How to Buy Bonds in Singapore 2026: T-Bills, SSB, Corporate

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Quick answer

Singapore retail investors can choose from four main bond types in 2026 — Singapore Savings Bonds, Treasury bills, conventional SGS bonds, and SGX-listed corporate bonds — running from lowest to highest risk in that order. SSBs are the most flexible option, letting you redeem your principal at par any month without penalty, but they do not accept CPF funds; T-bills suit short-term cash parking and are eligible for both CPF-OA and CPF-SA investment.

The numbers at a glance

Singapore Savings Bonds: the flexible safe option

Singapore Savings Bonds are issued monthly by the Monetary Authority of Singapore and designed specifically for individual investors. The interest rate follows a step-up structure: the longer you hold, the higher the blended return over the full ten-year period. Interest is credited directly to your designated bank account every six months — you do not need to do anything to collect it.

The minimum subscription is $500, in $500 increments, and each individual can hold up to $200,000 in SSBs at any one time across all outstanding issues. Applications open during a monthly window, typically in the third or fourth week of the month, through DBS, OCBC, or UOB internet banking or ATMs. You will need an individual CDP Securities account linked to your bank account to receive the bonds.

The defining feature of SSBs is flexibility. If you need your money back before the ten years are up, you can submit a redemption request in any month and receive the full face value of your investment — there is no penalty for early redemption, though a small transaction fee applies. This makes SSBs more forgiving than most fixed-income products.

One important restriction: SSBs cannot be purchased using CPF funds. If you have SRS savings you want to deploy in bonds, SSBs are eligible and can be applied through your SRS operator bank. For investors who want a straightforward, low-risk savings instrument with no lock-in, SSBs are typically the easiest starting point.

T-bills: short-term cash parking

Treasury bills (T-bills) are short-dated government securities with tenors of either six months or one year. Unlike coupon bonds, T-bills use a discount structure: you pay less than the $1,000 face value at auction, and you receive the full $1,000 at maturity. The difference is your return. The six-month T-bill cut-off yield for the April 2026 auction was approximately 1.4% per annum.

When you apply for a T-bill, you can place either a competitive bid (you specify the yield you are willing to accept) or a non-competitive bid (you accept whatever cut-off yield is set at the auction). For most retail investors, a non-competitive bid is simpler — you are guaranteed an allocation at the cut-off rate, whereas a competitive bid at too high a yield may not be filled.

Applications are made via DBS, OCBC, or UOB internet banking, or through brokerage accounts. The key advantage of T-bills over SSBs is CPF eligibility: you can use CPF-OA or CPF-SA savings to purchase T-bills through the CPFIS, provided you meet the standard CPFIS eligibility requirements. SRS funds are also accepted.

The trade-off is less flexibility. T-bills do have a secondary market, but liquidity for retail holders is limited and you may receive below face value if you need to sell early. For cash you are confident you will not need for six months, T-bills are an efficient and very safe place to park it.

SGS bonds: tradeable government bonds

Conventional Singapore Government Securities (SGS) bonds are the long-end of the government bond market, with tenors ranging from two to thirty years. Unlike T-bills, SGS bonds pay a fixed semi-annual coupon — a stated interest rate applied to the face value, paid every six months until maturity, at which point you receive your principal back.

SGS bonds are listed and tradeable on the SGX, which means you can buy and sell them on the secondary market before maturity. This gives more exit options than T-bills, but introduces interest rate risk: if you sell a bond before maturity and market interest rates have risen since you bought it, the bond's price will have fallen below your purchase price and you may receive less than you paid. If you hold to maturity, you receive face value in full.

SGS bonds are eligible for CPF investment under the CPFIS (both OA and SA) and for SRS investment. They are better suited to investors who want a longer-term fixed income allocation and are comfortable with some secondary market price movement, or who intend to hold to maturity and want a government-backed coupon income stream.

Corporate bonds: higher yield, higher risk

SGX-listed retail corporate bonds allow individual investors to lend money to companies in exchange for a fixed coupon. Board lots are typically $1,000 to $5,000. You buy them through a standard brokerage account and hold them in your CDP account, just as you would shares.

The appeal is yield: corporate bonds generally offer higher interest rates than equivalent government bonds because they carry credit risk — the risk that the issuing company is unable to repay. The higher the perceived credit risk, the higher the yield demanded by investors.

Corporate bonds are not appropriate for investors whose primary goal is capital preservation. Before buying, review the issuer's credit rating, the bond's seniority in the capital structure, and the liquidity of the bond on the secondary market. Many SGX-listed bonds trade thinly, meaning it may be difficult to sell at a fair price before maturity.

CPF and SRS: using retirement funds to buy bonds

If you want to put your retirement savings to work in bonds, the rules differ depending on which pot of money you are using.

CPF (CPFIS): Both T-bills and conventional SGS bonds are eligible investments under the CPF Investment Scheme using either your Ordinary Account or Special Account. You must meet the standard CPFIS requirements — for OA investments, you need at least $20,000 in your OA before you can invest the excess; for SA investments, the threshold is $40,000. SSBs are explicitly excluded from CPFIS, so if someone tells you they used CPF to buy SSBs, that is not possible.

SRS: The Supplementary Retirement Scheme allows contributions up to $15,300 per year for Singapore Citizens and Permanent Residents (lower for foreigners), and these contributions are tax-deductible. SRS funds can be used to buy SSBs, T-bills, and SGS bonds. Holding bonds inside SRS defers the tax on any returns until withdrawal, when only 50% of the withdrawn amount is taxable. For investors in higher income tax brackets who are actively contributing to SRS, using SRS savings for bond purchases is an efficient structure.

