Letters to Editor
Published Date: 12 May 2023

Response to Letter "Singapore Savings Bonds – Look at raising the individual limit of $200,000" – The Straits Times, 5 May 2023

We thank Mr Goh Yong Chua for his suggestion of 5 May 2023 that the Monetary Authority of Singapore (MAS) raise the individual limit of $200,000 for the Singapore Savings Bond (SSB) programme.

2   The SSB programme was launched to promote greater participation in the Singapore Government Securities (SGS) market for individuals who lacked familiarity with SGS, and to encourage them to save and invest to meet their long-term financial goals. SSBs allow bond holders to earn a higher interest the longer the bonds are held, and yet get their money back in any given month with no penalty. 

3   MAS set the individual limit to ensure that more individuals have access to SSBs, and for SSBs to complement other savings and investment options as part of a diversified portfolio. The individual limit was raised in 2019, from $100,000 to the current limit of $200,000, alongside the introduction of the use of Supplementary Retirement Scheme (SRS) funds to invest in SSBs. As at 2 May 2023, just 4.2% of investors hold more than $180,000 worth of SSBs.

4   Investors that have reached the $200,000 limit may wish to consider other products such as Treasury Bills or SGS bonds. These products offer a variety of maturities for purposes of portfolio diversification and have significantly higher investment limits than SSBs.   

Dawn Chew
Director (Corporate Communications)
Monetary Authority of Singapore