Thursday, 26 April 2018

SSB (May 2018) Subscribed by 2.6 times

(EDITED 28/04/2018: SSB (May 2018) Subscribed by 2.6 times, instead of oversubscribed by 260%. I'm terribly sorry for any unintended confusion caused and kindly pardon me for the mistake.)

Today is the day MAS releases the result of the SSB allotment for May 2018 SSB.

MAS has raised the issuance size from S$150 million to S$200 million earlier this month, in response to the higher demand for SSB.

The first time SSB is oversubscribed is during the 1.55% January 2018 SSB issue, which it was briefly oversubscribed by S$22 million. This was the best interest offered by SSB till this month's tranche.

The second time happened last month when it was oversubscribed by S$111 million, which is when MAS decided to increase the issuance size to S$200 million.

Now, today, for May 2018's SSB issue, it is oversubscribed by S$321 million or 160%!!

Take a look!
Source: SSB
Seems like finally, SSB is getting some support from the public!

Indeed, I felt that the interest rates offered by May's tranche are really attractive at 1.65% for the first year and 2.39% average return per year if you plan to hold it for the full 10 years.

For applicants that applied for SGD 13,000 or lower, congratulations. You're fully allotted.
Those who applied for more than SGD 13,500 were allotted either SGD 13,000 or 13,500 randomly.

Meaning to say, the most one can get from this tranche is SGD 13,500. For those who applied for more than SGD 13,500, you may wish to take a look at your bank account to check for the refunds posted.

Source: SSB - May 2018 Issue Interest Rate

Similar to January's issue, I've gotten myself $500 worth of SSB for May 2018's tranche using the funds in my opportunity funds.

Regular readers would remember what my 'opportunity funds' here is for.

To those newer readers, here's a small recap of my post back in December 2017:

The 19-Year-Old Year Review, Reflection & 2018 Resolution

As my 'additional war chest' that I've included in my portfolio updates only has $850.00, I've decided to only subscribe for $500, leaving $350 in that account.

It would be really strange, why did I not top up another $150 to make it a thousand instead, as such 'guaranteed' high rates do not come by so frequently in SSB!

Silly me!

$500 in May 2018's SSB will mean that I will be receiving $4.12 in November and another $4.12 in May 2019.

This will also mean that I'm getting 2 free Fillet-O-Fish burger every half a year! Ala-carte burger only. No meal this time round!

On a side note, I'm really glad that I finally manage to convince my mother into applying for some SSB this month, instead of the 0.05% interest POSB account that she is holding onto.

As an extremely risk adverse person, probably it's time that her money will start working a little harder for her.

I will continue to look out for the upcoming SSB for further opportunities to park my opportunity funds. Remember. Opportunity funds!

Read: Singapore Saving Bonds (SSB) - 1.65% (May 2018)

Link to MAS's announcement can be found here.

You may also subscribe to receive my latest email updates here


  1. Yay! I applied $500 too, high five!

    1. High-Five!! We're definitely allocated hehe! Seems like you're building up a bond ladder using SSB.. hmmmmmm...

  2. What is your rational of getting $500 in SSB

    1. Hi Kyith,

      Once again, honoured to have you here. As much as I wish to have a certain fraction of my holdings in cash, it would be ideal if the funds here has to ability to generate me some small little dollars.

      As mentioned in one of my earlier post, I've decided to establish a separate war chest which I'd name it opportunity funds. This funds here will only deployed in a big financial events where stocks are undergoing GSS, while I still keep my regular warchest ready to purchase some shares when I feel that they're undervalued.

      Perhaps, it's due to my mental accounting bias, which explains why I choose to complicate things and have several different accounts for similar purposes.

      Unfortunately, this opportunity funds here does not exceed $1,000 in value, hence, I'm not able to apply for a bigger position in this tranche of SSB despite the slightly attractive interest offered.

      For now, I'm trying to channel more money into the opportunity funds, and hope that they will come in handy in some days :)

      Hope that answers your question!

      On a side note, I really enjoy your blog and has been a silent reader for a very long time. Hoping to see and learn more things from you in your upcoming post :)

    2. Thanks for explaining. Aiyo, what honor. I try to read as much of you guys stuff as you can. The mental account is ok. I started off doing that as well. I think in my brain its always the low volatile predictable low effort things, and those that i need to actively control. So it could be cash, SSB or some low vol reits. I think it might be cool if sometimes you give a summary of how they add up to the big picture for yourself. no obligations to show it out.

    3. Hi Kyith,

      Thank you for the advise! You're right. I should soon write more about this. As I'm having this accounting bias, it makes it harder for one to understand why the reason for having so many accounts and definitely how are all of these working for me.

      This will also help me to pan out and identify more room for improvement. Do drop by more often! :)

      Apart from your numerous wonderful blog post that I'm learning from, I believe your pointers will serve as a booster for newbies like me!

      Looking forward to learn more from you! :)

    4. i will try to drop by often

  3. Shouldn't it be oversubscribed by 160% instead?

    1. Hi I,

      Thank you for highlighting, as well to another reader which have sent in an email with regards to this. I'm sorry for any unintended confusion caused. The post has been corrected to 'SSB (May 2018) subscribed by 2.6 times' to avoid any further unnecessary confusion.

      Kindly pardon me for the mistake.

  4. I got a similar story like yours. I subscribed to $3k but I failed to convince my mother to do the same. When I told my friends about it, they said it was good but they never got started. They continue to receive 0.05% interest.


    1. Hi K,

      I have been trying to persuade my mother onto putting some of her savings into SSB to gain a better interest to no success until this month.

      It took me close to a year for that to materialize. However, as someone that will not feel comfortable with cash taken away, I guess it's better not to get too involved with their money matters unless guaranteed :)

      I feel you. I do have friends on my hand which I've told them about the SSB, but prefers the 0.05% interest as well. Or better, prefer their ILPs or Robo Advisor :)