Introduction
Singapore Savings Bonds (SSBs) are a popular investment option for Singaporeans looking for a safe and steady return. They offer a guaranteed return, and the interest is tax-free. However, SSBs are not redeemable until the maturity date, which can be up to 10 years.
If you need to redeem your SSBs before the maturity date, there are a few things you need to know.
How to Redeem Singapore Savings Bond
Step 1: Check the Redemption Price
The redemption price of your SSB is the amount of money you will receive back when you redeem it. The redemption price is based on the current interest rate, and it changes every six months.
You can check the current redemption price of your SSB by visiting the SSB website or by calling the SSB hotline at 1800-226-1188.
Step 2: Fill Out the Redemption Form
Once you have checked the redemption price, you need to fill out the redemption form. The redemption form is available on the SSB website or at any DBS/POSB branch.
You will need to provide the following information on the redemption form:
- Your name
- Your NRIC number
- Your SSB account number
- The amount of SSBs you want to redeem
- The redemption date
Step 3: Submit the Redemption Form
You can submit the redemption form by mail or in person at any DBS/POSB branch.
If you are submitting the redemption form by mail, send it to the following address:
DBS Bank Ltd
SSB Redemption Department
2 Shenton Way
Singapore 068804
Step 4: Receive Your Payment
The redemption proceeds will be credited to your DBS/POSB account on the redemption date.
Early Redemption Penalties
If you redeem your SSBs before the maturity date, you will be charged an early redemption penalty. The early redemption penalty is calculated as a percentage of the redemption value of your SSBs.
The early redemption penalty varies depending on the length of time you have held your SSBs. The following table shows the early redemption penalties for SSBs redeemed before the maturity date:
| Holding Period | Early Redemption Penalty |
|---|---|
| Less than 1 year | 1.5% |
| 1 year to less than 2 years | 1.0% |
| 2 years to less than 3 years | 0.5% |
| 3 years or more | No penalty |
Why Redeem Singapore Savings Bonds Early?
There are a few reasons why you might need to redeem your SSBs before the maturity date. Some of the most common reasons include:
- You need the money for an emergency
- You have found a better investment opportunity
- You are moving out of Singapore
If you are considering redeeming your SSBs early, you should be aware of the early redemption penalty. The early redemption penalty can reduce the amount of money you receive back when you redeem your SSBs.
Benefits of Redeeming Singapore Savings Bonds Early
There are a few benefits to redeeming your SSBs early. Some of the most common benefits include:
- You can get access to your money sooner.
- You can avoid the early redemption penalty if you redeem your SSBs after 3 years.
- You can invest the redemption proceeds in a higher-yielding investment.
How to Decide Whether to Redeem Singapore Savings Bonds Early
The decision of whether or not to redeem your SSBs early is a personal one. You should weigh the benefits and risks of early redemption before making a decision.
If you need the money for an emergency or you have found a better investment opportunity, then redeeming your SSBs early may be the right decision for you. However, if you are not sure whether or not you need the money, you may want to wait until the maturity date to redeem your SSBs.
