SSB

Singapore T-Bill Demand Is Cooling: What Falling Bid-to-Cover Ratios Mean for Investors

By TY → Sunday, September 6, 2026

Singapore T-Bill Demand Is Cooling: What Falling Bid-to-Cover Ratios Mean for Investors

Meta description: Singapore T-bill bid-to-cover ratio fell to 2.00 in the July auction. Read what cooling demand means for allotment, SSB, and your 2026 bond strategy.

For anyone tracking Singapore T-bill demand, the July 2026 auction sent a subtle but important signal. The 6-month T-bill (BS26113X) was oversubscribed again, but the bid-to-cover ratio dropped to 2.00, down from 2.36 just two weeks earlier. In plain terms: there is roughly S$2 of bids for every S$1 of T-bills on offer — healthy, but noticeably cooler than the frenzy of recent years. For Singapore investors building a fixed-income ladder, understanding that number is worth more than chasing the headline cut-off yield of 1.50% p.a. This guide breaks down what falling demand actually means, how it changes your allotment odds, and how to position for the auctions ahead.

Disclaimer: This article is for general information only and is not financial advice. Please do your own research or consult a licensed adviser before making investment decisions.

Cooling Singapore T-bill Demand: Reading the July 2026 Auction

The Monetary Authority of Singapore (MAS) auctioned S$8.7 billion of 6-month T-bills on 2 July 2026 (issue BS26113X) and received applications totalling S$17.4 billion. That is a bid-to-cover ratio of 2.00 — down from 2.36 for the previous issue (BS26112T) on 18 June 2026.

What the numbers tell us

• Cut-off yield: 1.50% p.a., up from 1.47% in the previous 6-month issue — a gentle continuation of the 2026 uptrend from February's 1.36%.
• Cut-off price: S$99.252 per S$100, reflecting the discounted issuance structure of T-bills.
• Median yield: 1.45% p.a.; average yield: 1.38% p.a. These sit below the cut-off, as usual.
• Allotment: Non-competitive applicants received 100% of what they asked for, while competitive bids at the 1.50% cut-off got roughly 45.46% allotted.

Falling from 2.36 to 2.00 bid-to-cover is not a red flag — anything above 1.0 means the issue is fully subscribed and the government can price at the competitive margin. Rather, it signals that the surge of yield-chasing money seen during the high-rate spike of 2023–2024 has begun to normalise. That is precisely why a closer look at the auction mechanics matters now.

Why a Lower Bid-to-Cover Ratio Is Good News for Small Investors

The immediate temptation when an auction is oversubscribed is to bid aggressively at the cut-off and hope for allotment. But the bid-to-cover ratio directly affects your probability of being filled, and a cooling ratio often helps the retail investor.

Better odds for non-competitive bids

Non-competitive applications — where you accept whatever cut-off yield is set — are filled first and received 100% allotment in the July 2026 auction. Because total demand relative to supply has eased, the competition for remaining T-bills is less fierce. In periods of extreme oversubscription (ratios of 4x or higher during the 2023 peak), non-competitive allotment could still be scaled down in some tenors; at 2.00, retail bidders are far more likely to get their full allocation.

A more predictable cut-off

When demand balloons, cut-off yields can be pushed down as competitive bidders accept lower rates just to get filled — a phenomenon many Singapore investors learned the hard way in 2023. Cooling demand reduces this "bid-to-win" behaviour and keeps the yield closer to what the market genuinely wants. That is why the 1.50% cut-off in July is arguably more sustainable than a spike fuelled purely by oversubscription.

Competition Is Moving to Singapore Savings Bonds

While T-bill demand cools, an interesting counter-signal is visible in the Singapore Savings Bond (SSB) market. The SBAUG26 issue — 10-year average return of 2.06% p.a., with interest stepping up from 1.46% in Year 1 to 2.72% by Year 10 — was announced on 1 July 2026. Earlier, SBJUL26 was actually under-subscribed, which is rare for SSBs.

Why investors are diversifying

T-bills lock you in for a single tenor of six months to one year. SSBs, by contrast, offer a 10-year term with a step-up structure, full backing by the Singapore Government (AAA-rated), monthly redemption with no penalty, and tax-exempt interest. When T-bill yields plateau around 1.50%, the appeal of locking in a ladder that averages over 2% across a decade — while keeping the freedom to redeem anytime — grows stronger. As my earlier T-bill vs SSB vs SGS bonds comparison explains, each instrument suits a different liquidity need.

The fixed-income staircase opportunity

With SBJUL26 under-subscribed and SBAUG26 offering 2.06% averages, there is a window to accumulate SSB rungs without intense competition. Investors holding existing SSB rungs already know the mechanics: minimum S$500 per application, maximum S$200,000 per individual, available via both cash and SRS. For a detailed playbook on layering rungs, see my Singapore Savings Bond staircase guide.

Positioning Your T-Bill and SSB Strategy for the Rest of 2026

Cooling demand changes the tactical picture. Here is how to think about the remainder of 2026 rather than chasing a single auction.

1. Lean on non-competitive applications

Given the 100% non-competitive allotment observed in July, submitting a non-competitive bid for a 6-month T-bill is the lowest-friction way to secure near-market yield without guessing the cut-off. You accept the median clearing rate, but you remove allotment uncertainty.

2. Consider a T-bill and SSB ladder

Keep short-term liquidity in T-bills (1.50% area, maturing every few months) while anchoring longer-term core savings in SSB rungs averaging 2%+. The combination gives you rolling liquidity plus protection if yields rise further — because newer SSB rungs are repriced monthly against prevailing SGS yields.

3. Watch the next auctions

The next 6-month T-bill auction (BS26114W) is scheduled for 16 July 2026, and the following SSB (SBSEP26) is projected to carry an even higher 10-year average return than SBAUG26's 2.06%. If demand continues to cool, sharp investors who apply early and in reasonable size may find themselves in a better bargaining position than at any point since 2023. You can track both schedules on the official MAS auctions calendar.

4. Don't forget CPF OA and SRS

T-bills can be funded from CPF Ordinary Account (OA) and SRS balances, while SSBs are available for both cash and SRS. Parking idle SRS cash in a T-bill or SSB rung avoids leaving it in a low-interest sweep account — a small optimisation that compounds over time.

Frequently Asked Questions

Is a falling bid-to-cover ratio a bad sign for Singapore T-bills?

Generally no. A ratio above 1.0 still means the auction is fully subscribed. Falling from 2.36 to 2.00 simply indicates demand has normalised after the 2023–24 rate spike. It often improves retail allotment odds and keeps cut-off yields closer to genuine market-clearing levels.

What does 45.46% allotment at the cut-off mean?

In the July BS26113X auction, competitive bids placed exactly at the 1.50% cut-off were only partially filled — about 45.46% of them received T-bills. This is why non-competitive bids, which get filled first at 100%, are often the safer route for retail investors.

Should I switch from T-bills to Singapore Savings Bonds now?

Not necessarily switch — consider holding both. T-bills offer short tenors and rollover flexibility around 1.50%, while SSBs like SBAUG26 lock in a 2.06% 10-year average with penalty-free monthly redemption. A ladder of both gives you liquidity plus yield.

How much can I invest in SSBs?

Minimum S$500 and maximum S$200,000 per individual, per the MAS. Interest is tax-exempt and fully backed by the Singapore Government. Applications can be funded by cash or SRS.

When are the next auctions in 2026?

The next 6-month T-bill auction (BS26114W) is scheduled for 16 July 2026, with new SSBs typically issued monthly. Check the MAS auctions and issuance calendar for the full SGS schedule.

Bottom Line: Ride the Normalisation, Don't Fight It

Cooling Singapore T-bill demand is not a reason to sit out — it is a reason to be smarter. With the bid-to-cover ratio settling near 2.00, non-competitive bids are filling at 100%, and fixed-income yields remain attractive relative to the historic lows of the 2010s. Use the July auction data as a guide: keep your short-term cash rolling in T-bills near 1.50%, and start anchoring a longer-dated SSB staircase while the SBJUL26 under-subscription window and projected SBSEP26 gains are still in your favour. Track the MAS calendar, apply early, and let normalising demand work for you instead of against you.

Ready to build your ladder? Revisit the Singapore T-bill yields strategy guide and my SSB staircase playbook for the step-by-step approach.

Singapore T-Bill Yields at 1.50%: September 2026 Strategy Guide

SSB

Singapore T-Bill Yields at 1.50%: September 2026 Strategy Guide

By TY → Sunday, August 30, 2026

Meta: Singapore T-bill cut-off yield hit 1.50% in July 2026 with SSB 10-year returns at 2.06%. Here's how to position your cash for the September auctions.

If you've been parking idle cash in a bank account earning next to nothing, 2026 has been your year to reconsider. The Singapore T-bill cut-off yield climbed to 1.50% p.a. in the July 2026 auction — the highest reading of the year — while Singapore Savings Bonds (SSBs) continue to offer a 10-year average return around 2.06% p.a. For a city where cash is king, these are numbers worth acting on.

This guide breaks down the latest T-bill and SSB auction data, what the trends mean for Singapore investors, and how to build a simple ladder strategy into the September 2026 auctions — without overcomplicating your portfolio.

Why Singapore T-bill Yields Are Trending Up in 2026

Singapore's 6-month T-bill cut-off yield has been grinding higher through 2026. The July 2026 auction (BS26113X) closed at 1.50% p.a., up from 1.47% in the previous issue (BS26112T) on 18 June 2026. The cut-off price was S$99.252, with a median yield of 1.45% and an average yield of 1.38%.