The interaction of CPF eligibility and bond type is one of the most common sources of confusion — the short version is: SSBs accept SRS but not CPF; T-bills and SGS bonds accept both.

When to use the SSB Calculator

Choosing the right bond type is only the first decision. The next question is how much you should allocate and what return to expect over your intended holding period. For SSBs, the step-up structure means your effective return depends heavily on how long you actually hold — redeeming in year two gives you a materially different blended yield than holding through year ten.

The SSB Calculator lets you enter the current month's SSB interest schedule and your planned holding period, and it calculates the total interest you will earn and your effective annualised return. This is especially useful when comparing SSBs against T-bill yields or fixed deposit rates, where the comparison is not straightforward because the instruments have different structures and tenors. Run the numbers before you apply — a five-minute calculation often changes the conclusion.

Common mistakes and pitfalls

Trying to buy SSBs with CPF. This is the single most common misconception. SSBs are not CPFIS-eligible. If you want to deploy CPF savings in government bonds, use T-bills or SGS bonds instead.

Placing a competitive T-bill bid without understanding the cut-off risk. If you specify a yield that is above the auction cut-off, your bid is not filled — you get no allocation at all. For most retail investors, a non-competitive bid is the right approach.

Forgetting the SSB early redemption fee. Redeeming SSBs before maturity is penalty-free in terms of principal, but MAS charges a small transaction fee (currently $2). This is minor, but relevant if you plan to redeem frequently.

Selling SGS bonds early when interest rates have risen. SGS bond prices fall when interest rates rise. If you bought a long-dated SGS bond and need cash before maturity in a higher-rate environment, you may take a capital loss. Plan your holding period before you buy.

Assuming corporate bond liquidity. Many SGX-listed retail bonds trade in very small daily volumes. If you need to sell before maturity, you may have to accept a significant discount to fair value, or find no buyers at all. Only hold corporate bonds to maturity unless liquidity risk is acceptable to you.

Bottom line

Singapore retail investors have a clear ladder of government bond options in 2026. For flexibility above everything else, Singapore Savings Bonds are the right choice — redeem at par any month, earn step-up interest, and apply in minutes through your internet banking app. For short-term cash parking with CPF or SRS funds, six-month T-bills offer a clean, safe, and competitive yield. SGS bonds extend the same government credit quality to longer tenors and secondary market tradability for investors who want a coupon income stream. Corporate bonds offer higher yields in exchange for credit and liquidity risk, and are best suited to investors who have already established a base in government bond instruments.

Before you apply for your first SSB, use the SSB Calculator to compare the step-up interest schedule against current T-bill and fixed deposit rates for your actual intended holding period — the right answer depends on your timeline.

FAQ

What is the safest way to invest in bonds in Singapore?

Singapore government bonds — SSBs, T-bills, and SGS bonds — are among the safest investments available because they are backed by the full credit of the Singapore government, which carries a AAA credit rating. For most retail investors, Singapore Savings Bonds offer the simplest entry point: you buy through internet banking with major local banks, earn step-up interest over ten years, and can redeem your principal in full at any time without penalty. If you want near-zero risk with a short time horizon, six-month T-bills are an equally safe option for parking cash.

Can I use CPF to buy Singapore Savings Bonds?

No. Singapore Savings Bonds are not eligible for the CPF Investment Scheme (CPFIS), which means you cannot use CPF-OA or CPF-SA funds to subscribe for them. You can, however, use Supplementary Retirement Scheme (SRS) funds to buy SSBs through your SRS operator bank. If you specifically want to invest CPF savings in government bonds, T-bills and conventional SGS bonds are the eligible instruments — both can be purchased using CPF-OA or CPF-SA through the CPFIS, subject to standard CPFIS eligibility requirements.

What is the difference between an SSB and a T-bill?

The key differences are flexibility, tenor, and CPF eligibility. SSBs are ten-year instruments with step-up interest that rewards longer holding, but you can redeem at par any month penalty-free — ideal for investors who want optionality. T-bills are short-term (six months or one year), use a discount structure instead of paying a coupon, and mature at face value. T-bills also accept CPF-OA and CPF-SA funds, whereas SSBs do not. Recent six-month T-bill cut-off yields have been around 1.4% per annum (April 2026 auction), while SSB rates are set monthly and typically reflect longer-term government rates.

How do I apply for Singapore Savings Bonds?

Applications open during a monthly window announced by MAS, usually in the third or fourth week of the month. You apply through the internet banking portals or ATMs of DBS, OCBC, or UOB using your linked CDP account. The minimum application is $500, in $500 increments, up to a personal limit of $200,000. SRS-funded applications are made through your SRS operator bank. Results are announced around the end of the application window, and the bonds are issued on the first business day of the following month. Interest is paid directly into your designated bank account every six months.

Can I lose money on Singapore government bonds?

For SSBs and T-bills held to maturity, the answer is no — you receive your full principal back. SSBs go further: even if you redeem early, you get par value back (a small $2 redemption fee applies). The risk profile changes if you buy conventional SGS bonds and sell them on the secondary market before maturity — SGS bond prices move inversely with interest rates, so selling when rates have risen means receiving less than face value. Corporate bonds carry additional credit risk: the issuer could default. For retail investors holding SSBs or T-bills to maturity, capital loss is not a meaningful risk.