Receiving Coupon and Principal Payments for SGS Bonds and T-bills
Singapore Government Securities (SGS) bonds pay a fixed coupon, or interest, semi-annually during their tenor. When SGS bonds and T-bills mature, they are redeemed at face value.
When Coupons are Paid
For SGS bonds, you will receive the coupon payment for your SGS bonds on the first day of the month, every 6 months from the bond's issue date.
In the event that the payment date falls on a public holiday, the coupon will be paid on the next business day.
SGS bonds trade ex-coupon 3 working days before the coupon date.
Note: do not pay coupons; instead, they are issued at a discount to the face (par) value. The interest is paid at maturity and is the difference between the purchase price and the face value.
How the Coupon is Paid
- If your CDP account is not linked to a bank account, the interest will be reflected under the Cash Transaction section in your CDP monthly account statement. This cash balance will be carried forward and once your CDP account has been linked to a bank account, it will be automatically credited into the bank account.
If you bought SGS bonds using Supplementary Retirement Scheme (SRS) or CPF Investment Scheme (CPFIS) funds, you will receive the payments in your SRS or CPFIS account instead.
Principal Payments at Maturity
SGS bonds and T-bills are redeemed at face (par) value when they mature.
The face value of the SGS and the last interest payment will be automatically credited to your bank account. You do not need to take any action, and there is no transaction fee.