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You'll enjoy:

• Timely payment of interest on the bond and the principal payment on maturity as SGS are guaranteed by the Singapore Government
• A safe and secure alternative to stocks or equities
• Diversification of your investment portfolio
• Opportunities for capital gains when prices of securities rise in response to a fall in interest rates. (Conversely, there may be capital losses if interest rates rise)
• Liquidity as SGS can be readily sold for cash before their maturity date
  

Singapore Government Securities or SGS come in two forms:

Treasury Bills

• They are short-term securities with original maturities of 3 and 12 months
• They are issued at a discount from the face value and redeemed at the full face value upon maturity. The return on your investment is therefore the difference between the purchase price and the face value of the Treasury Bill, i.e. the discount given
  

Government Bonds

• They are longer-term securities with original maturities of 2, 5, 7, 10 and 15 years
• They pay a fixed interest rate (coupon) every six months for the entire life of the securities
• The coupon or interest rate is guaranteed for the entire life of the bond, thus assuring the investor of a steady source of income
  

Here are other features of SGS:

• On maturity, the full face (par) value of the Government Bond and Treasury Bill is paid to the investor
  
• Taxation for residents:
  • Interest and discount derived from SGS on or after 1st January 2004 by a resident individual, except where such income is derived through a partnership in Singapore or derived from the carrying on of a trade, business or profession, is exempt from tax.
  • Interest and discount derived from any SGS by any company or body of persons is subject to Singapore tax at a concessionary rate of 10%.
• Taxation for non-residents:
  • Interest and discount payable to non-residents (without any permanent establishment in Singapore) on Qualifying Debt Securities, which include SGS issued during the period from 28 Feb 1998 to 31 December 2008, is exempted from withholding tax. For non-residents with permanent establishments in Singapore, the withholding tax exemption is subject to the conditions that the debt securities are issued during the period from 27 February 1999 to 31 December 2008 and are not purchased using funds from Singapore operations.
• Capital gains:
  • Capital gains are not taxed in Singapore
• Custody:
  • The scripless SGS will be credited to your Debt Securities account opened with UOB
  • Regular statement of your SGS holdings will be mailed to you

What are the requirements?

• You must be at least 21 years old
• There are no restrictions on foreign investors
• A minimum investment sum of S$1,000
• Cash can be used to purchase both Government Bonds and Treasury Bills. You need to open a Debt Securities account with UOB
• Funds from Central Provident Fund (CPF), Academic Staff Provident Fund (ASPF) and Supplementary Retirement Scheme (SRS) account can be used to purchase Government bonds and Treasury Bills. In order to transact, you need to open a CPF Investment Account /ASPF Investment Account /SRS Account with UOB or any other agent bank
• You may either buy SGS from us directly or participate in the auction of new SGS issues by submitting your bid to us on a prescribed tender form which is available on request.

How much does it cost?

• No commission or custody fee for transactions

How do I apply?

• Visit any UOB Group Branch
  

Where can I get more information?

• For a no-obligation consultation today, please contact our customer service officer at 1800 222 2121 (24-hour, toll-free)
• Email us