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What happens to the value of my Savings Bonds when market interest rates change?
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Source: https://www.mas.gov.sg- Once a Savings Bond is issued, changes in the interest rate environment will have no effect on the bond’s value. Unlike conventional bonds whose values fluctuate with interest rate movements, Savings Bonds are always redeemable at the amount originally invested with no capital losses.
- Future interest rate levels could turn out to be higher (or lower) than the interest rates you receive from your Savings Bond holdings. You have the option to redeem your Savings Bond for the original invested capital with no penalty, and apply for new Savings Bond issues with higher interest rates, if you find that the latter is more attractive. Before you do this, you should consider whether a new Savings Bond with lower initial interest payments outweighs the stepped-up coupons you will be receiving on an existing Savings Bond that you may have held for some years.
This information provided here is sourced from the MAS website.
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