The Year's Yield Trajectory

Looking at the trend across 2026, yields have been climbing steadily:

• Feb 2026: 1.36%
• Mar 2026: 1.37% → 1.46%
• Apr 2026: 1.47% → 1.40%
• May 2026: 1.40% → 1.45%
• Jun 2026: 1.48% → 1.47%
• Jul 2026: 1.50%

That's a roughly 14-basis-point improvement since February — not life-changing for a single auction, but meaningful when you compound it across multiple six-month cycles. The 6-month SGS benchmark yield also ticked up to 1.49% by early July, confirming the direction of travel.

Demand Is Cooling — A Silver Lining

One of the more interesting signals in the July auction was the bid-to-cover ratio falling to 2.00, down from 2.36 in the previous issue. Total applications of S$17.4 billion were still roughly double the S$8.7 billion on offer, but the enthusiasm that marked earlier 2026 auctions is clearly easing.

For non-competitive applicants (the simple route most retail investors use), this is actually good news: 100% of non-competitive applications were allotted in July. When demand cools, your odds of getting a full allotment improve — which matters if you're trying to roll over a ladder.

Singapore Savings Bonds: The 2.06% Staircase

For investors willing to lock in for longer, Singapore Savings Bonds remain the workhorse of the conservative Singapore portfolio. The August 2026 issue (SBAUG26) offered a 10-year average return of 2.06% p.a., with interest stepping up from 1.46% in Year 1 to 2.72% by Year 10.

Here's the key structural advantage: a S$10,000 investment held to maturity across 10 years would generate S$2,081.21 in total interest — and every cent is backed by the Singapore Government's AAA credit rating.

What Makes SSBs Different From T-bills

• Step-up interest: Rates increase each year, so your effective yield improves the longer you hold
• Monthly redemption: Exit any month with no penalty (in S$500 multiples)
• Capital guaranteed: Fully backed by the government, redeemable at par
• Tax-exempt: Interest is free from Singapore income tax
• Max exposure: S$200,000 per individual, S$500 minimum

The S$300 million offered for SBAUG26 was unchanged from previous issues, and notably, the preceding SBJUL26 was under-subscribed — another sign that retail demand in this space is normalising from the 2023-2024 frenzy.

How to Build a Singapore T-Bill and SSB Ladder for September 2026

You don't need to choose between T-bills and SSBs — the smartest approach combines both into a rolling ladder. Here's a straightforward framework.

Step 1: Match Your Time Horizon

T-bills (6-month) suit cash you might need within a year. They're sold at a discount, pay no coupon, and the principal is returned at maturity. SSBs (10-year term, step-up) suit money you can commit longer but still want penalty-free access to.

Step 2: Layer Your Allotments

Because T-bill auctions happen roughly fortnightly and a new SSB is issued every month, you can stagger applications so a portion of your cash matures at regular intervals. This is the classic ladder — each rung frees up cash you can reinvest at prevailing (hopefully higher) yields.

Step 3: Use CPF OA and SRS Where It Makes Sense

Both T-bills and SSBs can be funded via CPF Ordinary Account and SRS monies. If you're investing SRS funds, interest flows back into your SRS account — a clean, tax-deferred way to grow that bucket without triggering tax events.

For a deeper dive on structuring these, check out our earlier guides on T-bills vs SSB vs SGS bonds and how to position an SSB staircase for higher yields.

What to Watch in the September 2026 Auctions

The next SSB issue after SBAUG26 was projected to carry an even higher 10-year average return, and T-bill yields have been creeping up all year. Key signals to monitor:

• Bid-to-cover ratios: A continued decline below 2.0 would strongly favour retail non-competitive applicants
• SGS benchmark moves: The 6-month benchmark at 1.49% in early July is a leading indicator for the next T-bill cut-off
• Global rate environment: Singapore yields track US rates with a lag; any Fed easing could pull local yields down
• Issuance calendar: MAS publishes the full 2027 calendar in Oct/Nov 2026 — early visibility helps you plan your ladder

If you already hold a position and want to see the full comparison across instruments, our government bond ladder guide walks through combining T-bills, SSBs, and SGS bonds in one portfolio.

Frequently Asked Questions

What is the current Singapore T-bill yield?

The most recent 6-month T-bill auction (July 2026) closed at a cut-off yield of 1.50% p.a., up from 1.47% the previous month. The 6-month SGS benchmark yield was around 1.49% in early July 2026.

What's the difference between T-bills and SSBs?

T-bills are short-term (6-month or 1-year) instruments bought at a discount with no coupon, while SSBs are 10-year bonds with step-up interest rates, monthly penalty-free redemption, and a S$200,000 individual cap. SSBs are tax-exempt and capital-guaranteed.

Are Singapore T-bills and SSBs safe?

Yes. Both are fully backed by the Singapore Government, which holds an AAA credit rating. If held to maturity, your principal is returned in full. SSBs also offer monthly redemption without penalty.

Can I invest in T-bills with CPF or SRS?

Yes. Both T-bills and SSBs can be funded using CPF Ordinary Account and SRS monies. Interest from SRS-funded investments flows back into your SRS account, keeping your tax deferral intact.

How much can I invest in Singapore Savings Bonds?

The minimum investment is S$500 per bond, and the maximum individual holding across all SSBs is S$200,000. Investments must be in multiples of S$500.

Your Next Move

With T-bill yields at a 2026 high of 1.50% and SSB 10-year returns near 2.06%, the conservative core of your Singapore portfolio is earning more than it has all year. The smart play isn't to chase a single auction — it's to build a rolling ladder that captures yield improvements while keeping your cash accessible.

Check the MAS auction calendar (or track it via iLoveSSB) and mark the next T-bill and SSB application dates. Even a modest S$10,000 position rolled at 1.50% beats a savings account — and the ladder makes it effortless.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Interest rates and auction data are subject to change. Please consult a licensed financial adviser before making investment decisions.

SSB

Singapore Savings Bond Staircase: Positioning for SBSEP26 and Higher Returns

By TY → Sunday, August 23, 2026

Note: This article was researched using publicly available data from the Monetary Authority of Singapore (MAS) and iLoveSSB.com in July 2026. It is for informational and educational purposes only and is not financial advice.

Singapore Savings Bond Staircase: Positioning for SBSEP26 and Higher Returns

If you've been waiting for the right moment to build a Singapore Savings Bond staircase, late 2026 is shaping up to be it. The latest SSB issue (SBAUG26) offers a 10-year average return of 2.06% p.a., and the projected next issue (SBSEP26) is expected to come in even higher. For Singapore investors who want government-backed capital protection with genuine flexibility, an SSB staircase lets you stack monthly issues, capture rising step-up rates, and keep your money redeemable at a moment's notice. Here's exactly how to build one before the next application window closes.

Why an SSB Staircase Makes Sense Right Now

A Singapore Savings Bond staircase — sometimes called an SSB ladder — is simply a strategy of buying a new SSB issue each month so that, over time, you hold a portfolio of bonds issued at different times and different step-up schedules. The appeal lies in three features unique to SSBs:

• Capital guaranteed by the Singapore Government (AAA credit rating)
• Redeemable monthly with no penalty — real liquidity when you need it
• Step-up interest rates that rise from 1.46% (Year 1) to 2.72% (Year 10) on the current issue

Combine these with a tax-exempt interest stream and a minimum of just S$500, and you have one of the most versatile low-risk instruments available to retail investors in Singapore.

The Current SSB Picture (SBAUG26)

Announced on 1 July 2026, SBAUG26 offers a 10-year average return of 2.06% p.a., stepping up from 1.46% in Year 1 to 2.72% by Year 10. A S$10,000 investment held for the full decade would generate S$2,081.21 in total interest. The issue was sized at S$300 million — unchanged from the prior month.

Interestingly, the previous issue (SBJUL26) was under-subscribed, a sign that retail demand has softened in the current rate environment. While that sounds worrying, it's actually good news for staircase builders: softer demand means your applications are more likely to be fully allotted, and the next issue is projected to pay even more.

How to Build Your SSB Staircase in Q3 2026

Building a staircase is straightforward once you understand the cadence. A new SSB is issued every month, with a predictable application-to-issue timeline. Here's the playbook for the next few months.

Step 1 — Know the Timeline

For SBAUG26, applications closed on 28 July 2026, with allotment on 29 July and issue on 3 August 2026. Every month follows a similar rhythm. Mark your calendar so you never miss an application window — SSBs are one of the few instruments where timing your application is genuinely straightforward.

Step 2 — Start Small and Automate the Habit

You can start with as little as S$500. The beauty of a staircase is consistency over size. Instead of dumping a lump sum into one issue, apply a fixed amount every month. Over 10 months you'll hold 10 different issues, each running on its own step-up schedule, effectively averaging your yield across the rate cycle.

Step 3 — Stagger for Flexibility

Because each SSB is redeemable monthly with no penalty, a multi-issue staircase gives you granular control. If you need S$3,000 in cash, you can redeem from whichever issue is convenient without touching the rest. This makes an SSB staircase a superior "emergency fund supercharger" — better yield than a bank savings account, with the same capital protection.

Step 4 — Watch the Projected Higher Returns

The next issue, SBSEP26, is projected to offer a higher 10-year average return than SBAUG26's 2.06%. If you're just starting, waiting for SBSEP26 to begin your staircase means locking in a slightly better baseline from Day 1. If you've already started, simply add SBSEP26 as another rung on the ladder.

For a broader comparison of how SSBs stack up against T-bills and SGS bonds, revisit our earlier guide on Singapore T-Bill vs SSB vs SGS Bonds.

