T-bills vs SSB vs fixed deposits comes down to when you need the money back. Treasury bills (T-bills) tie it up for six months or a year, Singapore Savings Bonds (SSB) can be redeemed in any month, and fixed deposits pay a bank-set rate for a fixed term. All three pay a known return if you hold to the end, which is why many Singaporeans park cash there that they cannot afford to put at risk.
They are not interchangeable, though. They differ in how long your money is tied up, how the rate is set, what happens if you need cash early, and which pots of money you can use. Here is how to compare them.
T-Bills vs SSB vs Fixed Deposits at a Glance
| T-bills | Singapore Savings Bonds | Fixed deposits | |
|---|---|---|---|
| Issuer | Singapore Government | Singapore Government | Your bank or finance company |
| Tenor | 6 months or 1 year | Up to 10 years | Set by the bank |
| How the rate is set | Auction (cut-off yield) | Fixed by MAS from SGS yields, stepping up yearly | Set by the bank |
| Getting money out early | No early redemption feature | Any month, no penalty | Possible, but may cost interest or a fee |
| Minimum | S$1,000, in $1,000 multiples | $500 | Set by the bank |
| Pay with | Cash, SRS, CPF OA or SA (via CPFIS) | Cash or SRS only | Cash; SRS for some products |
| Protection | Government-backed | Government-backed | Deposit insurance up to $100,000 per depositor per bank |
How T-Bills Work
T-bills are short-term government securities. They are sold at a discount and repay their full face value at maturity. The difference between what you pay and what you get back is your return.
The yield is set by auction. According to MAS, successful competitive bids are filled from the lowest yield upwards, and the highest yield accepted becomes the cut-off yield. Every successful bidder then gets that same cut-off yield.
Most individuals put in a non-competitive bid, which states only the amount. MAS allots these first, up to 40% of the issue. If non-competitive demand exceeds that, allotments are pro-rated and you may get less than you applied for.
A rough illustration (hypothetical yield): at a 2.00% a year cut-off, a $10,000 six-month T-bill would earn about $100 over the six months. The return is locked in at the auction. You do not know it in advance.
How Singapore Savings Bonds Work
Savings Bonds are 10-year government bonds you can cash in any month without a penalty. Their coupons step up each year and are fixed when the bond is issued. MAS bases them on average SGS yields from the previous month.
As a recent example, the December 2026 issue (GX26120A) pays a 1.83% first-year coupon. Its average return is 1.91% a year if you hold for two years, 2.16% for five years and 2.39% for the full 10 years. Applications close at 9pm on 25 November 2026.
Things to know before you apply:
- Each person can hold up to $200,000 in Savings Bonds in total.
- MAS charges a $2 transaction fee for each application and each redemption.
- Redemption money arrives by the second business day of the following month, so allow up to about a month’s delay.
The short version: T-bills suit money you will not touch for six months or a year. Savings Bonds suit money you may need at short notice but could leave for years. Fixed deposits suit people who want a bank-set rate for a fixed period and deposit insurance protection.
How Fixed Deposits Work
A fixed deposit is a bank deposit for a set term at a rate the bank decides. Rates and features vary between banks, and some require a minimum amount to get a promotional rate. Savings accounts are a separate comparison: see how bonus interest savings accounts work.
If you withdraw early, MoneySense warns that you may lose interest or pay a fee. In some cases you could get back less than you put in. Read the early withdrawal terms before you deposit.
Singapore-dollar fixed deposits are covered by deposit insurance up to $100,000 per depositor per Scheme member, combined with your other insured deposits at the same bank.
Using CPF or SRS Money
SRS
All three can be bought with SRS funds through your SRS operator. MAS lists DBS/POSB, OCBC and UOB for SRS applications for T-bills and Savings Bonds.
CPF and T-bills
You can use CPF Ordinary Account (OA) savings for T-bills under CPFIS-OA, but CPF sets conditions:
- You must be at least 18, not an undischarged bankrupt, and have more than $20,000 in your OA. The first $20,000 cannot be invested.
- You need to complete CPF’s Self-Awareness Questionnaire and open a CPF Investment Account with DBS, OCBC or UOB.
- Your OA is debited only if your bid is allotted.
- At maturity, the money goes to your CPF Investment Account, not straight back to your OA. CPF returns it to your OA automatically only after the account has been inactive for two consecutive months.
There is also an interest hurdle. From 1 October to 31 December 2026, the OA earns 2.5% a year, its legislated minimum.
As an illustration, take a hypothetical T-bill paying 2.0%. Moving $20,000 from the OA into it would earn about $400 over a year, compared with $500 if the money had stayed in the OA. Any days the money sits uninvested in the CPF Investment Account widen that gap. Our OA break-even maths works through this in detail.
CPF and Savings Bonds
MAS states plainly that CPF funds cannot be used for Savings Bonds.
A Simple Way to Choose
Ask three questions, in this order.
- When might I need this money? If the answer is “I’m not sure”, the any-month redemption of Savings Bonds is worth something. If you are certain you will not need it for six or 12 months, T-bills or a fixed deposit of matching length fit.
- Which money am I using? CPF OA savings can go only to T-bills, and only if they can beat the 2.5% the OA already pays. Cash and SRS have all three options.
- What rate is on offer right now? Compare the latest T-bill cut-off yield, the current Savings Bond’s average return for your expected holding period, and fixed deposit rates for the same term. Use the same holding period for each.
What To Do Next
- Check the latest T-bill auction results on MAS’s Auctions and Issuance Calendar, and the current Savings Bond issue on the MAS Savings Bonds page.
- If you are thinking about using CPF for T-bills, read CPF Board’s step-by-step guide first, and note the 2.5% OA rate you would give up.
- For fixed deposits, ask the bank for its early withdrawal terms in writing.
