SSBs, T-bills, and fixed deposits are the three go-to homes for safe, capital-stable money in Singapore. SSBs and T-bills are issued by the Singapore Government (effectively credit-risk-free); fixed deposits are bank products protected by the Singapore Deposit Insurance Corporation (SDIC) up to a per-depositor, per-bank limit. They differ most in how you get your money out early, how the yield is set, and which pots of money (cash, CPF, SRS) you can use. Rates on all three move with the interest-rate cycle, so the relative winner shifts over time and you should always check the latest figures before committing. This guide breaks down all three so you can match each to a job in your portfolio.
| SSB | T-Bill | Fixed Deposit | |
|---|---|---|---|
| Issuer / backing | Singapore Government (SGS) — effectively credit-risk-free | Singapore Government (SGS) — effectively credit-risk-free | Commercial bank, SDIC-insured up to a per-depositor, per-bank limit |
| Tenure | 10 years (redeem any month) | 6 months or 1 year | Typically 1 month to 3 years |
| Yield mechanics | Step-up — coupon rises each year you hold; pegged to average SGS yields the month before issue (as of 2026, MAS) | Single cut-off yield set at auction; the bill is issued at a discount to face value | Single fixed promotional rate for the chosen tenure |
| Early exit | Redeem any month at full principal plus accrued interest, no penalty (about one month to process) | Sell on the SGX secondary market — price varies with rates, liquidity is limited | Break the deposit early — usually forfeit accrued interest, principal returned |
| Minimum amount | S$500 (as of 2026, MAS) | S$1,000 (MAS) | Varies by bank; best promos often need a minimum sum (commonly tens of thousands) |
| Maximum / cap | S$200,000 total outstanding per individual (as of 2026, MAS) | None per auction | None, but only deposits within the SDIC limit are insured per bank |
| Issuance / availability | New issue every month | 6-month and 1-year on the MAS issuance calendar (check current cadence) | Available continuously; rates change with bank promotions |
| CPF eligibility | No (CPF cannot be used for SSBs) | Yes — CPF OA via CPFIS-OA (with a roughly 1-month interest gap each side); see caveat below | No — ordinary bank FDs are not covered under the CPF Investment Scheme |
| SRS eligible | Yes | Yes | Some banks offer SRS-linked FDs; ordinary FDs are cash-only |
| Capital safety | Government-backed — principal returned in full | Government-backed — full face value at maturity | SDIC insures deposits up to S$100,000 per depositor, per bank (since 1 April 2024, SDIC); amounts above that are not covered |
| Interest payment frequency | Every 6 months until you redeem or it matures | Paid up front as the discount at issue — you buy below face value and receive the full face value at maturity | Usually at maturity, or periodically depending on the bank's terms |
| Tax on interest | Tax-exempt for individuals | Tax-exempt for individuals | Tax-exempt for individuals (Singapore-source bank deposit interest) |
Use all three for different jobs, and let the rate cycle decide the mix. Keep your redeemable safety net (3 to 6 months of expenses) in SSBs, since you can withdraw any month with no penalty and get full principal back. Put cash you will not need for 6 to 12 months into T-bills to lock a single fixed yield. Use a fixed deposit when a bank promo rate beats the current T-bill yield and you value simplicity over flexibility — just keep each bank's balance within the SDIC limit. On CPF OA and T-bills: CPF OA can buy T-bills, but this only earns more than leaving the money in OA when the T-bill cut-off yield is above the OA floor rate, which is not always true — check the latest MAS cut-off yield against your OA rate first, because moving CPF OA in when yields are below the floor would reduce your returns. Because SSB coupons, T-bill cut-off yields, and FD promo rates all move with the interest-rate cycle, compare the latest figures side by side from the MAS / SGS website (SSBs and T-bills) and individual bank pages (FDs) before each decision.