Funding Your Staircase with SRS for Tax Deferral

One of the most powerful — and underused — ways to fund an SSB staircase is through your Supplementary Retirement Scheme (SRS) account.

Why SRS + SSB Is a Powerful Combo

SRS contributions reduce your taxable income in the year you make them. SSB interest, meanwhile, is tax-exempt. Together, they give higher-income earners a double benefit: a tax deduction now and tax-free growth later. For someone in a higher tax bracket, this can meaningfully boost your effective after-tax yield well beyond the headline 2.06%.

Extending to CPF Ordinary Account

While SSBs themselves are purchased with cash or SRS, T-bills can also be funded with CPF Ordinary Account (OA) funds — held to maturity. Many investors run a hybrid approach: an SSB staircase funded by cash/SRS for flexibility, plus T-bills funded by CPF OA for short-term yield. At 1.50% on the latest 6-month T-bill, this combination covers both short and long time horizons. See our breakdown of the 1.50% T-bill yield for the full picture.

Respecting the S$200,000 Cap

Remember that SSBs cap at S$200,000 per individual. If you're married, you and your spouse can each hold the cap, effectively doubling household capacity to S$400,000. For most retail investors this ceiling is more than enough, but it's worth planning around as your staircase grows.

What to Watch in the Months Ahead

A successful SSB staircase strategy isn't set-and-forget. Here are the signals worth tracking for the rest of 2026.

The SBSEP26 Release

Watch for the announcement of SBSEP26, projected with a 10-year average return above the current 2.06%. If confirmed, it becomes your best new rung to add.

The 2027 SGS Issuance Calendar

MAS typically releases the 2027 SGS Issuance Calendar in October–November 2026. This matters for long-term planners because it outlines all upcoming 6-month and 1-year T-bill auctions plus SGS bond issuances across 2, 5, 10, 15, 20, 30, and 50-year tenors. Knowing this calendar lets you align your SSB staircase with broader fixed-income opportunities.

Yield Direction and Demand

The 6-month T-bill cut-off yield reached 1.50% in July 2026, while the 5-year SGS bond came in at 1.75%. If yields keep trending up, later SSB issues could continue improving. The under-subscription of SBJUL26 suggests retail demand is calm — a window where disciplined monthly buying can lock in attractive rungs without bidding against a crowd.

Frequently Asked Questions

1. What exactly is an SSB staircase?

It's a strategy of buying a new Singapore Savings Bond issue every month so you build a portfolio of bonds issued at different times, each with its own step-up rate schedule. Over time this averages your yield across the rate cycle while keeping every rung redeemable monthly with no penalty.

2. What's the minimum and maximum I can invest in SSBs?

The minimum is S$500 and the maximum is S$200,000 per individual. You can start a staircase with as little as S$500 per month and scale up gradually.

3. Is it better to wait for SBSEP26 or start with SBAUG26?

SBSEP26 is projected to offer a higher 10-year average return than SBAUG26's 2.06%. If you're just starting, waiting a few weeks for SBSEP26 gives a slightly better baseline. If you've already started, add SBSEP26 as another rung rather than switching entirely — the whole point of a staircase is holding multiple issues.

4. Can I lose money on an SSB staircase?

No. SSBs are fully backed by the Singapore Government (AAA-rated) and redeemable at face value, so your capital is guaranteed regardless of what happens to interest rates. The only "cost" is opportunity risk if you could have earned more elsewhere, which the step-up structure mitigates over time.

5. Can I use SRS or CPF to fund SSBs?

SSBs can be purchased with cash or SRS funds (SRS offers tax deferral benefits). CPF OA funds are used for T-bills (held to maturity) rather than SSBs. Many investors combine both approaches for a complete fixed-income ladder.

Your Next Move

The Singapore Savings Bond staircase is one of the smartest low-risk moves available to retail investors in late 2026 — and the timing is favourable. With SBAUG26 averaging 2.06%, SBSEP26 projected higher, and retail demand calm enough to secure full allotments, the conditions for building a disciplined monthly ladder have rarely been better.

Start by marking the next SSB application window, decide whether to fund with cash or SRS, and commit to a fixed monthly amount. Keep it small and consistent — the compounding benefit of a staircase comes from time and repetition, not from a single large purchase. Check the latest auction details on MAS.gov.sg and iLoveSSB.com, and start stacking your first rung this month.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. It has not considered your personal financial situation, objectives, or needs. Please consult a licensed financial adviser before making investment decisions. Past performance and current auction data are not guarantees of future returns.

Sources: MAS.gov.sg — Singapore Savings Bonds | iLoveSSB.com — SBAUG26 | MAS.gov.sg — SGS Auction Calendar 2026

SSB

Singapore T-Bill Yield Hits 1.50%: What August 2026 Investors Should Do

By TY → Sunday, August 16, 2026

Note: This article was researched using publicly available data from the Monetary Authority of Singapore (MAS) and iLoveSSB.com in July 2026. It is for informational purposes only and is not financial advice.

Singapore T-Bill Yield Hits 1.50%: What August 2026 Investors Should Do

If you've been tracking Singapore T-Bill yields through 2026, you've watched a quiet but steady climb. The latest 6-month T-bill auction (BS26113X, 2 July 2026) delivered a cut-off yield of 1.50% p.a. — the highest reading this year and a clear signal that the yield curve is shifting. For Singapore investors juggling cash, CPF Ordinary Account funds, and SRS contributions, this moment deserves attention. In this guide, we break down what the 1.50% T-bill yield means, how it compares to Singapore Savings Bonds (SSB), and how to position your fixed-income portfolio for the rest of 2026.

Why the 1.50% T-Bill Yield Matters Right Now

Let's put the latest auction in context. The BS26113X 6-month T-bill on 2 July 2026 saw a cut-off yield of 1.50% p.a., up from 1.47% in the previous issue (BS26112T on 18 June 2026). The cut-off price was 99.252, meaning investors bought the bill at a discount and receive S$100 at maturity. Median yield came in at 1.45%, while the average yield was 1.38%.

Bid-to-Cover Ratio: Demand Is Cooling

One number deserves special attention: the bid-to-cover ratio fell to 2.00, down from 2.36 in the previous auction. This tells us demand is normalising. Total applications reached S$17.4 billion against S$8.7 billion offered — still a healthy 2x oversubscription, but the frenzy of 2024 is clearly over. Non-competitive applications received 100% allotment, and competitive bids at the 1.50% cut-off got roughly 45.46% allotment.

The Yield Trend Through 2026

Looking at the full-year picture, the upward drift is unmistakable:

• February 2026: 1.36%
• March 2026: 1.37% → 1.46%
• April 2026: 1.47% → 1.40%
• May 2026: 1.40% → 1.45%
• June 2026: 1.48% → 1.47%
• July 2026: 1.50%

The 6-month SGS benchmark yield has been tracking at 1.46–1.49% in late June and early July, confirming that the 1.50% cut-off isn't an outlier — it's the new baseline.

Singapore Savings Bonds (SSB) at 2.06%: The Longer-Term Alternative

If 6 months feels too short, the latest Singapore Savings Bond (SBAUG26) announced on 1 July 2026 offers a compelling alternative at a 2.06% p.a. 10-year average return. This is a step-up structure: interest climbs from 1.46% in Year 1 to 2.72% by Year 10. A S$10,000 investment held for the full decade would earn S$2,081.21 in total interest.

SSB Features Worth Remembering

The Singapore Savings Bond comes with features that make it uniquely suited for conservative Singapore investors:

• Capital guaranteed by the Singapore Government (AAA credit rating)
• Redeemable monthly with no penalty — true liquidity when you need it
• Step-up interest rates that reward longer holding periods
• Tax-exempt interest income
• Minimum S$500, maximum S$200,000 per individual
• Available for both cash and SRS investments

The SBAUG26 Snapshot

SBAUG26 offered S$300 million — unchanged from the previous issue. Interestingly, the previous SSB (SBJUL26) was under-subscribed, a sign that retail demand for SSBs has softened in the current rate environment. Applications for SBAUG26 closed on 28 July, with allotment on 29 July and issue date of 3 August 2026. Looking ahead, the next SSB (SBSEP26) is projected to offer an even higher 10-year average return.

For a step-by-step breakdown of how these instruments differ, check out our earlier guide on Singapore T-Bill vs SSB vs SGS Bonds.

Building Your Fixed-Income Ladder for Late 2026

With T-bill yields at 1.50% and SSB 10-year average returns at 2.06%, now is an excellent time to think structurally. Here's how to combine these instruments into a ladder that serves different liquidity needs.

Option 1: The Simple T-Bill Roller

If your time horizon is under 12 months, rolling 6-month T-bills is straightforward. Non-competitive bids are currently getting 100% allotment, making this a low-friction strategy. The next auction, BS26114W on 16 July 2026, is worth watching — if the bid-to-cover stays around 2.0, yields could hold at 1.50% or tick higher.

Option 2: The SSB Staircase

For money you won't need for 2–10 years, SSBs offer the step-up structure that rewards patience. Because SSBs are redeemable monthly with no penalty, they act as an "emergency fund supercharger" — better yield than a bank savings account, with government-backed capital protection. Many investors build an SSB staircase by buying one issue per month, collecting rising step-up rates over time.

Option 3: SRS and CPF Integration

Both T-bills and SSBs can be purchased using SRS funds, which defers taxes on interest earned — an attractive feature for higher-income earners. T-bills can also be bought with CPF Ordinary Account funds, giving your OA balance a yield boost above the default 2.5%. Note that CPF purchases require you to hold the T-bill to maturity, so plan your cash flow accordingly. For more on this, revisit our analysis of T-bill at 1.50% and SSB at 2.06%.

