MAS and the Government will introduce Singapore Savings Bonds in the second half of 2015 to give individual investors more options to save for the long term. Savings Bonds are a new type of Singapore Government Securities (SGS), with features that make them accessible and suitable for individuals.

  • Savings Bonds are principal guaranteed. Investors can always get their full investment amount back and will not suffer capital losses. Compared to conventional SGS and corporate bonds whose prices are affected by factors such as interest rate changes, Savings Bonds are easier to understand, especially for those who are new to investing.
  • Savings Bonds have a term of 10 years and pay interest that is linked to SGS market rates. Bondholders earn a higher return the longer they hold their bonds. This allows individuals to save for the long term and receive a term premium.
  • Investors can redeem their Savings Bonds monthly, so there is no need to decide upfront how long they wish to hold the bonds. Savings Bonds will also be issued every month and in denominations of S$500. This makes them accessible on a regular basis to individuals with smaller investment amounts.

Savings Bonds can be a useful instrument to meet different financial needs. Retirees and those nearing retirement will find this a safe and flexible option to maintain their savings; other investors can set aside money in Savings Bonds for "rainy days" and earn a regular income while doing so, or use Savings Bonds to manage risks as part of a balanced investment portfolio. MAS hopes that the Savings Bonds programme will benefit many individuals.