Risks

Fully backed by the Singapore Government

Your principal investment and interest payments are backed by the full faith and credit of the Singapore Government. This makes Savings Bonds one of the safest instruments you can invest in. Did you know that the Singapore Government has received the strongest “AAA” credit rating from international credit rating agencies?

What happens when interest rates change?

The prices of conventional bonds can change, depending on current market interest rates. If you invest in conventional bonds, you may receive more or less than your invested capital if you sell them before they mature. Learn about the relationship between interest rates and prices of conventional SGS and bonds through MoneySENSE.

However, you will always get your principal back when investing in Savings Bonds. Once a Savings Bond is issued, interest rate changes will have no effect on the bond’s value.

Should market interest rates rise, there is no price loss on your Savings Bond as you can get your full principal value back if you decide to redeem the bonds with the Government.

Should interest rates fall, you will not enjoy any price gains. However, you would benefit from the above-market interest rates on your Savings Bonds.

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