What the Cooling Demand Means for You

The slide in bid-to-cover ratios — from 2.36 to 2.00 in consecutive auctions — deserves careful interpretation. It doesn't signal distress; it signals normalisation. In 2024, when T-bill yields spiked above 3.7%, retail investors flooded in. Now that yields have settled into the 1.4–1.5% range, demand has become more measured.

Why This Is Actually Good News

Cooler demand has two practical benefits for ordinary investors:

• Higher allotment probabilities — non-competitive applications are getting 100% filled, which wasn't always the case during the 2024 rush.
• More predictable yields — with stability at the 1.50% level, you can plan around a known baseline rather than chasing volatile spikes.

If you're new to this, our Singapore T-Bills yield analysis walks through the fundamentals.

Key Dates to Watch (August–September 2026)

• Ongoing: Watch for the next T-bill auction (BS26114W and subsequent issues) — 6-month yields likely to hover around 1.50%.
• September 2026: SBSEP26 SSB expected with a projected 10-year average return above 2.06%.
• October–November 2026: MAS releases the 2027 SGS Issuance Calendar — important for long-term bond ladder planning.

The MAS auction calendar is your best friend here; it lists all upcoming 6-month, 1-year T-bill auctions and SGS bond issuances across 2, 5, 10, 15, 20, 30, and 50-year tenors.

Frequently Asked Questions

Is a 1.50% T-bill yield worth investing in?

Compared to bank fixed deposits in Singapore (which have been drifting below 1.5% for most short tenors), a 1.50% risk-free, government-backed yield is still competitive. It's especially attractive if you're parking cash you'll need within 6–12 months and want zero capital risk.

Should I choose T-bills or SSBs right now?

It depends on your time horizon. If you need liquidity within a year, roll 6-month T-bills. If you're comfortable locking funds for 2–10 years and want the step-up structure, SSBs (like SBAUG26 at 2.06% average) are stronger. Many investors use both in a ladder.

Can I use CPF or SRS to buy T-bills?

Yes. Both T-bills and SSBs can be purchased with SRS funds, offering tax deferral on interest. T-bills can also be bought with CPF OA funds, provided you hold them to maturity. SSBs support both cash and SRS purchases.

What's the maximum I can invest in SSBs?

Each individual can hold up to S$200,000 in Singapore Savings Bonds, with a minimum purchase of S$500. This is a cap on total holdings, not per-issue.

Are T-bill and SSB returns taxable?

Interest income from Singapore Government T-bills and SSBs is tax-exempt for individuals. Combined with their AAA-backed capital guarantee, this makes them among the most tax-efficient and secure fixed-income options available in Singapore.

Your Next Move

The Singapore T-bill yield holding at 1.50% and SSB returns at 2.06% give you a clear, risk-free baseline — but only if you act on them. Start by checking the MAS auction calendar, decide whether 6-month T-bills or 10-year SSBs match your liquidity needs, and build a simple ladder that works with your CPF, SRS, or cash. The window of attractive risk-free yield won't last forever if rates drift lower, so locking in today's levels while they're available is the smart play.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. It has not considered your personal financial situation, objectives, or needs. Please consult a licensed financial adviser before making investment decisions. Past performance and current auction data are not guarantees of future returns.

Sources: MAS.gov.sg — Singapore Savings Bonds | iLoveSSB.com — T-bill auction BS26113X | MAS.gov.sg — SGS Auction Calendar 2026

SSB

Singapore T-Bill vs SSB vs SGS Bonds: August 2026 Ladder Guide

By TY →

Singapore T-Bill vs SSB vs SGS Bonds: August 2026 Ladder Guide

If you're comparing Singapore T-Bill vs SSB vs SGS bonds in August 2026, you're asking the right question at the right time. Singapore government-backed fixed income is quietly becoming attractive again, with 6-month T-bills climbing back to 1.50% p.a. and Singapore Savings Bonds (SSBs) offering a 10-year average return of 2.06% p.a. For Singapore investors who have watched cash sit idle in savings accounts earning next to nothing, this is a meaningful shift worth acting on.

This guide breaks down exactly where rates stand in August 2026, how T-bills, SSBs, and SGS bonds differ, and how you can build a fixed-income ladder that matches your cash-flow needs — all backed by the latest auction data from MAS and iLoveSSB.

Where Singapore Fixed-Income Rates Stand in August 2026

The most recent 6-month T-bill auction (BS26113X, held 2 July 2026) delivered a cut-off yield of 1.50% p.a. — up from 1.47% in the previous issue. The cut-off price was 99.252, with a median yield of 1.45% and an average yield of 1.38%. Total applications reached S$17.4 billion against S$8.7 billion offered, giving a bid-to-cover ratio of 2.00 (down from 2.36 previously, but still healthy).

Notably, non-competitive applications received 100% allotment, and competitive bids at the 1.50% cut-off were about 45.46% allotted. This matters because it means even small retail investors who applied through OCBC, DBS, or UOB got fully filled on their non-competitive bids.

The 2026 T-bill yield trend is clearly upward

Looking at the full 2026 trajectory makes the picture clearer:

• Feb 2026: 1.36%
• Mar 2026: 1.37% → 1.46%
• Apr 2026: 1.47% → 1.40%
• May 2026: 1.40% → 1.45%
• Jun 2026: 1.48% → 1.47%
• Jul 2026: 1.50%

From 1.36% in February to 1.50% in July, 6-month T-bill yields have risen by 14 basis points this year. The 6-month SGS benchmark yield is tracking at around 1.49% as of early July. For a risk-free, government-backed instrument, this is a respectable yield in today's environment.

Meanwhile, the latest Singapore Savings Bond (SBAUG26, announced 1 July 2026) offers a 10-year average return of 2.06% p.a., with interest stepping up from 1.46% in Year 1 to 2.72% in Year 10. A S$10,000 investment held for the full 10 years would generate S$2,081.21 in total interest. The issue was sized at S$300 million.

On the longer end, the most recent 5-year SGS bond (NX21100N, issued 26 June 2026) had a cut-off yield of 1.75% p.a.

T-Bill vs SSB vs SGS Bonds — Key Differences

Before you decide where to park your money, it's essential to understand that T-bills, SSBs, and SGS bonds serve different purposes, even though they're all backed by the Singapore Government (AAA-rated).

Singapore T-Bills (6-month and 1-year)

• Tenor: Short — 6 months or 1 year
• Structure: Sold at a discount, no coupon payments; you receive face value at maturity
• Interest: Cut-off yield of 1.50% p.a. on the latest issue
• Redemption: Only at maturity — no early exit
• Eligible funds: Cash, CPF Ordinary Account (OA), and SRS

T-bills are ideal for money you know you'll need within a year, or as a parking spot for cash between other investments. The main caveat: once you commit, the money is locked until maturity.

Singapore Savings Bonds (SSBs)

• Tenor: 10 years, but effectively flexible
• Structure: Step-up interest rates, from 1.46% to 2.72%
• Average: 2.06% p.a. over 10 years
• Redemption: Redeemable monthly with no penalty — this is the killer feature
• Limits: Minimum S$500, maximum S$200,000 per individual
• Tax: Interest is tax-exempt
• Eligible funds: Cash and SRS

SSBs are the most flexible option because you can exit monthly without penalty, making them a great emergency-fund or short-to-medium-term parking spot that still earns a step-up rate. Capital is guaranteed by the Singapore Government.

SGS Bonds (2 to 50 years)

• Tenor: Longer — 2, 5, 10, 15, 20, 30, and 50 years
• Structure: Pay semi-annual coupons
• Yield: 5-year cut-off at 1.75% p.a.
• Redemption: Hold to maturity, or sell on the secondary market (price risk)
• Capital: Guaranteed if bought at auction and held to maturity

SGS bonds suit investors with a longer horizon who are comfortable with interest-rate risk if they need to sell early. They also help lock in current yields for a decade or more.

Building a Fixed-Income Ladder in 2026

The smartest way to use these instruments together is to build a fixed-income ladder that matches your cash-flow needs at different time horizons. Here's a practical framework.

Tier 1: Immediate cash needs (0–6 months)

Keep 6 months of expenses in a high-interest savings account or the latest 6-month T-bill. At 1.50% p.a., the yield beats most time deposits, and the 100% allotment on non-competitive bids means small investors get filled reliably. If you might need the cash before 6 months, skip the T-bill and use a liquid savings account instead.

Tier 2: Short-to-medium term (1–3 years)

This is where SSBs shine. The no-penalty monthly redemption means your money is never truly locked — you can pull it out anytime while earning the step-up rate. With SBAUG26 averaging 2.06% over 10 years and stepping from 1.46% to 2.72%, you're beating the current T-bill rate in the early years while keeping full flexibility.

Tier 3: Long-term core (5+ years)

For funds you won't touch for 5 years or more, consider SGS bonds to lock in yields like the 1.75% 5-year rate, or simply keep stacking SSBs up to the S$200,000 limit. The step-up structure of SSBs means each passing year you hold, your yield increases — rewarding patience.

Dollar-cost averaging into each auction

Because T-bills and SSBs are issued monthly or bi-monthly, you can dollar-cost average. Apply in smaller amounts across multiple auctions rather than dumping a lump sum into one. The recent trend of rising yields (1.36% → 1.50% this year) means later auctions could offer slightly better rates — but don't wait forever and miss out on the current 1.50%.

