Invest in Singapore Government Securities
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- Feb 6
- 3 min read
Invest in Singapore Government Securities
Here's a step-by-step guide to investing in Singapore Government Securities (SGS) bonds, T-bills, Cash Management Treasury Bills, and MAS Bills:
1. Understand the Different Types of SGS
SGS Bonds: These are medium to long-term debt securities with maturities ranging from 2 to 50 years. They pay a fixed interest rate every six months and are suitable for long-term investors seeking regular income.
T-bills: These are short-term debt securities with maturities of 6 months or 1 year. They are sold at a discount to their face value and do not pay coupons. Investors receive the full face value at maturity.
Cash Management Treasury Bills: These are very short-term debt securities with maturities of less than 6 months. They are also sold at a discount to their face value and are used by the government for cash management purposes.
MAS Bills: These are short-term debt securities issued by the Monetary Authority of Singapore (MAS) to manage liquidity in the banking system. They have maturities ranging from 2 weeks to 1 year.
2. Decide Which Type of SGS is Right for You
The type of SGS that is right for you will depend on your investment goals, risk tolerance, and time horizon.
If you are looking for a safe and stable investment with a regular income stream, SGS bonds may be a good option.
If you are looking for a short-term investment with a low risk profile, T-bills or Cash Management Treasury Bills may be a good option.
If you are looking for a very short-term investment with a high degree of liquidity, MAS Bills may be a good option.
3. Open a CDP Account
To invest in SGS, you will need to have a Central Depository (CDP) account with Direct Crediting Service activated. You can open a CDP account with any of the three local banks in Singapore: DBS, OCBC, or UOB.
4. Apply for SGS
You can apply for SGS through any of the following channels:
DBS digibank: You can apply for SGS online through DBS digibank.
OCBC Internet Banking: You can apply for SGS online through OCBC Internet Banking.
UOB Personal Internet Banking: You can apply for SGS online through UOB Personal Internet Banking.
Branches: You can also apply for SGS at any of the branches of the three local banks.
5. Make Payment
You can make payment for your SGS application using any of the following methods:
Cash: You can pay for your SGS application in cash at any of the branches of the three local banks.
CPF Investment Account: If you are a Singaporean or Permanent Resident, you can use your CPF Investment Account to pay for your SGS application.
Supplementary Retirement Scheme (SRS) Account: You can also use your SRS Account to pay for your SGS application.
6. Receive Your SGS
If your application is successful, your SGS will be credited to your CDP account. You will receive a confirmation letter from CDP with the details of your SGS holdings.
7. Manage Your SGS
You can manage your SGS holdings through any of the following channels:
CDP Internet: You can view your SGS holdings and transaction history online through CDP Internet.
CDP Phone Banking: You can also manage your SGS holdings over the phone through CDP Phone Banking.
Branches: You can also visit any of the branches of the three local banks to manage your SGS holdings.
Additional Information
You can find more information about SGS on the Monetary Authority of Singapore (MAS) website: https://eservices.mas.gov.sg/statistics/fdanet/BenchmarkPricesAndYields.aspx
You can also find information about SGS on the websites of the three local banks: DBS, OCBC, and UOB.
This is for informational purposes only. For financial advice or assistance, consult a professional.
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