Lakshmi Pillai, 52, is a school administrator earning $5,500 a month. After CPF she takes home $4,400, spends $3,200 and saves the rest. Her $10,000 fixed deposit has just matured, and she will need the money in about seven months for her son's university fees. A friend tells her to try Treasury bills, so she looks up how to buy one.
Singapore Government Treasury bills (T-bills) are short-term government securities sold at auction by the Monetary Authority of Singapore (MAS). Individual investors can apply from $1,000, and the bills mature in six months or one year. Every successful bidder at an auction receives the same yield, the cut-off yield.
A 6-month bill fits Lakshmi's seven months. At an example cut-off yield of 2%, her $10,000 bill costs $9,900.27 and pays back $10,000. The sections below follow how she opens the accounts, places her bid and gets paid, and the results of the latest auctions.
What Does She Need To Buy T-Bills?
According to the MAS page on buying SGS bonds and T-bills at auction (checked 30 September 2026), the minimum bid is $1,000, in multiples of $1,000. The accounts needed depend on the money used.
| Paid with | Accounts needed | Where to apply |
|---|---|---|
| Cash | A DBS/POSB, OCBC or UOB bank account and an individual CDP account with Direct Crediting Service | The bank's ATM, internet banking or mobile app |
| SRS | An SRS account | The SRS operator bank |
| CPF Ordinary Account | A CPF Investment Account with an agent bank | The agent bank's channels |
Source: MAS
Joint CDP accounts cannot be used. Lakshmi pays with cash from her bank account, so she opens an individual CDP account and links it to the bank with Direct Crediting Service.
A colleague of hers has $60,000 in her CPF Ordinary Account and asks whether to use that instead. She would need a CPF Investment Account with an agent bank, and she would give up the 2.5% the Ordinary Account pays.
Read Also: Can You Buy T-Bills With CPF OA Savings, And Is It Worth It?
Competitive Or Non-Competitive Bid?
A non-competitive bid states only an amount. A competitive bid states an amount and the lowest yield the investor will accept. The MAS T-bills FAQ (checked 30 September 2026) sets out how the two are allotted:
- Non-competitive bids are allotted first, up to 40% of the total issue.
- Each individual's non-competitive bids are capped at $1 million per auction.
- Competitive bids are then accepted from the lowest yield upwards until the issue is filled.
- A competitive bid above the cut-off yield receives nothing.
If non-competitive demand is more than 40% of the issue, each non-competitive bidder receives part of the amount applied for, and the rest is refunded. A competitive bid at a yield below the cut-off is filled in full, and at the cut-off yield. Lakshmi does not want to guess a yield, so she chooses a non-competitive bid.
How Is The Cut-Off Yield Set?
MAS defines the cut-off yield as the highest yield among the accepted competitive bids. Every successful bidder, competitive and non-competitive, is allotted at that yield. MAS also publishes the median yield and the average yield of successful competitive bids, but neither changes what a bidder receives.
In the twelve months to September 2026, the MAS issuance calendar shows a 6-month T-bill auction every two weeks and four 1-year T-bill auctions. The table below lists the latest six T-bill auctions in the calendar.
| Issue | Code | Auction date | Cut-off yield a year |
|---|---|---|---|
| 6-Month T-bill | BS26118E | 10 September 2026 | 1.70% |
| 6-Month T-bill | BS26117A | 27 August 2026 | 1.60% |
| 6-Month T-bill | BS26116V | 13 August 2026 | 1.56% |
| 6-Month T-bill | BS26115N | 30 July 2026 | 1.59% |
| 1-Year T-bill | BY26102T | 23 July 2026 | 1.68% |
| 6-Month T-bill | BS26114W | 16 July 2026 | 1.55% |
Source: MAS, issuance calendar as published on 22 September 2026
How Does She Apply?
The steps below apply to a cash application. SRS and CPF applications follow the same order through the operator or agent bank.
- Find the issue code and auction date on the MAS issuance calendar.
- Log in to the bank's internet banking or app, or use its ATM, and choose the SGS application.
- Select the issue code and enter the amount in multiples of $1,000.
- Choose a non-competitive bid, or a competitive bid with a yield.
- Check the allotment after the auction, when MAS publishes the results.
Bank channels close before MAS does. MAS states that ATM and internet banking applications may close one to two business days before the auction date, so an application made on the auction day itself is too late. Lakshmi applies through her bank's app three business days before the auction.
The securities reach the investor's account three business days after the results are announced, according to MAS. A bid that is not allotted is refunded within one or two business days after the auction.
What Does She Pay And Get Back?
A T-bill pays no coupon. It is sold at a discount to its face value, and MAS repays the full face value at maturity. The MAS FAQ gives the discount as D = M/365 × R, where M is the number of days to maturity and R is the cut-off yield.
If Lakshmi's 182-day bill with a face value of $10,000 closes at a cut-off yield of 2%, the discount is $10,000 × 182/365 × 2% = $99.73. She pays $9,900.27, which is $10,000 less the discount, and receives $10,000 at maturity.
| $10,000 face value, 182 days | 1.5% cut-off yield | 2% cut-off yield | 2.5% cut-off yield |
|---|---|---|---|
| Discount | $74.79 | $99.73 | $124.66 |
| Price paid | $9,925.21 | $9,900.27 | $9,875.34 |
| Paid at maturity | $10,000 | $10,000 | $10,000 |
Source: MAS formula; the yields are examples, not auction results
For a cash application, the bank debits the full $10,000 when the application is made. After the auction, the $99.73 discount comes back to Lakshmi as a refund, together with any amount not allotted.
What If She Needs The Money Early?
According to MAS, investors can sell T-bills on the secondary market through DBS, OCBC or UOB before maturity. The price changes from day to day with market conditions, so an investor who sells early may receive less than the price paid. Investors who may need the money within six months can compare the Singapore Savings Bond, which can be redeemed in any month at full value.
Lakshmi's bill matures about a month before the fees are due. She keeps an emergency fund in her savings account, so she does not expect to sell early.
Read Also: Singapore Savings Bonds Vs T-Bills Vs Fixed Deposits: Which Pays More In 2026?
Is Her Return Taxed?
The Inland Revenue Authority of Singapore (IRAS) does not tax interest that individuals earn on bonds, according to its interest page (checked 30 September 2026). The exception is interest earned through a partnership or a trade, so Lakshmi receives her $99.73 discount in full.
Read Also: How Investment Income Is Taxed In Singapore In 2026
Who Are T-Bills For?
Lakshmi places a non-competitive bid for $10,000 of the next 6-month bill. At a 2% cut-off she would earn $99.73 over 182 days, and the full $10,000 comes back about a month before her son's fees fall due.
T-bills suit investors who can leave the money untouched for six months or a year and want a return set at a government auction. Investors paying with CPF Ordinary Account savings, like her colleague, give up the 2.5% the account pays for more months than the bill runs. Whether T-bills suit an investor depends on when the money is needed and which account it comes from.