CPF OA and SRS: Supercharging Your Bond Allocation

One of the most underused strategies is funding T-bills and SSBs with CPF Ordinary Account (OA) and SRS funds.

Using CPF OA for T-bills

CPF OA currently earns a base 2.5% p.a. interest. When T-bill yields rise toward 1.50% and beyond, investing your OA funds into T-bills becomes competitive — especially if you already have a comfortable OA buffer above your housing needs. However, note that at 1.50%, T-bills still sit below the 2.5% CPF OA floor, so only invest OA money you're comfortable reallocating. Many investors use this strategy to arbitrage when T-bill rates spike above 2.5% — not currently the case, but worth monitoring.

Using SRS for SSBs

SRS (Supplementary Retirement Scheme) contributions reduce your taxable income, and SSB interest is tax-exempt. This combination is powerful for higher-income earners: you get a tax deduction now, and the interest grows tax-free. If you're in a higher tax bracket, this effectively boosts your after-tax yield significantly beyond the headline 2.06%.

Maximising the S$200,000 SSB cap

Remember that SSBs cap at S$200,000 per individual. If you're married, you and your spouse can each hold the cap, effectively doubling capacity to S$400,000 for the household. For most retail investors this is more than enough, but it's worth knowing the boundary as you scale up.

FAQ

1. Is a Singapore T-Bill or SSB better in August 2026?

It depends on your horizon. T-bills (1.50% for 6 months) suit money you need within a year. SSBs (2.06% average over 10 years, redeemable monthly) suit money you might need anytime while still wanting a market-leading, government-backed yield. For flexibility, SSBs generally win.

2. Can I lose money on Singapore T-bills or SSBs?

Both are fully backed by the Singapore Government (AAA-rated). Your capital is guaranteed if you hold T-bills to maturity or hold SSBs (redeemable at face value). The main "risk" is opportunity cost if yields rise — but with SSB's step-up structure, your yield actually increases each year you hold.

3. What's the minimum to invest in SSBs?

The minimum is S$500, and the maximum is S$200,000 per individual. Applications are processed through your bank (DBS/POSB, OCBC, or UOB) via ATMs, internet banking, or mobile apps.

4. Are SSB and T-bill interest taxable?

No. Interest earned on both Singapore T-bills and SSBs is tax-exempt in Singapore. There are no capital gains taxes on these either, making them highly tax-efficient.

5. How often can I apply for T-bills and SSBs?

New SSBs are issued every month (SBAUG26 application closed 28 July 2026). T-bills are auctioned regularly, roughly every two weeks for 6-month tenors. You can apply to each new issue as often as you like, which enables dollar-cost averaging.

Conclusion

In August 2026, Singapore's government-backed fixed income is offering a genuinely attractive, low-risk yield: 1.50% on 6-month T-bills, 2.06% average on SSBs, and 1.75% on 5-year SGS bonds. With yields trending upward all year, there's a real case to start building or topping up your fixed-income ladder now, rather than letting cash rot in a savings account.

Start simple: park your near-term cash in the next 6-month T-bill, build an SSB position for flexibility, and consider SRS funding to multiply your after-tax returns. As always, align your allocation with your own time horizon and risk tolerance, and check the latest auction calendars on MAS.gov.sg.

Want to go deeper? Read my guide to building a Singapore Government bond ladder and the July T-bill vs SSB comparison for the full picture.

Disclaimer: This article is for informational purposes only and is not financial advice. Past performance and current auction data do not guarantee future returns. Always do your own research and consider consulting a licensed financial adviser before making investment decisions.

Sources: iLoveSSB.com, Monetary Authority of Singapore

SSB

Singapore T-Bill Demand Is Cooling: What Lower Bid-to-Cover Ratios Mean for Investors (July 2026)

By TY → Sunday, July 5, 2026

Financial market analysis — Singapore T-Bill and SSB investment strategy for July 2026. (Royalty-free image from Pexels)

Singapore T-Bill Demand Is Cooling: What Lower Bid-to-Cover Ratios Mean for Investors (July 2026)

Singapore T-Bills have been the darling of conservative investors since 2022, offering safe, predictable returns backed by the Singapore Government. But the July 2026 auction of the 6-month T-bill (BS26113X) revealed a telling shift: the bid-to-cover ratio dropped to 2.00, down from 2.36 just two weeks prior. While the cut-off yield inched up to 1.50% p.a. — a new 2026 high — the declining demand signals a market in transition. For Singapore investors building their fixed-income strategy, understanding what this cooling demand means is critical to making smarter decisions in the second half of 2026.

In short: Singapore T-Bill demand is softening, but yields are still climbing — and that creates interesting opportunities for the informed investor.

What the July 2026 T-Bill Auction Reveals and Why Demand Is Cooling

According to data from MAS.gov.sg and iLoveSSB.com, the latest 6-month T-bill auction (BS26113X, announced 2 July 2026) painted a mixed picture. MAS offered S$8.7 billion in T-bills and total applications reached S$17.4 billion — still 2x oversubscribed, but down from 2.36x in mid-June.

Key Auction Metrics

Metric	BS26112T (18 Jun)	BS26113X (2 Jul)	Change
Cut-off yield	1.47% p.a.	1.50% p.a.	+3 bps
Cut-off price	S$99.258	S$99.252	Lower
Bid-to-cover ratio	2.36	2.00	-15%
Total applied	S$17.2B	S$17.4B	Stable
Competitive allotment at cut-off	~33%	~45%	Higher

The cut-off yield rose 3 basis points to 1.50% p.a., the highest since February 2026. Meanwhile, the bid-to-cover ratio dropped from 2.36 to 2.00.

Why Demand Is Cooling

Several factors verified against MAS official data explain this shift:

Competition from SSBs and SGS Bonds. The Singapore Savings Bond SBAUG26 offers a 10-year average return of 2.06% p.a., with step-up interest reaching 2.72% by Year 10. For investors with a longer horizon, SSBs are increasingly attractive relative to T-bills.

Cash deployment elsewhere. With Singapore equities and global markets showing more activity in mid-2026, some retail investors who piled into T-bills during the 3.7% yield days of late 2023 may be rotating back into riskier assets.

Normalisation after the 2022–2024 spike. T-bill yields surged from near-zero to over 4% in late 2023, attracting unprecedented demand. As yields settle in the 1.3–1.5% range, the frenzy has naturally subsided.

What Lower Demand Means for Your Investment Strategy and H2 2026 Outlook

The cooling demand isn't necessarily bad news — according to auction data from iLoveSSB.com, it creates some distinct advantages for retail investors.

Better Allotment for Everyone

When demand was red-hot in 2023–2024, non-competitive bidders were frequently rationed. In the July 2026 auction, non-competitive applications received 100% allotment, and competitive bids at the cut-off yield saw ~45% allotment (up from ~33% in June). If you're applying for T-bills via DBS, OCBC, or UOB, you're far more likely to deploy your full investment amount.

Yields Still Trending Up

Despite cooling demand, yields are rising — not falling. The 6-month SGS benchmark yield was trending at 1.46% in late June and rose to 1.49% by July 2. If you've been waiting on the sidelines, the trend is in your favour. The next auction (BS26114W on 16 July 2026) will be a key indicator.

The Yield Trajectory So Far

According to iLoveSSB.com data, here's the 6-month T-bill yield trend in 2026:

• February: 1.36% → March: 1.37% to 1.46% → April: 1.47% to 1.40%
• May: 1.40% to 1.45% → June: 1.48% to 1.47% → July: 1.50%

The trend is gently rising within a ~10-basis-point band. The 1.50% level is the highest since late February.

Three Indicators to Watch for H2 2026

1. US Federal Reserve Policy. MAS tracks US interest rates through the SGS benchmark mechanism. If the Fed holds steady, Singapore T-bill yields will likely stay in the 1.4–1.6% range.

2. SGS Benchmark Spreads. The 6-month SGS benchmark was at 1.49% on 2 July. The 5-year SGS bond (NX21100N) cut-off yield was 1.75% on 26 June. Watching this spread helps predict T-bill direction.

3. SSB Issuance Trends. The next SSB (SBSEP26) is projected to offer a higher 10-year average return than SBAUG26's 2.06%, potentially shifting more T-bill demand toward SSBs.

T-Bills vs SSB: Choose the Right Tool for Your Horizon

With T-bill yields at 1.50% and SSB SBAUG26 offering a 2.06% average return, the decision framework is clearer than ever.

Short-Term Cash (6–12 Months): T-Bills Win

If you need liquidity within the next year, T-bills remain the superior choice — beating most fixed deposit rates (1.0–1.2% for 6-month tenors) with capital guarantee.

Key advantages:

• Maturity in 6 months — aligns with short-term savings goals
• Can use CPF OA and SRS — MAS confirms both are eligible
• S$1,000 minimum — accessible to most investors

For a more detailed comparison, see our Singapore T-Bills vs Fixed Deposits 2026 guide.

Medium-Term Horizon (2–10 Years): SSB Wins

The 10-year average return of 2.06% p.a. beats T-bills by 56 basis points, and the step-up structure means your effective yield increases the longer you hold — reaching 2.72% by Year 10.

What makes SSBs particularly attractive, as confirmed by MAS:

• Capital guaranteed — backed by the Singapore Government's AAA credit rating
• Monthly redemption with no penalty — exit any time after Year 1
• Tax-exempt interest — both interest and capital gains are tax-free
• S$200,000 max individual holding

Application for SBAUG26 closes on 28 July 2026. For a full breakdown, see our Singapore T-Bill at 1.50% and SSB at 2.06%: July 2026 Comparison Guide.

