How to sell sgs
What Is SGS And T-Bills? | Step By Step Tutorial
0:00 / 0:00
Timecodes:
hi guys welcome back to my channel tell
me here so recently SSP has become a Hot
Topic maybe it's due to the high you
maybe it's due to everyone talking about
it whatever the case SSB is definitely
getting super popular now but did you
know that besides SSB there are also two
more types of government bonds that you
can buy and that is Singapore government
securities and treasury bills so the
question is SSB SGS or tbus which is
better
foreign
because there can only be one winner in
this video I will compare between the
three types of bonds to show you what
are the differences between the three
then if you do decide to get them I will
also give a quick step-by-step guide on
how to buy them as usual before I start
I would greatly appreciate it if you can
have to tap the like button and
subscribe if you haven't done so in
return I will show you a bunch of
kittens in a box alright let's start
right now all three bonds are fully
backed by the Singapore government and
the government has received Triple A
ratings from multiple credit rating
agencies so if you put in a thousand
dollars after the bond matches you will
expect to get back a thousand dollars
plus whatever interest that you have
earned in other words your money is
super safe yeah unless there's Google
through or Singapore gets invited then
there's a different story all together
okay I will introduce the three bonds
starting with SSB most of us are already
familiar with SSB a bond that matches in
10 years SSB let's invest as little as
500 up to a maximum of 200k interest is
paid out every six months however the
yield is different every year like for
this SSB the interest starts at 2.6
percent then it slowly goes up to 2.99
the special thing about SSB is you can
redeem and get back the money anytime
with no penalty at all the only fee that
you have to pay is just a two dollar
transaction fee so that's SSB but not
many people know that SSB interest rates
actually come from SGS so let's talk
about SGS next similar to SSB SGS is
issued every month but each issue left
different years to maturity where it can
range anywhere from two years all the
way to 50 years each issue will have
different objectives the most common one
is Market development where it's being
used to develop the domestic debt Market
infrastructure where it's been used to
finance infrastructure projects and a
recently launched green SGS which is
being used to finance green
infrastructure projects so for example
for the upcoming issue it's a 30-year
fgs which is being used to finance
infrastructure projects for SGS the
minimum investment amount is a thousand
dollars as for the maximum technically
there's a limit to how much you can
apply but the limit is usually super
duper high like for the August issue the
amount allotted is 3 billion dollars so
most people won't be able to Max it out
unless you are a rich Saudi Prince
similar to SSB SGS interest is paid out
every 6 months but there are a few
differences first that you is fixed
throughout the entire period so for
example if you got it at a three percent
you every year you'll keep receiving a
three percent yield second unlike SSB
you can't redeem SGS before it matches
if you still want to get back your money
can if 10 you will need to sell it on
the open market check this out trading
volume is mostly zero meaning that's
basically no one trading SGS and the big
ass spread is very wide meaning if you
do decide to sell chances are you will
get low ball like what usually happens
on Carousel third while SSV only lets
you invest while your cash and SRS for
SGS you can also invest using cpf so
that's good as for how sscb youth are
related to SGS basically they take the
SGS two-year 5-year and 10-year previous
month use but in this super complicated
formula then boom they come out with SSB
use if you are interested to know more
you can check out this video here so
that's as you
asked you the next bond is called T
bills or treasury bills 1K minimum
investment able to buy cash SRS and cpf
and there's no early Redemption then
you'll be like is it just me or is t-bus
similar to SGS yes it's not just your
imagination tbus is basically just SGS
but a short-term version of it where the
maturity is either 6 months or one year
so then why did they decide to make a
different version is it because there is
food nothing better to do Yes actually
just kidding there's a reason for that
the biggest difference is that for tbus
there's no interest payments instead of
interest payments the bond is issued to
you at a discount for example if the
yield is two percent and you are
investing one thousand dollars what
happens is that after you successfully
get your bond they will give you back
two percent or twenty dollars then and
upon maturity you'll get back the face
value or in this case you will get back
a thousand dollars so that's the
difference between tbus and SGS while
fgs pays you interest every six months
tbus pays you interest by giving you a
discount at the start then returning the
face value back to you at the end mes
has this super useful table that
summarizes everything that I mentioned
just now I will link it down in the
