T-Bill vs SSB vs Fixed Deposit Singapore 2026: How They Compare

T-bills, Singapore Savings Bonds (SSBs), and bank Fixed Deposits (FDs) are the three main risk-free / very-low-risk savings instruments available to Singapore retail investors in 2026. T-bills are 6-month Singapore Government debt at recent ~2.0–2.5% yields. SSBs are 10-year Government bonds with step-up coupons averaging ~2.3–2.8% over the full holding period. Bank FDs are deposit-insured time deposits, typically ~2.0–3.0% for 3–12 month tenures in 2026. All three have stepped DOWN from the 2022–2023 yield peaks.

This is an educational comparison — no product recommendation, no affiliate links. Each instrument suits a different cash-flow profile. Use the T-Bill Yield Calculator, Fixed Deposit Calculator and SSB tracker to model your specific scenarios.

T-Bill vs SSB vs FD Singapore 2026 — comparison table

How each instrument is structured

Treasury Bills (T-bills)

A 6-month T-bill is sold at a discount to face value. You pay, say, $9,890 today and receive $10,000 at maturity 6 months later — the $110 difference is your yield (~2.2% on an annualised basis).

Auctions are held twice monthly. You can place a non-competitive bid (accept whatever yield the auction clears at, allocation guaranteed up to the auction amount available for non-competitive) or a competitive bid (specify the maximum yield you'd accept, no allocation guarantee).

For most retail investors, non-competitive bidding is the default — it ensures allocation without yield optimisation.

12-month T-bills are also issued occasionally (recent years have seen reduced 12-month issuance vs the more common 6-month).

Singapore Savings Bonds (SSBs)

SSBs have a step-up coupon structure over the 10-year holding period — the coupon paid in year 10 is higher than in year 1. The published "10-year average yield" is the geometric mean across all 10 years if held to maturity.

Critically: SSBs can be redeemed in any month without penalty (you receive your principal plus pro-rated interest earned to date). This makes SSBs functionally a 10-year bond with monthly liquidity — unusual for any government security globally.

The catch: the early-year coupons are typically lower than the 10-year average. Redeeming after only 1–2 years means you earn closer to the 1-year coupon rate, not the headline 10-year average.

Maximum holding per individual: $200,000 across all SSBs (cumulative). New issuances each month are subject to total demand allocation.

Bank Fixed Deposits (FDs)

Bank FDs are time deposits — you commit a sum for a fixed tenure at a fixed rate. Early withdrawal typically forfeits accrued interest but preserves principal.

Bank promo FD rates vary weekly to monthly, depending on:

• The bank's funding needs (banks raise rates when they want more deposits)
• The deposit amount tier (often higher rates for $50K+ or $100K+)
• The tenure (rates can be U-shaped — 6-month sometimes higher than 12-month)

SDIC insurance covers up to $100,000 per depositor per bank across all SGD-denominated deposits (including CASA and FD). For deposits above $100K, splitting across multiple banks is standard practice.

Yield comparison — recent trajectory (illustrative)

All three instruments have trended DOWN from the 2022–2023 peaks as global central banks (Fed, ECB) cut policy rates and SORA followed. The current yield range remains attractive vs CASA (basic savings) but well below the 4% CPF Special / Retirement Account rate.

Always verify current yields directly: T-bills on the MAS / SGS website (latest auction result), SSBs on the SGS bonds page (current month issuance), FDs on each bank's promotional page.

Which suits which cash-flow profile?

This is the framework, not a recommendation:

Money you'll need within 6 months → T-bill or short-tenure FD. The 6-month T-bill locks in a known yield; a 3-month FD gives faster access. T-bills typically yield slightly less than the 6-month T-bill at competitive bid (though FD promo can beat them).

Money you don't need for 1–3 years → bank FD with matching tenure. A 24-month FD locks the rate against future declines. Ladder multiple tenures to balance reinvestment risk.

Long-term horizon, want flexibility → SSB. The 10-year cap provides longest-duration risk-free exposure with monthly redemption. Step-up coupons reward holding longer.

CPF OA funds → T-bill (via CPFIS-OA). SSB is not CPFIS-eligible. CPF OA earns 2.5% baseline — if a T-bill at non-competitive auction clears above 2.5%, the spread (minus the auction fee) is your CPFIS-OA upside vs leaving the funds idle.

What can go wrong (the risks each instrument carries)

T-bill risks:

• Reinvestment risk — rolling every 6 months means the next yield could be lower than the current. If rates trend down across multiple rollover cycles, your effective long-term return drops.
• Secondary market price risk — if you sell before maturity, market price varies (though for 6-month tenor the swing is small).

SSB risks:

• Early-redemption opportunity cost — redeeming in year 1 earns roughly the year-1 coupon, not the 10-year average. Plan to hold for at least 3–5 years to capture meaningful step-up benefit.
• Inflation risk — even step-up coupons may not match high-inflation periods.

FD risks:

• Early-withdrawal forfeiture — interest accrued is forfeited (principal preserved).
• Bank-specific credit risk — covered by SDIC up to $100K per depositor per bank. Above that, exposure to the bank's credit.
• Foreign-currency FDs carry exchange-rate risk on top — appropriate only if you have a future need in that currency.

How CPF OA Investment Scheme (CPFIS-OA) handles T-bills

CPF Ordinary Account funds can be used to bid T-bills via the CPFIS-OA framework. Mechanics:

• $20,000 must remain uninvested in OA (cannot be used for CPFIS)
• Above that floor, you can bid T-bills at non-competitive auctions through DBS, OCBC, or UOB CPFIS-OA platforms
• T-bill matures back into your CPFIS-OA account; you can roll into the next auction
• Returns above the OA 2.5% baseline are your net upside (after any fees)

SSBs are NOT on the CPFIS-OA approved list — cash-only for SSB purchases.

Related calculators

• T-Bill Yield Calculator — model T-bill discount yield at different bid prices
• Fixed Deposit Calculator — annualised return on FD at given rate
• SSB Yield Tracker — current and historical SSB issuance yields
• CPF Contribution Calculator — model CPF OA balance for CPFIS planning

Sources

• MAS / SGS — T-bill auction results (sgs.gov.sg)
• MAS / SGS — Singapore Savings Bonds issuances and historical coupons
• Singapore Deposit Insurance Corporation (SDIC) — coverage scope ($100K per depositor per bank)
• Individual bank Fixed Deposit promotional pages (illustrative ranges only; verify current rates directly with each bank)
• IRAS — Tax treatment of savings interest and government securities (individual taxpayers)

Note: This article is educational. It does not constitute financial advice or a product recommendation. Yields are auction- and market-determined and change frequently. Always verify current yields directly with MAS, SGS, or the issuing bank before making a decision. SmartCalculator.sg does not provide affiliate links to T-bill, SSB, or FD products.