Updated 07 Jun 2026
SSB vs T-bill: how the two compare
A framework for comparing Singapore Savings Bonds and Treasury Bills by liquidity needs, rate outlook, and amount committed — and where SGS bonds fit.
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 situation | Possible fit | Why |
|---|---|---|
| Need the money in ~6 months | 6m T-bill | Matches your timeline |
| Need the money in ~1 year | 1y T-bill | Matches your timeline, one auction |
| Might need it anytime, 3 months to 5 years | SSB | Free redemption at face value |
| Using CPF OA funds | T-bills (CPFIS-OA) | SSB is not CPF-eligible |
| Using SRS funds | Either works | Both are SRS-eligible |
| Over S$200K to deploy | Split: S$200K in SSB, rest in T-bills | SSB 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. SGS in particular has no per-investor cap and offers tenors out to 50 years if you want to lock in rates for the long run (with the trade-off that prices move before maturity).
- 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’s 10-year step-up schedule locks in today’s issuance levels for a decade, while T-bills 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” framing
SSB’s monthly face-value redemption is a feature T-bills don’t share — functionally an embedded exit option. When a holder’s cash-flow timing is uncertain (3 months vs 3 years), that option is a structural difference in the two instruments. The yield gap between SSB year-1 and 6m T-bill is effectively what the market prices that flexibility at.
A commonly-cited heuristic frames this as a spread test:
- Spread within ~30 bps (SSB year-1 minus 6m T-bill cutoff): yields are close enough that redemption flexibility becomes the differentiator.
- Spread wider than ~30 bps: the T-bill’s additional yield is compensating for the locked tenor.
This is a rough framing only. Individual liquidity needs and tax positions matter more than any fixed spread threshold.
Worked comparison with current rates
The current snapshot (as of the last ingest; see freshness badge):
| Instrument | Rate | Tenor |
|---|---|---|
| SSB year 1 | 1.46% | Up to 10 years (free redemption) |
| SSB 10-year avg | 2.11% | 10 years held to maturity |
| 6-month T-bill | 1.48% | 6 months fixed |
| 1-year T-bill | 1.46% | 1 year fixed |
Example: S$10,000 for 6 months
6m T-bill at 1.48% (182 days): You invest S$10,000, earn approximately S$73.80 after 182 days. Money is locked — early exit means selling in the secondary market at market price.
SSB at 1.46% year 1: You invest S$10,000, earn approximately S$73.00 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.
Over this 6-month window the T-bill cut-off is often the higher rate; the SSB can be held past the first coupon — stepping up each year — or redeemed in any month, 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: interest from SGS, MAS Bills, and SSB is tax-exempt for individuals (whether resident or not) under the Qualifying Debt Securities (QDS) scheme. This is a per-instrument rule, not a blanket “all SG bonds are tax-free” rule — corporate bonds qualify only if they meet the QDS criteria individually. The exemption also doesn’t apply if the interest is derived through a partnership or trade/business. (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.
Related reading
- How Singapore Savings Bonds work — step-up coupons, application process, worked examples
- T-bill auctions explained — competitive vs non-competitive bids, how to apply
- SSB vs T-bill comparison — interactive charts with historical spread analysis