Are you looking for an investment opportunity in Singapore that guarantees a good and predictable return? If yes, then you need to invest in Singapore government security bonds. Whether you are a first-time investor or you want to diversify your investment portfolio, investing in Singapore government bonds is a great choice that you will not regret later. For more information about Singapore government bonds, visit https://www.ocbc.com/personal-banking/investments/singapore-government-securities. In this article, we will tell you everything you need to know about Singapore government bonds.
What are Singapore government bonds?
Singapore government bond is a form of a security sold by the Singaporean government. The main purpose of this bond is to raise money for various government projects. When you buy a bond, it is like you are lending money to the Singapore government. The government will in turn pay a fixed amount of interest every year for the duration of the bond. It is one of the best investments, especially for people who are looking for a profitable and risk-free investment opportunity.
Why should you invest in Singapore government bonds?
- Predictable income
One of the greatest benefits of investing in government bonds is that you are guaranteed that you will get your money back. When you buy a bond, it is like you are lending money to the government which has never defaulted in payment. The Singapore government has been recognized several times for having the strongest credit rating by multiple international credit rating agencies. This means that you don’t have to worry that the government will default on payment as is the case with private financial institutions. Singapore government bonds provide a stable and predictable income stream, making them one of the best long and short-term investment opportunities.
- It is a great way to preserve capital
If you have money in the bank, don’t let it lie idle, instead invest it in Singapore government bonds. If you invest that money in government bonds, you are not only guaranteed of making profits but you will also get your money back once the bond matures. Investing your money on government bonds is better than putting it on saving accounts because government bonds are more predictable and also give more returns. If you hold your bond to maturity, you will get the entire principal. This makes bonds a great investment opportunity for those who want to preserve their money and earn profits from it.
- Liquidity to buy and sell any time
Singapore government bonds are highly liquid, meaning you can buy and sell at the time of your choice.
More so, when you sell your bond, you will not be charged any penalty and you will get your principal in full. The liquidity that Singapore government bonds provide makes them a great choice for people who are searching for a profitable short-term investment. Singapore government bonds can also be traded in the exchange and treasury bills.
If you want to invest in Singapore government bonds and are looking for a credible and reliable financial institution in Singapore, then look no further than OCBC bank. Anybody above the age of 18 can invest in Singapore government bonds at OCBC bank with as little as $500.