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Singapore Savings Bonds vs T-bills

EugeneBy Eugene
2
government-backed ways to park cash — same safety, very different flexibility.

Both Singapore Savings Bonds (SSBs) and Treasury Bills (T-bills) are issued by the Singapore Government, so both are about as low-risk as an investment gets. But they work differently, and the right one depends on your time horizon and how much flexibility you want.

What each one is

Singapore Savings Bonds are long-dated (up to 10 years) but flexible. Interest steps up the longer you hold, and you can redeem in any month with no penalty and get your capital back plus accrued interest. A new issue is offered every month.

Treasury Bills are short-dated — 6-month or 1-year. You buy them at a discount to face value and receive the full face value at maturity; the difference is your return. They are sold by auction, and you generally cannot redeem early (you would have to sell on the secondary market). See the latest Singapore T-bill rates for current cut-off yields.

The key differences

  • Tenor — SSB: up to 10 years, hold as long or short as you like. T-bill: fixed 6-month or 1-year.
  • How the return works — SSB: step-up coupons paid every 6 months. T-bill: a single discount, locked in at auction.
  • Early exit — SSB: redeem any month, no penalty. T-bill: no early redemption; sell on the secondary market if you must.
  • Minimum — SSB: S$500 (multiples of S$500, max S$200,000 held). T-bill: S$1,000 (multiples of S$1,000).
  • Funds you can use — SSB: cash or SRS. T-bill: cash, SRS, and CPF-OA/SA — useful for deploying idle CPF savings.

When to choose which

Pick an SSB if you value flexibility — you are parking money you might need back at short notice, or you want a long-term home for cash you can top up and exit freely. Pick a T-bill if you have a fixed sum you will not need for 6–12 months and want to lock in a known return, or if you want to put CPF-OA funds to work.

CPF tip → T-bills can be bought with CPF-OA/SA funds — a popular way to earn a fixed return on idle CPF savings. SSBs are cash or SRS only. Just weigh it against the CPF interest you'd give up.

Rates on both move with the market. You can see the latest SSB rates, the full step-up schedule and a returns calculator on the Singapore Savings Bonds page, which also projects the likely rate of the next issue.

What they have in common

Both are backed by the AAA-rated Singapore Government, both are bought through DBS/POSB, OCBC or UOB (internet banking or ATM), and the return on either is not taxed in Singapore. They are tools for the safe part of a portfolio — not a substitute for the growth you would seek from dividend stocks or REITs.

Which one?

SSB for flexibility — redeem any month, no penalty. T-bill to lock a known return for 6–12 months, or to put idle CPF-OA to work.

Check this month’s SSB rate →
Eugene
Eugene
A regular Singaporean dad who got tired of cluttered, confusing finance sites
Common questions
+Do Singapore Savings Bonds or T-bills pay more?
It depends on the interest-rate environment — sometimes short-term T-bills yield more than the first-year SSB rate, sometimes less. SSBs reward longer holding via step-up interest, while T-bills lock in a single rate for 6 or 12 months. Check the current SSB rates and recent T-bill cut-offs before deciding.
+Can I use CPF to buy T-bills and Singapore Savings Bonds?
T-bills can be bought with CPF-OA and CPF-SA funds, as well as cash and SRS. Singapore Savings Bonds are bought with cash or SRS (not CPF). This makes T-bills a common choice for deploying idle CPF-OA savings.
+Are Singapore Savings Bonds and T-bills safe?
Both are issued and fully backed by the Singapore Government, which is AAA-rated, so credit risk is minimal. The main practical difference is liquidity: SSBs can be redeemed any month with no penalty, while T-bills are meant to be held to maturity.