Investing in Singapore Savings Bond

You can hold your Singapore Savings Bonds until they mature, or you can redeem them early for up to the full amount, plus accrued interest. Unlike SGS bonds and T-bills, Savings Bonds cannot be bought or sold in the open market.

How to Redeem

When Your Bond Matures

Each Savings Bond has a term of 10 years. At the end of 10 years, your principal and the last interest payment will be automatically credited to the bank account linked to your CDP account (for cash applications), or to your SRS account (for SRS applications).

You do not need to take any action, and the $2 transaction fee does not apply.

Redeeming Early

You can redeem your Savings Bonds in any given month before the bond matures, with no penalty for exiting your investment early. 

To redeem, submit your request by the closing date through the following channels:

  • Cash investments - DBS/POSB OCBC  and UOB  internet banking or ATMs, and OCBC's mobile application.
  • SRS investments - Redemption requests for Savings Bonds purchased with SRS funds can only be made online through your SRS Operator.

Key details

Redemption period
  • Opens at 6pm on the 1st business day of the month.
  • Closes at 9pm on the 4th last business day of the month.
  • Operating hours: 7am to 9pm, Monday to Saturday (excluding Public Holidays).
Redemption amount

Redeem in multiples of $500 up to the amount you have invested for each bond. You can redeem more than one bond per month.

Fees $2 transaction fee by the bank for each redemption request.

Please note that you will not be able to amend or cancel submitted redemption requests.

After You Submit Your Request

You will receive the amount you requested in full, along with any accrued interest, by the 2nd business day of the following month
  • For cash investments, the money will be credited as a single amount to the designated bank account that is linked to your individual CDP Securities account.
  • For SRS investments, the money will be credited to your SRS account.

How Much Interest Will You Receive?

Savings Bonds pay interest every 6 months. If you redeem your bond when there is a scheduled interest payment, you will receive the scheduled interest together with your redemption amount.

If you redeem before the scheduled interest is paid, you will receive a pro-rated amount, called the accrued interest, which is the interest you have earned but have not been paid.

Calculate accrued interest

Example - How Accrued Interest Works

Suppose you bought $1,000 of Savings Bonds issued in January that is scheduled to make an interest payment of $6 in July.

If you submit a request in June to redeem the full $1,000 of your January bond, you will receive by the end of the 2nd business day of July:

  • Your redemption amount of $1,000.
  • Your scheduled interest payment of $6.

However, if you decide to redeem in March instead, you will receive by the end of the 2nd business day of April:

  • Your redemption amount of $1,000.
  • Three months' worth of accrued interest (Jan to Mar), which is about $3.

The actual amount of accrued interest paid out on each redemption date is calculated as follows:

Accrued interest formula