The Hybrid Strategy: Build a Government Bond Ladder

Rather than choosing one, consider a bond ladder:

1. Tranche 1 (0–6 months): 6-month T-bill for immediate liquidity
2. Tranche 2 (6–18 months): Roll over T-bills for short-term yield
3. Tranche 3 (2–10 years): SSB SBAUG26 for medium-term step-up growth

This approach keeps everything government-guaranteed while diversifying maturity dates. We detail this in Building a Singapore Government Bond Ladder in July 2026.

Frequently Asked Questions

Q: Is 1.50% a good T-bill yield in 2026?

A: In the current environment, yes. According to iLoveSSB.com data, it's the highest 6-month T-bill yield since February 2026 and beats most fixed deposits. For a risk-free, government-backed investment, 1.50% is competitive.

Q: Can I invest in T-bills using CPF OA or SRS?

A: Yes, both are eligible. MAS confirms T-bills can be purchased with CPF OA and SRS funds — an excellent option for deploying idle CPF cash.

Q: Should I apply competitively or non-competitively?

A: Currently, non-competitive applications receive 100% allotment, so there's little reason to submit a competitive bid unless you have a specific target yield. Non-competitive ensures you get the cut-off yield at 1.50%.

Q: When is the next T-bill and SSB deadline?

A: The next 6-month T-bill auction (BS26114W) is on 16 July 2026. SSB SBAUG26 closes on 28 July 2026. Check the MAS auction calendar for the full schedule.

Q: Should I be worried about falling T-bill demand?

A: Not at all. A bid-to-cover ratio of 2.00 is still healthy — applications double the amount offered. The decline from 2.36 actually benefits retail investors with better allotment and more predictable yields. It reflects normalisation, not weakness.

Conclusion and Next Steps

The cooling T-bill demand in July 2026 isn't a reason to avoid T-bills — it makes them more accessible with better allotment odds and more predictable yields. At 1.50% p.a., T-bills remain an excellent vehicle for short-term cash, and paired with SSB SBAUG26 at 2.06%, Singapore investors have a robust government-guaranteed fixed-income strategy at their disposal.

Here's your call to action: If you have cash earning negligible interest in a bank account, apply for the next T-bill auction on 16 July. For medium-term savings, submit your SBAUG26 application before the 28 July deadline via your DBS, OCBC, or UOB internet banking. And for the full-year picture, read our Singapore T-Bill Yield Analysis 2026.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. The information is based on publicly available MAS and iLoveSSB data as of July 2026. Past performance and historical yields do not guarantee future results. Please consult a licensed financial advisor for personalised advice tailored to your financial situation. Investing involves risk, including potential loss of principal.

SSB

Singapore T-Bill at 1.50% and SSB at 2.06%: July 2026 Comparison Guide

By TY → Thursday, July 2, 2026

Singapore Savings Bonds and T-Bills comparison for July 2026. (Royalty-free image from Pexels)

Singapore T-Bill at 1.50% and SSB at 2.06%: July 2026 Comparison Guide

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Not financial advice | Disclaimer: This article is for informational and educational purposes only. It does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions. Past performance is not indicative of future results.

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Breaking Down the Latest T-Bill and SSB Returns

The latest Singapore 6-month Treasury Bill (T-bill) auction on 2 July 2026 delivered a cut-off yield of 1.50% p.a. — the highest level since April and a clear uptick from 1.47% just two weeks prior. At the same time, the August 2026 Singapore Savings Bond (SBAUG26) offers a 10-year average return of 2.06% p.a. with a step-up structure reaching 2.72% by Year 10.

For Singapore investors sitting on idle cash, these two government-backed instruments present a compelling choice. This builds on our Singapore T-Bills Yield Analysis 2026 and the T-Bills vs Fixed Deposits comparison from June — both remain relevant but need updating with the latest auction results.

T-Bill Auction: BS26113X (2 July 2026)

The 6-month T-bill auction attracted S$17.4 billion in applications against S$8.7 billion offered, yielding a bid-to-cover ratio of 2.00x. While healthy, this was lower than the 2.36x seen in the previous BS26112T auction on 18 June.

Key auction results:

• Cut-off yield: 1.50% p.a. (up 3 basis points from 1.47% on 18 June)
• Cut-off price: S$99.252 per S$100 face value
• Median yield: 1.45% p.a.
• Average yield: 1.38% p.a.
• Non-competitive applications: 100% allotted
• Competitive applications at cut-off: ~45.46% allotted
• Next auction: BS26114W on 16 July 2026

The 2026 yield trajectory so far:

The 6-month cut-off yield has edged higher since its low of 1.36% in February. After hovering between 1.40–1.48% from April through June, the July auction finally broke past the 1.50% barrier. The 6-month SGS benchmark yield reached 1.49% on 2 July, confirming the upward trend.

This gradual recovery reflects market expectations around interest rates globally. While the near-4% yields of late 2023 are unlikely to return in this cycle, yields above 1.50% represent attractive risk-free returns in the current Singapore dollar environment, especially with inflation remaining moderate.

T-Bills vs SSB: Which Is Right for You?

The perennial question for Singapore retail investors now has fresh data to inform the answer.

Singapore Savings Bonds (SBAUG26)

Announced on 1 July 2026, SBAUG26 offers:

• 10-year average return: 2.06% p.a.
• Year 1 interest: 1.46% (comparable to T-bills)
• Year 10 interest: 2.72% (step-up structure)
• S$10,000 invested over 10 years: S$2,081.21 total interest
• Issue size: S$300 million
• Closing date: 28 July 2026

The previous issue (SBJUL26) was under-subscribed, suggesting that investors may be waiting for higher rates. The next SSB (SBSEP26) is projected to offer an even higher 10-year average return.

Head-to-Head Comparison

Feature	6-Month T-bill (BS26113X)	SSB (SBAUG26)
Return	1.50% p.a. (fixed, 6 months)	1.46% (Y1) to 2.72% (Y10), avg 2.06%
Tenor	6 months	Up to 10 years
Liquidity	Must hold to maturity	Redeemable monthly, no penalty
Min. investment	S$1,000 (non-competitive)	S$500
Max. individual limit	None	S$200,000
CPF OA eligible	Yes	Yes
SRS eligible	Yes	Yes

When T-Bills Win

T-bills are the better choice when you need the money within 6–12 months, want to avoid long-term commitment, or are parking cash ahead of other investment opportunities. They also let you ride a rising rate environment — if yields keep climbing, you can reinvest at higher rates every six months.

When SSB Wins

SSBs work better for long-term, safe income. The step-up structure rewards patience: hold for 10 years and your effective yield reaches 2.06% p.a., significantly above T-bill rates. The ability to redeem any month without penalty is a powerful feature that conventional bonds don't offer. SSBs are also excellent for building a retirement income ladder. For comparison with higher-risk options, check our analysis of Singapore REITs vs US Cash ETFs.

Practical Strategies with SRS and CPF OA

One of the most powerful moves Singapore investors can make is using SRS funds and CPF Ordinary Account savings to invest in T-bills and SSBs.

SRS + T-bills: Double Tax Benefit

With SRS contributions being tax-deductible (up to S$15,300 per year), using SRS funds to buy T-bills creates a dual advantage:

1. Upfront tax savings on the contribution year
2. Tax-exempt returns from the T-bill (SGS interest is tax-free)
3. Only 50% of SRS withdrawals are taxable at retirement

A S$15,300 SRS contribution invested in T-bills at 1.50% would yield approximately S$114.75 in interest over six months — entirely tax-free, stacked on top of the upfront tax relief.

CPF OA + T-bills

CPF OA savings earn a base rate of 2.5% p.a., which still outpaces 1.50% T-bill yields. However, for OA funds exceeding the first S$20,000, investing in T-bills can be worthwhile if you expect rates to climb further or want to diversify within your CPF investment portfolio.

The 5-year SGS bond (NX21100N, auctioned on 26 June 2026 at 1.75% p.a.) offers a middle ground for those considering longer-term CPFIS investments. You can find full details of SGS bonds and SSBs on the MAS bonds and bills page.

H2 2026 Outlook, Auctions, and Tips

Upcoming Auctions

T-bill auctions to watch: BS26114W (16 Jul), BS26115N (30 Jul), BS26116V (13 Aug), BS26117A (27 Aug). SSB deadlines: SBAUG26 closes 28 Jul 2026. The next SSB (SBSEP26) is projected to offer an even higher 10-year average return.

Rate Outlook

T-bill yields appear to be in a gradual recovery phase. With the US Federal Reserve maintaining a cautious stance on rate cuts and MAS keeping the SGD NEER policy band steady (per MAS's official statements), short-term SGS yields are likely to hover in the 1.40–1.70% range through H2 2026. Key factors include US Fed decisions, MAS's October 2026 statement, and Singapore's GDP growth.

Quick Tips for Applicants

1. Use non-competitive bids — retail investors are guaranteed 100% allotment at the cut-off yield
2. Set up SRS and CPFIS accounts early — don't wait until auction week
3. Diversify between T-bills and SSB — use T-bills for short-term cash and SSB for long-term savings
4. Compare with high-yield savings accounts — OCBC 360, UOB One, and CIMB FastSaver may offer competitive rates for smaller amounts, though T-bills lock in your rate for the full term without needing to meet monthly criteria

Ready to act? The next T-bill auction is 16 July 2026, and SBAUG26 closes on 28 July 2026. Apply through DBS/POSB, OCBC, or UOB internet banking, or your brokerage account.