description for you to check it out in
summary SGS is a long-term Bond tbu
short-term Bond and SSB is basically a
beginner friendly version of both bonds
quick pause here's a quick message from
today's sponsor reboot if you trade
options frequently you'll be glad to
know that reboot has added stock order
and stop limit order so that you can
protect your downside while trading
options also they have just upgraded
their sign out rewards even more this
time is 130 dollars worth of free
teslash yes and a free grab voucher
worth ten dollars all you need to do is
deposit at least 2 000 SGD into reboot
make one byte trade on an US Stock or
ETF make another Buy trade on one US
option while maintaining 2000 SGD net
account value for that 30 days and you
will receive all your free rewards so if
you are interested you can sign up with
my link down below with that being said
let's get back to the video so which
should you invest in for most people SSV
is the best choice the 500 minimum
amount means that even if you don't have
a lot of money you can still invest in
SSB SSB also lets you redeem anytime you
want with totally no penalty at all so
technically you can park some of your
Series in SSB to earn a higher interest
and if you need the money you can just
redeem and get back the money within one
month that's because if you apply
anytime from the first business day a to
the fourth plus business day of the
month you will gather the money by the
second business day of the following
month so then when is tbu or SGS better
here are a few reasons as to when they
are better first unlimited investment
amount for SSP you can only invest up to
200k and you can't invest anything more
than that each issue has a limited
amount so you'll be competing with other
people to get it if the demand is too
high everyone will end up getting a
smaller amount for example for the
previous month issue the limit is 13k
some lucky ones got 13.5 K anything more
than that will be refunded back to you
on the other hand for T bills and SGS
because the limit is so high it's almost
impossible to reach it this means if you
want to invest a lot of money t-bus and
SGS would be more suitable for you
second purpose for investing yes yes I
know that the purpose is to earn money
but as to why you should choose between
them the answer is quite simple when do
you need the money trustee bills if you
need the money back within 6 months or
one year a use case of this is maybe yes
saving money to buy a house next year
you can't invest the money because you
might lose it in a market crash at the
same time putting the money in the bank
is a bad idea because the interest is
super low hence the best way is to
pocket in something short term like tbus
or SSB only go for SGS if you donate the
money in the next 2 to 50 years because
once you have the bonds you will keep
receiving a steady pump BP interest all
the way to maturity only downside is
that if you decide to get back your
money you might be forced to sell at a
loss so that's how to decide which bonds
to invest in if you want to to buy SSB
you can check out this tutorial on how
to do that for this video I will show
you how to buy SGS and tbus to start you
will need to be at least 18 years old
because that's the minimum age to apply
for a CDP account after applying you can
expect approval within 10 business days
after that you can apply through DBS
posb or ocbc or UB ATMs or Internet
banking if you do decide to buy with cpf
money you will need to submit an
application in person at the bank's
physical Branch so it's a bit
Troublesome yeah as to when you can
apply you will need to check the
insurance calendar for the dates okay
let me just quickly show you how to
apply wire internet banking if you're
using posb go to invest Singapore
government securities to St Bill to
apply for TBO or choose bond to apply
for SGS Bond choose the bond then next
choose your nationality whether you want
to pay by cash or SRS then fill in your
CDP account number here you will see
competitive or non-competitive bid
basically think of it like limit order
versus Market order if you have a yield
that you want go for competitive bid but
for most people just choose
non-competitive bid and the in the
amount that you want you can only apply
a multiples of a thousand so let's try
one thousand dollars choose your account
there will be two dollar service charge
once everything is okay click next check
everything is alright then submit next
if you are using UOB it's also super
easy on the left side go to investment
click IPO bonds tubules choose SGS Bond
or TBO depending on which you want to
apply click Transit then just fill in
your info here finally for ocbc go to
Investments and insurance click
Singapore government securities then
choose either SGS bonds or tbus then
fill in the info as per normal after
applying if you want to check whether
you are successful or not 40 bills after
the market closes you will receive a
discount refund back to your bank
account then a few days later you'll be
able to see the result via your CDP
account so that's how to buy SGS and
tbus hopefully you find this video
useful like share and subscribe as I'll
be posting new videos every Monday
Wednesday and Friday
