where the interest rate steps up the longer you hold, you can get your full capital back any month with no penalty, and you start from as little as S$500. They are run by the Monetary Authority of Singapore and backed by the Singapore Government.
If you are 18 to 28, sitting on your first few thousand dollars of savings and unsure where to park money you cannot afford to lose, this is the product most older Singaporeans wish someone had explained to them earlier. Here is how it actually works, with every number checked against the official MAS pages.
What a Singapore Savings Bond actually is
An SSB is a bond you lend to the Singapore Government. In return, the government pays you interest every six months and gives your money back when you redeem. Because it is fully backed by the Singapore Government, you cannot lose your principal. Whatever you put in, you get back in full.
That is the part most people miss. With shares or an STI ETF, the price moves and you can sell for less than you paid. With an SSB there is no market price to swing against you. The trade-off is that the return is lower than what stocks have historically paid over long periods. SSBs are a place to keep money safe and earning something, not a place to grow wealth aggressively.
A new bond is issued every month. MAS announces the details of each issue, including the rates and the amount on offer, on the first business day of the month, and publishes everything on the official Savings Bonds pages and in the local papers.
How the step-up interest works
This is the feature that makes an SSB different from a fixed deposit. Instead of one flat rate, an SSB pays a rate that rises each year you hold it. Hold for one year and you earn the first-year rate. Hold all 10 years and you earn progressively higher rates in the later years, so your average annual return over the full term is higher than if you cashed out early.
MAS sets the coupon rates for each issue so that the average annual compounded return over a given holding period is linked to the yield of a Singapore Government Securities bond of the same tenor. In plain terms, the rate tracks what the government pays on its longer bonds, and it is designed so the payouts step up year by year rather than down.
Interest is paid into your account every six months. For cash investments it goes to the bank account linked to your CDP account. For SRS investments it goes to your SRS account.
Rates change with every monthly issue. Do not rely on a figure you read in an old article. Check the rate for the current issue on the official MAS Savings Bonds page before you apply, because as of June 2026 the published rate is whatever the latest issue shows, not last year's number.
The numbers that matter: minimum, cap, and tenor
You do not need a lot to start, and there is a ceiling so no single person can hoard the supply. The figures below are the official limits from MAS.
| Feature | What MAS sets |
|---|---|
| Eligibility | Individuals aged 18 and above, with a local bank account and an individual CDP Securities account |
| Minimum per bond | S$500, in multiples of S$500 |
| Maximum individual holding | S$200,000 across all SSBs you hold |
| Tenor | Up to 10 years |
| Interest paid | Every 6 months |
| New issue | One new bond every month |
| Early redemption penalty | None |
The S$500 floor is what makes SSBs realistic for a student or NSF. You can buy a single bond with your first month of savings and add more later in S$500 steps, up to the S$200,000 cap. The cap is generous enough that you will not bump into it for years, so for most readers it is not a real constraint. You can confirm all of these on the official investing in Savings Bonds page.
How to buy: CDP cash or SRS
There are two ways to pay for an SSB, and which one you use depends on where the money sits.
With cash through CDP. First open an individual CDP Securities account and link it to a bank account with DBS/POSB, OCBC or UOB. Then apply for a bond through those banks' ATMs or internet banking, or through OCBC's mobile app. The bonds and any interest show up in your CDP account.
With SRS funds. If you have a Supplementary Retirement Scheme account, you can apply through your SRS operator's internet banking portal, and the bonds are held under your SRS account. SRS is a voluntary scheme where contributions can reduce your taxable income, with limits and rules set by IRAS; read the official SRS contributions guidance before you commit money there, because SRS funds are meant to stay locked until retirement age. SRS sits alongside your CPF as a retirement tool, and the CPF Board explains how the two fit together.
The application window for each issue opens at 6pm on the first business day of the month and closes at 9pm on the fourth-last business day. If demand is higher than supply, MAS allots the bonds and refunds any excess. The full timeline is on the how to buy page.
How redemption works and why there is no penalty
You can redeem an SSB in any month before it matures, and you get your principal plus any accrued interest with no penalty for leaving early. That is the flexibility that fixed deposits do not give you.
The redemption window opens on the first business day of the month and closes on the fourth-last business day. Submit a request in, say, May, and you receive the money by the second business day of June. If a bond is reaching its 10-year maturity, you do not need to do anything. The principal and final interest payment are credited to your bank or SRS account automatically. The mechanics are set out on the how to redeem page.
One thing to plan around: because the rate steps up, redeeming in year one or two means you only earn the lower early-year rates. The full benefit shows up when you hold for the long term. So treat SSBs as a home for money you can leave alone, while keeping cash you might need this month in a regular savings account.
Where SSBs fit in a young Singaporean's money
SSBs are not your first move. Before you buy any bond, you want a cash buffer you can reach instantly. Building that is the job of an emergency fund, and our guide on how to build an emergency fund as a fresh graduate walks through how much to set aside first.
Once that buffer exists, an SSB is a sensible place for the next slice of savings: money you want safe and earning more than a basic account, without locking it up. It is lower risk and lower return than equities. If you are weighing SSBs against the stock market and trying to understand risk, returns, and time horizon, read how to start investing as a student in Singapore for how the pieces fit together.
A simple order for most people in their 20s: build the emergency fund, park safe medium-term savings in SSBs, then invest the rest you will not touch for years into a diversified low-cost fund. None of this is a recommendation to buy any specific product. It is the structure that keeps you from taking risk with money you cannot afford to lose.
Frequently asked questions
Can I lose money on a Singapore Savings Bond?
No. SSBs are fully backed by the Singapore Government and you always get your full investment amount back, with no capital loss, according to MAS. The only thing you give up by redeeming early is the higher interest you would have earned by holding longer.
What is the minimum amount to buy a Singapore Savings Bond?
The minimum is S$500 per bond, and you invest in multiples of S$500. The maximum any individual can hold across all SSBs is S$200,000. These limits are set by MAS.
How is the interest rate decided each month?
MAS sets the coupon rates for each monthly issue so the average annual compounded return over a holding period is linked to the yield of Singapore Government Securities of the same tenor, with the rates designed to step up over the years. The exact rates differ for every issue, so check the current figure on the official MAS Savings Bonds page rather than an old number.
What happens if I need my money before 10 years?
You can redeem in any month before maturity and receive your principal plus accrued interest, with no penalty. Submit the request within the monthly redemption window and the money reaches your account by the second business day of the following month.
Should I use cash or SRS to buy?
Cash investments go through your CDP account and stay accessible. SRS investments may lower your taxable income but the funds are meant to remain in your SRS account until retirement, with rules set by IRAS. For most young readers without an SRS account, the cash route through CDP is the simpler start.
If you want help thinking through where investing fits alongside your career and first salary, FINternship is a free six-week mentor-led programme for Singaporeans aged 18 to 28. You can apply here or read more about the masterclass to see whether it is a fit. Treat this article as education, not financial advice, and verify every figure on the official MAS pages before you invest.