MARKETS & INVESTING | Staff Reporter, Singapore

MAS to allow bond investment using SRS funds in 2019

The individual limit for Singapore Savings Bonds will also be raised to $200,000.

Starting from 1 February 2019, investors will be able to purchase Singapore Savings Bonds (SSB) using their Supplementary Retirement Scheme (SRS) funds, according to an announcement by the Monetary Authority of Singapore (MAS).

Investors can submit their applications through the internet banking portals of their respective SRS operators and similar to cash applications, the minimum application amount is $500. A $2 transaction fee will also be deducted from investors’ SRS accounts for each application, MAS said.

Applications for SSB will be open from 6 p.m. on the first business day of the month and close at 9 p.m. on the fourth last business day of the month, the announcement added. MAS will then announce the overall application results, including the cut-off amount, on the third last business day of the month. Investors can view the results online.

"If you applied for an amount below or equal to the cut-off amount, you can expect to be issued the full amount of SSB that you applied for," MAS highlighted. "SRS operators will notify successful applicants when the bonds have been credited into your SRS accounts. For unsuccessful applications, SRS operators will release the earmarked SRS funds back to your accounts by the end of the second last business day of the month."

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The decision comes after public requests to allow the use of SRS funds for the purchase of SSB. Since its launch in October 2015, the SSB programme has racked in approximately $3.7b of investments from close to 100,000 individual investors, the statement highlighted. The latest move will expand the range of products available to SRS members and help them save and plan for retirement.

Additionally, MAS will double the individual limit for SSB from $100,000 to $200,000 in February 2019.

“To provide investors with a consolidated view of the SSB holdings, MAS will launch a My Savings Bonds portal in March 2019,” the agency said in statement. “The portal will allow investors to view their total SSB holdings, purchased using both cash and SRS funds.”

Investors can access the portal via the SSB website and log-in using SingPass. 

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