Frequently Asked Questions

Q: What's the minimum to invest in Singapore T-bills?
A: The minimum non-competitive application is S$1,000. Competitive bids have no stated minimum but are typically used by larger investors.

Q: Can I lose money on T-bills?
A: If bought at auction and held to maturity, T-bills are fully backed by the Singapore Government (AAA-rated). Selling in the secondary market before maturity could result in a loss if rates have risen.

Q: Are T-bill returns taxable?
A: No. Interest from Singapore Government Securities (T-bills and SSBs) is tax-exempt.

Q: T-bills at 1.50% or SSB at 2.06% — which is better?
A: It depends on your holding period. Need the money within 6–12 months? T-bills. Can commit 5–10 years? SSB's step-up structure delivers higher long-term returns with the flexibility to redeem early.

Q: Can I use CPF OA funds for T-bills?
A: Yes, through the CPF Investment Scheme (CPFIS). Interest earned goes back into your CPF OA.

Conclusion and Next Steps

The July 2026 T-bill auction at 1.50% and SSB SBAUG26 at 2.06% average return give Singapore investors two excellent risk-free options. While neither matches the eye-catching yields of late 2023, both offer meaningful real returns in today's moderate inflation environment — backed by the Singapore Government's AAA credit rating.

The smartest approach? Use both. Pair short-term T-bills for cash management with a long-term SSB ladder for retirement savings. This barbell strategy gives you liquidity, safety, and gradual step-up returns across your portfolio.

Ready to act? The next T-bill auction is 16 July 2026, and SBAUG26 closes on 28 July 2026. Apply through DBS/POSB, OCBC, or UOB internet banking, or your brokerage account.

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Disclaimer: This article is for educational purposes only and does not constitute financial advice. Please consult a licensed financial adviser for advice tailored to your personal situation. The author may hold positions in instruments discussed.

Singapore T-Bills

Singapore T-Bills Yield Analysis 2026: Where Do Investors Go From Here?

By TY → Sunday, June 21, 2026

Singapore T-Bills Yield Analysis 2026: Where Do Investors Go From Here?

Singapore's financial hub — where T-Bills offer government-backed returns in a shifting rate environment. (Royalty-free image from Pexels)

Singapore T-Bills (Treasury Bills) have been a go-to safe haven for risk-averse investors, but the yield landscape is shifting in 2026. With 6-month yields declining to 1.37% and 1-year yields at 2.95% (source: MAS auction data via Business Times, April 2026), Singapore investors are asking a critical question: are Singapore T-Bills still worth it in the current interest rate environment?

This analysis breaks down the latest yield trends, compares T-Bills against alternatives, and offers practical strategies for Singapore investors navigating the shifting rate landscape — backed by verified data from MAS, Business Times, and Singapore bank documentation.

Current T-Bill Yields and Market Forces

As of verified MAS auction results (April-May 2026), Singapore T-Bill yields are sending mixed signals:

• 1-year T-Bills: 2.95% — up modestly from 2.71% in October 2025
• 6-month T-Bills: 1.37% — continuing a downward trend from 1.41% in October 2025

The yield curve has steepened, with longer-term yields notably higher than short-term ones. This pattern reflects market expectations that short-term rates will continue easing as global central banks pivot toward looser monetary policy. Three key forces are driving these trends:

Global interest rate trajectory. The US Federal Reserve's signalling on rate cuts continues to influence global bond markets. With lower expectations for aggressive cuts announced through early 2026, global yields are finding a new equilibrium. Since Singapore Government Securities (SGS) rates track global benchmarks, this directly impacts T-Bill auction cut-off yields.

Moderating inflation. According to MAS's latest monetary policy statement (confirmed as of April 2026), the central bank is maintaining its current settings amid "resilient economic growth" while monitoring inflation risks from higher oil prices and geopolitical tensions.

Geopolitical uncertainty. Ongoing Middle East tensions and their effect on energy prices could reignite inflation if sustained. MAS has flagged these risks in its policy statements, which investors should monitor when making fixed-income allocation decisions.

T-Bills are issued by MAS on behalf of the Singapore Government with AAA credit backing. They're sold at a discount and mature at face value — the difference is your interest. Key features include a minimum investment of S$1,000 with S$1,000 increments, tax-free interest for individual investors, bi-weekly MAS auctions, and a liquid secondary market available through banks.

T-Bill Investment Strategies for 2026

The CPF Optimisation Play

One of the most compelling T-Bill use cases in 2026 remains CPF investment. Singaporeans can use CPF Ordinary Account (OA) and Special Account (SA) funds to bid for T-Bills through the CPF Investment Scheme (CPFIS).

The math: CPF OA offers a base rate of 2.5% while 1-year T-Bills yield 2.95%. That's an extra 0.45% on your OA funds with virtually zero additional risk — both instruments are backed by the Singapore Government. For OA balances above S$20,000, this can meaningfully boost your retirement savings. However, CPF SA funds (4.08%) are currently better left in the account rather than deployed into T-Bills since the SA rate exceeds available T-Bill yields.

How to apply: Use your preferred bank's digital platform — DBS, OCBC, and UOB all support CPF-based T-Bill applications through CPFIS. Non-competitive bids guarantee full allocation up to S$1 million per auction.

The Laddering Strategy

With mixed signals across tenors, a laddering approach makes strategic sense:

1. Short rung (6-month, ~30%): Allocate to 6-month T-Bills for liquidity. Even at 1.37%, this outperforms most savings accounts.
2. Medium rung (1-year, ~50%): Lock in the more attractive 2.95% rate for a larger allocation.
3. Rolling reinvestment: As each rung matures, evaluate current auction yields and adjust.

This avoids being locked into a single rate and gives you flexibility to shift as yields evolve. For comparison, the more flexible Singapore Savings Bonds offer penalty-free early withdrawal, which can complement a laddering strategy. The official CPF Investment Scheme (CPFIS) page has more details on using your OA and SA funds for T-Bill investments.

Cash Parking During Market Uncertainty

For investors sitting on cash waiting for better opportunities — a market pullback, a REIT entry point, or a more favourable USD/SGD rate — T-Bills offer a superior alternative to leaving funds idle in a savings account. The 1.37% 6-month yield beats most high-interest savings account rates, with the added security of Singapore Government backing. Funds are available at maturity or can be sold in the secondary market if needed earlier.

Competitive vs Non-Competitive Bidding

When applying for T-Bills, non-competitive bids are the simpler choice for retail investors: you accept the auction-determined yield and are guaranteed full allocation up to S$1 million. Competitive bids let you specify a minimum yield but risk non-allocation if your bid is too aggressive. For most retail investors, the certainty of non-competitive bidding outweighs the slight potential yield advantage.

Comparing T-Bill Alternatives

Singapore Savings Bonds (SSBs)

SSBs offer an attractive alternative for those who value flexibility over maximum short-term yield. Unlike T-Bills, SSBs have no penalty for early redemption — you can withdraw principal at any time (forfeiting only accrued interest in the first year). Current SSB rates are competitive with T-Bills, and the step-up structure rewards longer holding periods up to 10 years.

Best for: Medium-term savers (2-5 years) and emergency fund allocations where liquidity is paramount.

Fixed Deposits

Singapore banks occasionally offer promotional fixed deposit rates that beat T-Bill yields, especially during deposit campaigns. The advantage: simplicity, clear terms, no auction process. The disadvantage: rates revert lower once promotions end. For a detailed comparison, see our Singapore T-Bills vs Fixed Deposits 2026 breakdown.

Dividend Stocks and REITs

For investors comfortable with market risk, Singapore dividend stocks and REITs offer yields of 4-7% — significantly above T-Bills. Blue-chip names like DBS (SGD 0.60/quarter dividends) and Keppel DC REIT continue delivering reliable payouts. The trade-off is capital volatility: unlike AAA-rated T-Bills, stocks can lose value in corrections. For long-term investors, the superior dividend income often compensates for the risk. See our guide on 3 Singapore Dividend Stocks to Buy in June 2026.

How They Stack Up

For Singapore investors, understanding where T-Bills sit on the risk-return spectrum helps with portfolio construction:

• T-Bills: 1.37-2.95% — Virtually risk-free, government-guaranteed
• SSBs: 2.5-3.2% — Flexible, no penalty exit
• Fixed Deposits: 1.5-3.0% — Simple but rate-dependent
• Corporate Bonds: 3.0-5.0% — Credit risk requires due diligence
• REITs: 4.0-7.0% — Market volatility, but higher income
• Dividend Stocks: 3.5-7.0% — Best long-term returns with higher risk

Frequently Asked Questions

Q1: How do I apply for Singapore T-Bills?
Apply through DBS, OCBC, or UOB digital banking. You'll need an SGS account (your bank can help set this up). Minimum investment is S$1,000 with S$1,000 increments. Check MAS's auction calendar for upcoming dates.

Q2: Are T-Bill earnings taxable?
No. Interest from Singapore T-Bills is tax-free for individual investors — a key advantage over corporate bonds or foreign fixed deposits.

Q3: Can I sell before maturity?
Yes, through the secondary market via your bank. However, if yields have risen since your purchase, you may receive slightly less than face value.

Q4: T-Bills vs Singapore Savings Bonds — which is better?
T-Bills are better for short-term cash parking (6-12 months). SSBs suit medium-term savings (2-10 years) with penalty-free withdrawal. Many Singapore investors use both in combination.

Q5: Can I use CPF to buy T-Bills?
Yes, through CPFIS with your agent bank. This works best for OA funds (2.5% base vs 2.95% T-Bill yield). SA funds (4.08%) are better left in CPF.

