SGYieldHub

Updated 16 Apr 2026

SSB vs T-bill: which one makes sense for you?

A decision framework for picking between Singapore Savings Bonds and Treasury Bills, based on liquidity needs, rate outlook, and how much you want to commit per person.

Informational only, not financial advice. This is a framework for asking the right questions. For current rates see the comparison page; for MAS’s official product pages see SSB and T-bills.

Quick decision matrix

Your situationPossible fitWhy
Need the money in ~6 months6m T-billMatches your timeline
Need the money in ~1 year1y T-billMatches your timeline, one auction
Might need it anytime, 3 months to 5 yearsSSBFree redemption at face value
Using CPF OA fundsT-bills (CPFIS-OA)SSB is not CPF-eligible
Using SRS fundsEither worksBoth are SRS-eligible
Over S$200K to deploySplit: S$200K in SSB, rest in T-billsSSB caps at S$200K per person

This is a framing guide. The right choice for you depends on circumstances we don’t know — talk to a licensed adviser for anything material.

The three-question filter

1. Do you know exactly when you need this money?

  • Yes, in 6 months: 6-month T-bill matches your timeline.
  • Yes, in 1 year: 1-year T-bill for similar reasons.
  • No, anywhere from 3 months to 5 years: SSB. Free redemption means you’re not boxed in.

2. How much are you committing, and where is the money coming from?

  • Under S$200k, cash or SRS: either works.
  • Over S$200k: SSB caps at S$200,000 per person across all issues, so amounts beyond that go into T-bills, SGS bonds, or other instruments.
  • CPF OA: only T-bills are eligible (via CPFIS-OA). SSB is not CPF-eligible.
  • T-bill non-competitive bids are capped at S$1,000,000 per individual per auction.

3. What’s your view on rates?

  • You think rates will fall: SSB may be attractive, because the 10-year step-up lets you lock in some of today’s levels for a decade. T-bills will reprice lower at each auction as rates fall.
  • You think rates will rise: T-bills let you roll over at higher rates every 6-12 months. SSB year-1 will keep up, but only if you hold newly-issued bonds — existing issues keep their pre-set coupon schedule.
  • You have no view: a split works fine.

The “redemption optionality” story

SSB’s free redemption is worth something — it’s essentially a free option to exit. If you’re unsure whether you’ll need the money in 3 months or 3 years, that option has real value. You’re trading a small yield give-up (versus T-bill) for the flexibility.

One way to think about it: if SSB year-1 is within ~30 bps of 6-month T-bill cutoff, the optionality from SSB may outweigh the yield give-up. If the spread is wider, the T-bill pays you enough to take the lock-in. This is a rule of thumb, not a formula — your own liquidity needs matter more than any specific spread.

Worked comparison with current rates

The current snapshot (as of the last ingest; see freshness badge):

InstrumentRateTenor
SSB year 11.40%Up to 10 years (free redemption)
SSB 10-year avg2.14%10 years held to maturity
6-month T-bill1.47%6 months fixed
1-year T-bill1.46%1 year fixed

Example: S$10,000 for 6 months

6m T-bill at 1.47% (182 days): You invest S$10,000, earn approximately S$73.30 after 182 days. Money is locked — early exit means selling in the secondary market at market price.

SSB at 1.40% year 1: You invest S$10,000, earn approximately S$70.00 in the first 6-month coupon payment (half the annual coupon rate). You can redeem after that month if you want, or hold and benefit from the step-up.

The T-bill typically earns slightly more over this window; the SSB gives you the option to stay invested at rising coupons without re-applying to a new auction.

For historical context, see the SSB history chart, the T-bill history chart, and the full comparison with spread analysis.

Things neither instrument does well

  • Emergency fund: neither is instant-access. Keep a month or two in a high-yield savings account or money market fund for true emergencies.
  • Inflation hedge: both are nominal-yield instruments. Neither adjusts for inflation.
  • Tax nuance: SGS, MAS Bills, and SSB interest is tax-exempt for Singapore-resident individuals under the Qualifying Debt Securities (QDS) scheme. Exception: interest derived through a partnership or trade/business is not exempt. (MAS source)

A common allocation pattern

One pattern that’s been discussed in the Singapore retail investing community: keep your SSB cap filled (subscribe to new issues as they come out, redeem oldest-issue money when you need liquidity), and park everything above the cap in rolling 6-month T-bills. This gives a laddered, short-duration portfolio with maximum flexibility. Whether it fits your situation is a question for you or your adviser.