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How are Savings Bonds allotted? Why would I be allotted less than the amount I applied for?
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Source: https://www.mas.gov.sg- After the close of the application period, MAS’ allocation system will sum up all applications received using cash and SRS funds, check that these applications do not exceed the Individual Limit and distribute the bond to applicants.
- In a situation where total applications exceed the total issuance size, each applicant will receive at least $500 of Savings Bonds, with the amount increasing in multiples of $500 for every applicant until an applicant has received the full amount that he has applied for, or until all the available bonds have been allotted, whichever comes first. The box item on the next page provides an illustration of the allotment process (also known as the Quantity Ceiling format).
- If the number of applicants is so large that issuing $500 per applicant will exceed the total issuance size, the bonds will be allocated among applicants on a random basis, at $500 each.
- This means that, in the event a particular issue is oversubscribed, you may not get the full amount that you have applied for.
- If your combined cash and SRS application is partially filled, the order will be allocated on a first-come-first-served basis according to the time of each application.
- Example: Applicant makes three applications (1st application -$6k cash; 2nd application - $6k SRS; 3rd application - $6k cash) and was allotted $15k of SSB based on the Quantity Ceiling format. In this case, his 1st, 2nd and $3k of his 3rd application will be filled (i.e. overall, the applicant is allotted $9k of SSB from cash applications and $6k of SSB from the SRS application).
This information provided here is sourced from the MAS website.
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