T-bill vs Singapore Savings Bond (SSB)

By MoneyBees

T-bills and SSBs are both government-issued, fully backed by the Singapore Government and effectively credit-risk-free. They became household names when yields spiked above 4% in 2022 – 2023, but rates have since fallen sharply: as of September 2026 the 6-month T-bill cut-off yield was 1.92% and the October 2026 SSB carries a 10-year average return of 2.32% with a first-year coupon of 1.65%. They cover different needs: a T-bill locks in a single short-term yield, while an SSB offers month-by-month liquidity and a step-up coupon schedule that rewards holding longer.

What you're comparing

How they compare

T-bill vs Singapore Savings Bond (SSB)
T-BillSSB
Tenure6 months or 1 year10 years (redeemable any month)
Yield typeSingle fixed cut-off rateStep-up — increases each year
Liquidity before maturitySell on secondary market (price varies)Redeem any month, no penalty
Minimum investmentS$1,000S$500
Per-investor capNone (per auction)S$200,000 total outstanding
Issuance frequency6M every fortnight, 1Y quarterlyMonthly
CPF OA usageYes (with 1-month interest gap each side)No
SRS usageYesYes
Latest yield (September 2026)1.92% (6-month cut-off)2.32% 10-yr avg, 1.65% year 1
Bidding mechanismAuction (competitive / non-competitive)Quota allocation — no bidding
Capital protectionAt maturity; price varies if sold earlyAlways full principal, any month
TaxTax-exempt for Singapore residentsTax-exempt for Singapore residents

Latest T-bill and SSB rates

6-month T-bill auctionCut-off yieldBid-to-cover
2026-09-241.92%1.88
2026-09-101.70%1.97
2026-08-271.60%1.93
2026-08-131.56%2.13
2026-07-301.59%2.11
2026-07-161.55%1.82
SSB issueYear 1 coupon10-year average
2026-10-01 (GX26100Z)1.65%2.32%
2026-09-01 (GX26090V)1.52%2.25%
2026-08-03 (GX26080T)1.46%2.06%
2026-07-01 (GX26070F)1.46%2.11%

Source: Monetary Authority of Singapore. Updated 2026-09-27. Every auction since 2024-10-10

Our take

Use both, but let the rate environment guide the split. Park 3 – 6 months of essential expenses in SSBs as a redeemable safety net. For cash you won't need short-term, compare the live T-bill cut-off yield against the SSB 10-year average before committing — in the high-rate years of 2022 – 2023 short T-bills paid more, but by mid-2026 the SSB 10-year average (~2.11%) had overtaken the 6-month T-bill (~1.47%), so locking in the longer SSB schedule made more sense for money you can leave alone. Crucially, only use CPF OA for T-bills when the cut-off yield clears the 2.5% OA floor after the two-month interest gap; below that, your CPF OA is better left untouched.

Frequently asked questions

Can I use CPF OA for SSBs?

No. CPF OA can be used for T-bills (subject to the 1-month interest gap on each side of the holding period) but not for SSBs. CPF SA cannot be used for either.

What's the SSB step-up schedule?

Each SSB issue has 10 different coupon rates — one for each year. The rates step up over time so that holding for the full 10 years gives an average yield matching the 10-year Singapore Government Bond yield at issue. Redeeming early gives you the average of the years you held.

Can I sell a T-bill before maturity?

Yes — T-bills trade on the SGX secondary market. But liquidity is limited and the price moves with prevailing rates. If rates rise after you buy, your T-bill will sell below par; if rates fall, you can sell above par. Most retail investors hold to maturity.

Are T-bill or SSB yields still as high as 2022 – 2023?

No. Yields have fallen substantially as the global rate cycle turned. The 6-month T-bill cut-off was 1.92% at the 2026-09-24 auction, down from peaks above 4% in late 2022. The October 2026 SSB carries a 10-year average return of 2.32% with a first-year coupon of 1.65%. Always check the live cut-off (auctioned fortnightly for the 6-month) before assuming the older 3% – 4% figures still apply.

How is a T-bill's price worked out from the cut-off yield?

You pay less than face value and get the full face value back at maturity. MAS sets the price from the cut-off yield: price = 100 x (1 - yield x days / 365). At the 24 September 2026 auction, the 6-month bill cut off at 1.92% for 182 days, so each S$100 of face value cost S$99.043. On S$10,000 you pay S$9,904.30 and get S$10,000 back, a gain of S$95.70. You paid less than S$10,000, so the return on your cash is a little above the cut-off yield: about 1.94% a year.

Is there a limit on how much SSB I can hold?

Yes — two caps. There is an individual allotment limit on each monthly issue (it varies per issue and is announced with the offer), and a hard ceiling of S$200,000 in total SSB holdings across all issues at any time. T-bills have no per-investor cap.

What's the difference between a competitive and non-competitive T-bill bid?

A non-competitive bid means you accept whatever the auction cut-off yield turns out to be, and these bids get priority — up to 40% of each issue is set aside for them, so you are far less likely to be scaled down. A competitive bid lets you specify the minimum yield you'll accept, but if you bid too aggressively above the cut-off you get nothing. Most retail investors use non-competitive bids.

How do I actually apply for each?

T-bills are bought at auction through your bank's ATM or internet banking (cash or SRS) or through your CPF agent bank (CPF OA), submitting a bid before the auction closes. SSBs are applied for through the same channels during the month-long subscription window, in S$500 multiples, with allotment confirmed near month-end. There is no fee to redeem an SSB early; you simply submit a redemption request and receive your principal plus accrued interest the following month.

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