Q6: What happens to existing T-Bills if rates rise?
New auctions offer higher yields. Existing T-Bill secondary market prices adjust slightly, but if held to maturity you receive full face value. Price fluctuations only matter if you sell early.

Conclusion: T-Bills Still Belong in Your Portfolio

Despite declining yields, T-Bills serve three strategic purposes:

1. Capital preservation. When markets turn turbulent — and history says they will — having a T-Bill allocation means dry powder to deploy when opportunities arise.
2. Portfolio stabilisation. T-Bills reduce portfolio drawdown during equity corrections, helping you stay invested through volatility rather than panic-selling at the bottom.
3. Emergency fund upgrade. Instead of keeping emergency savings in a 0.05% account, T-Bills earn meaningful interest on your safety buffer while keeping funds accessible within months.

A practical rule of thumb: keep 5-10% of your portfolio in T-Bills (or SSBs) as a liquidity buffer, scaling up to 30-40% as you approach retirement. For more on risk-adjusted returns across asset classes, check out our comparison of Singapore REITs vs US Cash ETFs vs T-Bills.

Singapore T-Bills in 2026 offer a nuanced picture: declining short-term yields but still-sensible 1-year rates that outpace bank deposits and CPF OA. While they're no longer the standout opportunity of 2023-2024, T-Bills remain a cornerstone of conservative Singapore portfolios — delivering safety, tax efficiency, and strategic value that goes beyond their headline yield.

The key takeaway: T-Bills aren't about getting rich — they're about staying rich. In a shifting rate environment, a diversified fixed-income strategy that includes T-Bills, SSBs, and dividend-paying equities keeps your portfolio grounded and your options open.

Get started with your cash strategy today. Compare Singapore T-Bills vs Fixed Deposits for your next investment cycle, then consider whether laddering across tenors could improve your overall yield.

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Disclaimer: This article is for informational and educational purposes only. This is not financial advice. All investments carry risk, including potential loss of principal. Past performance does not guarantee future results. Please consult a licensed financial adviser before making investment decisions. Data sourced from: MAS official publications, Business Times (April 2026), and Singapore bank documentation (DBS, OCBC, UOB). Some yield data is drawn from the April 2026 reporting period and may not reflect the absolute latest auction results.

Singapore T-Bills

Singapore T-Bills vs Fixed Deposits 2026: Where Should You Park Your Cash?

By TY → Sunday, June 7, 2026

Singapore currency — choosing between T-Bills and fixed deposits for your cash. (Royalty-free image from Pexels)

Singapore T-Bills vs Fixed Deposits 2026: Where Should You Park Your Cash?

If you're a Singapore investor deciding where to park your cash in mid-2026, the two safest options are Singapore T-Bills and fixed deposits (FDs) . Both are capital-guaranteed and backed by stable institutions — but their returns have diverged meaningfully as the interest rate cycle shifts.

As of April 2026, Singapore T-Bill 1-year yields sit at 2.95% , while the 6-month T-Bill yields 1.37%. By contrast, promotional fixed deposit rates from local banks hover around 1.05% to 1.15% for 12-month tenures. That's a yield gap of nearly 2 percentage points.

This post compares Singapore T-Bills vs fixed deposits in 2026, covering rates, liquidity, tax treatment, CPF usage, and which option suits different financial goals. Whether you're building an emergency fund, optimising your CPF OA, or simply looking for a safe harbour during uncertain markets, this guide will help you make an informed call.

Disclaimer: Not financial advice. This article is for informational purposes only. Please consult a licensed financial adviser for personalised recommendations.

T-Bill vs Fixed Deposit Rates in June 2026

Current T-Bill Yields: Based on the latest Monetary Authority of Singapore (MAS) data from April 2026, the 1-year T-Bill yields 2.95% (up from 2.71% in October 2025), while the 6-month T-Bill yields 1.37% (down from 1.41% in late 2025). The yield curve remains mildly inverted — longer-dated T-Bills pay more than shorter ones — signalling market expectations of rate cuts ahead.

Current Fixed Deposit Rates: Based on published promotional rates from local banks like OCBC Bank, 12-month online FDs offer 1.10% p.a. (min S$20,000) and 18-month online FDs offer 1.15% p.a. Board rates at DBS and UOB are typically lower at 0.80%–1.00%. Rates change frequently, so check your bank's current offerings.

The Yield Gap: On a S$20,000 investment over 12 months, a 1-year T-Bill at 2.95% earns S$590 in interest versus S$230 from the best FD — that's S$360 more, or over 2.5 times the return. Scale that up: on S$100,000, the gap widens to S$1,800 annually. Even on the minimum T-Bill investment of S$1,000, the difference is S$29.50 versus S$11.50 — every bit counts when rates are falling. For investors comfortable with bi-weekly auctions, T-Bills offer a meaningfully better return. See our comparison of T-Bills vs REITs and US Cash ETFs for the broader picture across asset classes.

Key Differences: Safety, Tax, and Liquidity

Safety: Both are exceptionally safe, but there is a key difference in how they're protected. T-Bills are backed by the full faith and credit of the Singapore Government (AAA credit rating) with no cap on the guarantee — every dollar you invest is protected. Fixed deposits are insured by the Singapore Deposit Insurance Corporation (SDIC) up to S$100,000 per depositor per bank. Any amount above S$100k is not insured.

This distinction matters if you're sitting on a large cash balance — from selling a property, receiving a bonus, or simply accumulating savings over time. With T-Bills, you can invest S$500,000 with the same government guarantee as S$5,000. With FDs, you'd need to split across multiple banks to stay within SDIC limits.

Tax Treatment: T-Bill interest is tax-free for individual Singapore investors per IRAS guidelines. Fixed deposit interest is taxable as personal income, though most residents below ~S$22,000 annual income pay zero tax. High-income earners get a bigger after-tax advantage from T-Bills.

Liquidity and Access: T-Bills can be sold on the secondary market before maturity through a broker, though you may get less than par value if rates have moved. Fixed deposits forfeit all accrued interest on early withdrawal, and some banks charge a small penalty fee. For sheer convenience, FDs win hands-down — you can place them in minutes via digital banking, 24/7. T-Bills require planning: you need to submit bids before auction deadlines through your bank's investment portal.

CPF Investment Scheme: T-Bills are CPFIS-approved — using CPF OA funds at 2.95% beats the standard Ordinary Account rate of 2.5%. This makes T-Bills one of the simplest ways to enhance your CPF returns without taking on equity risk. CPF time deposits exist but typically offer lower rates than regular promotional FDs. For other CPFIS-eligible options beyond T-Bills, see our dividend stocks guide for inflation protection.

Which Option Is Right for You?

Go with T-Bills if you want maximum safe yield (2.95% beats every FD rate), you're investing over S$100,000 and want full government guarantee without insurance caps, you're a higher-income earner who benefits from tax-free interest, or you're using CPF OA funds to earn above the standard 2.5% OA rate.

Go with fixed deposits if you need instant placement and can't wait for the next bi-weekly auction cycle, you prefer simplicity with no bidding mechanics to learn, you're placing under S$100k where SDIC insurance already covers you fully, or you want shorter tenures of 3-9 months that T-Bills simply don't offer.

A Note on Auction Mechanics: Investing in T-Bills means participating in MAS bi-weekly auctions. You submit either a non-competitive bid (accept the market-determined yield, guaranteed allocation) or a competitive bid (specify a minimum yield, risk of partial allocation). Funds are deducted on auction day, and the T-Bill is issued a few days later. It's straightforward once you've done it once, but it does require a few more steps than placing an FD.

Hybrid Strategy: Many smart Singapore investors use both products in tandem. Put T-Bills in the core of your cash allocation (especially over S$100k), use FDs for shorter tenures or quick deployment, and build a T-Bill ladder by buying 6-month T-Bills monthly for a rolling income stream while keeping some funds in FDs for emergency access. This blended approach gives you the best of both worlds.

Conclusion and Next Steps

Singapore T-Bills are the clear winner in the current rate environment for investors who can manage bi-weekly auctions. The 2.95% yield on 1-year T-Bills versus ~1.10% on comparable FDs is a gap too wide to ignore. Even a partial shift from FDs to T-Bills can meaningfully boost your interest income without taking on additional risk.

Ready to start? Check the next T-Bill auction on the MAS SGS page or log into your bank's investment portal to place your first bid. At 2.95% for 1-year T-Bills, letting cash sit idle in a savings account earning near-zero interest is literally leaving hundreds of dollars on the table. Even a partial allocation to T-Bills can meaningfully boost your overall portfolio yield without taking on additional risk.

This article is for informational purposes only and does not constitute financial advice. Rates as of June 2026, subject to change

FAQ — Quick Answers

• Are T-Bills safer than FDs? Both are extremely safe. T-Bills have no guarantee cap. FDs are SDIC-insured up to S$100,000.
• Can I use CPF to buy T-Bills? Yes — 2.95% beats the CPF OA rate of 2.5%. A popular optimisation strategy.
• How often are auctions? Bi-weekly. Apply through your bank before Tuesday deadlines.
• Need money early? T-Bills can be sold on secondary market. FDs forfeit all interest on early withdrawal.
• Which gives better returns? T-Bills — 1-year at 2.95% vs ~1.10% for best FD. A 1.80pp gap.

Sources

• Monetary Authority of Singapore — T-Bill auction results (April 2026)
• Business Times — Yield analysis (April 2026)
• OCBC Bank — FD rates (June 2026)
• CPF Board — CPFIS guidelines
• IRAS — Tax treatment of investment income