SSBs and T-bills are both issued and backed by the Singapore Government, so they carry effectively no credit risk and return your principal in full. Fixed deposits are bank products protected by the Singapore Deposit Insurance Corporation (SDIC) up to S$100,000 per depositor, per bank (the limit was raised from S$75,000 to S$100,000 on 1 April 2024) — amounts above that limit, or a bank failure, are not covered beyond it. For very large balances, the government instruments avoid the per-bank cap entirely. Note that SRS deposits and CPF Investment Scheme monies are insured separately under their own S$100,000 buckets, so they do not eat into your ordinary deposit coverage.
SSBs are the most flexible — you can redeem in any month with no penalty and get your full principal plus accrued interest back, taking about one month to process. T-bills can only be exited early by selling on the SGX secondary market, where the price moves with interest rates and liquidity is limited. Fixed deposits can usually be broken early, but you typically forfeit all or most of the accrued interest, though your principal is returned.
T-bills can be bought with cash, SRS, and CPF — both Ordinary Account (OA) and historically Special Account (SA) via the CPF Investment Scheme (CPFIS). Note that, as of 2025, the CPF Special Account is being closed for members aged 55 and above, and affected members can no longer use SA for new SGS or T-bill purchases — verify your eligibility with the CPF Board. SSBs can be funded with cash or SRS only, not CPF. Ordinary bank fixed deposits are generally cash-only and not eligible under CPFIS, though some banks market SRS-linked fixed deposits. Separately, CPFIS-OA requires you to keep the first S$20,000 of your OA un-invested (as of 2026, CPF Board).
No. CPF OA can buy T-bills, but it only earns you more than leaving the money in OA when the T-bill cut-off yield exceeds the OA floor rate. When cut-off yields fall below that floor, moving CPF OA into T-bills would reduce your returns, not increase them. There is also a roughly one-month CPF interest gap on each side of the holding period that further reduces any benefit. Check the latest cut-off yield on the MAS / SGS website against your current OA rate before using CPF OA — do not assume the spread is always positive.
Yields move with the interest-rate cycle and are not fixed across time. Recent T-bill cut-off yields, the first-year SSB coupon, and bank FD promotional rates have at times clustered in a similar range, with the relative winner shifting from issue to issue. There is no single official figure for FD promo rates — they vary by bank, tenure, and deposit size. Always check the latest figures from the MAS / SGS website (for SSBs and T-bills) and individual bank promotions (for FDs) before committing, rather than relying on any stated number.
A common approach is to hold SSBs as a penalty-free buffer for money you might need at short notice, T-bills for cash (or eligible CPF OA) you can lock for 6 to 12 months at a fixed yield, and a fixed deposit when a bank promo rate beats the current T-bill yield and you prefer the simplicity of holding to maturity. Keep each fixed deposit within the S$100,000 SDIC limit per bank, and re-check the relative rates each cycle since the best option changes over time.
No, T-bills do not pay a coupon. They are sold at a discount to their face value and redeemed at full face value at maturity, so your return is the difference. For example, buying a 6-month T-bill below S$100 of face value and receiving the full S$100 back six months later is how the yield is realised. Because the price is set at auction, you only learn the exact discount after the auction closes — a non-competitive bid simply accepts whatever the cut-off yield turns out to be.
SSBs start at S$500 and go up in multiples of S$500, capped at S$200,000 total holdings per individual (as of 2026, MAS). T-bills require a minimum of S$1,000 and rise in multiples of S$1,000, with no per-investor cap (MAS). Fixed deposits vary widely by bank — some entry-level promos start from a few hundred dollars, but the headline rates often need a minimum sum (commonly in the tens of thousands) and may require fresh funds not already with the bank.
Generally no — both mature and return cash that then sits idle unless you act. A T-bill matures at the end of its 6- or 12-month term and the proceeds are returned to your settlement account; you have to place a new bid at the next auction if you want to stay invested, so plan around the MAS issuance calendar. Many fixed deposits auto-renew at the prevailing (often lower, non-promotional) rate unless you opt out, so check the renewal terms or you may quietly roll into a worse rate. SSBs are different again: they simply keep stepping up each year until you redeem or they mature at year 10.