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The Singapore saving bonds may not be the best investment that an individual makes for enhancing his income, but it has become increasingly popular since 2015 and is gaining more and more attention and popularity every day. The SSB bond is allocated by the Singapore government each month through MAS, i.e. Monetary Authority of Singapore. This was primarily offered to the people in 2015, October. The SSBs have a maximum cycle of ten years, further rewarding the investor with an incremental interest over the years. Anyone can invest, i.e. both locals and foreigners. When buying the SSBs you must invest in multiples of $500 and you can acquire up to $2, 00,000 worth of SSBs. Here, for each application, a transaction fee of $2 will be censured.
Now, similarly, when you divest instead of invest, you divest in the multiples of $500 only. SSBs are flexible, and therefore we can restore our SSBs investment anytime and in any month without facing any penalties. The interest returns will be received by you every six months on the very first business day of the month and if you make zero or no redemptions, the last interest payment and principal will be credited to your account, which is associated with the CDP account, after the maturity period of ten years. In addition, the SSBs provide interest payments free of tax and the interest rates level up each year.
How Much Money Can You Save Every Month?
Do you wonder how much can you realistically save per month? Whenever this type of question arises, most people ask about your goals of saving, as your saving will directly reflect your future life. Only earning and spending are not enough, you must build a strategy to save as well for a supported future. To save yourself from crises in the future, you need to start working today itself. Your future depends on what you do in your present and what you did in your past. Saving monthly seems to be the best and easiest option to go for. The final goal of long-term saving is for retirement. When a person is saving from the very start, it will ultimately help him in his retirement period. Now let us arrive at your goal by breaking it down into various parts.
- Retirement – you should contemplate saving at least 15-20% of your monthly income for your retirement. Several online tools are there today that will help you evaluate your needs for retirement and other monetary goals.
- Emergencies – life is seemingly unpredictable and there are many possibilities that you may have to face a crisis anytime, therefore you should be prepared for it beforehand. Therefore, you should consider monthly income and expenses and then work out things. Speculate that you lose your job, you will give up all luxuries and amenities, and then how much do you need to have to live your life? Slice the number in half and see if you can save that monthly. If yes, then you will reach up to the six months emergency amount within the next year.
For emergency savings and others, you have the best savings accounts in Singapore. Even the finest of people with a lot of wealth suffer from a money crisis at least once in their life. Hence, it is important to have emergency savings for that unpredictable future.
It would be in your best interest to look forward to making a prudent decision when saving money on different schemes. Your savings would help you make the most of your emergency needs, as and when the time arises.
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