Joanne Teo, 33, is a physiotherapist, and her husband Ryan, 35, is a sales engineer. They have $60,000 set aside to renovate the Build-To-Order (BTO) flat they expect to collect in about a year, though the key date could move by several months. The money sits in a fixed deposit that matures this month, and the bank's renewal rate leads Joanne to compare it with a Treasury bill (T-bill) and a Singapore Savings Bond (SSB).
All three are low-risk, pay interest that individuals do not pay tax on, and return the full principal at the end of the term. A T-bill pays one auction yield for six months or a year. A Savings Bond pays a rate that steps up each year for up to ten years and can be redeemed in any month. A fixed deposit pays the rate the bank offers for the term chosen.
For the couple, that means the whole $60,000 comes back in full with no tax on the interest, whichever they choose. The difference is how fast it comes back if the keys arrive early. The sections below compare the latest rates in the issuance calendar of the Monetary Authority of Singapore (MAS), then the limits, access rules and protection of each.
What Do T-Bills And Savings Bonds Pay Now?
| Issue | Code | Auction or issue date | Return a year |
|---|---|---|---|
| 6-Month T-bill | BS26118E | 10 September 2026 | 1.70% |
| 1-Year T-bill | BY26102T | 23 July 2026 | 1.68% |
| Savings Bond Oct 2026, held one year | GX26100Z | 1 October 2026 | 1.65% |
| Savings Bond Oct 2026, held ten years | GX26100Z | 1 October 2026 | 2.32% |
Source: MAS, issuance calendar as published on 22 September 2026
A T-bill's cut-off yield is an annual rate for the bill's term. The Savings Bond rows show the average return a year to the end of year one and year ten, which MAS fixes when the bond is issued. An investor who redeems a Savings Bond early receives the interest up to that month, so the one-year figure is the relevant one for the Teos, who expect to spend the money within a year.
Read Also: How To Buy T-Bills In Singapore: Bids, Cut-Off Yield And Payment In 2026
Do Her Amounts Fit Each Option's Limits?
| T-bill | Savings Bond | Fixed deposit | |
|---|---|---|---|
| Issuer | Singapore Government | Singapore Government | The bank |
| Term | 6 months or 1 year | Up to 10 years | Set by the bank |
| Minimum | $1,000 | $500 | Set by the bank |
| Holding limit | None for individuals | $200,000 across all issues | None |
| Rate | Cut-off yield at auction | Fixed step-up schedule | Set by the bank |
| Paid with | Cash, SRS or CPF Ordinary Account | Cash or SRS | Cash; some banks accept SRS |
| Early exit | Sell on the secondary market | Redeem in any month, no penalty | The bank's own terms |
| Protection | Government-issued | Government-issued | SDIC insurance up to $100,000 per bank |
Sources: MAS, buying SGS at auction, MAS, Savings Bonds and SDIC, scope of deposit insurance, all checked 30 September 2026.
The couple's $60,000 is well inside the $200,000 Savings Bond limit, and far above the $500 and $1,000 minimums. All three options are open to them, so the choice turns on the rate and on how quickly each returns the money.
How Does A Savings Bond Step Up?
According to MAS (checked 30 September 2026), each Savings Bond's interest rates are fixed at issue and rise each year. An investor who holds the bond for ten years receives an average return close to the average 10-year Singapore Government Securities yield of the month the bond was offered. MAS issues a new Savings Bond every month.
The table below shows the full schedule of the latest Savings Bond in the calendar.
| Savings Bond Oct 2026 (GX26100Z), issued 1 October 2026 | Interest that year | Average return a year to that year |
|---|---|---|
| Year 1 | 1.65% | 1.65% |
| Year 2 | 1.70% | 1.67% |
| Year 3 | 1.94% | 1.76% |
| Year 4 | 2.21% | 1.87% |
| Year 5 | 2.39% | 1.97% |
| Year 6 | 2.47% | 2.05% |
| Year 7 | 2.58% | 2.12% |
| Year 8 | 2.70% | 2.19% |
| Year 9 | 2.83% | 2.25% |
| Year 10 | 3.01% | 2.32% |
Source: MAS, issuance calendar as published on 22 September 2026
A T-bill has no step-up. A Savings Bond held for one year usually pays less a year than the same bond held for ten. Joanne will hold hers for a year at most, so only the first-year rate applies to her, and she can still redeem in any month.
How Fast Could She Get The Money Back?
A Savings Bond gives the fastest guaranteed access. MAS lets investors redeem in multiples of $500 in any month, with no penalty, and pays the principal and accrued interest by the second business day of the following month. A redemption request made early in a month can therefore take up to about five weeks to pay out.
A T-bill has no redemption. MAS allows investors to sell it on the secondary market through DBS, OCBC or UOB, at a price that changes with market conditions. A fixed deposit follows the bank's terms, and many banks pay reduced or no interest on a deposit withdrawn before maturity.
For the Teos, a 6-month T-bill bought now matures well before the earliest key date. A 1-year bill or a 12-month fixed deposit could still be running if the keys come early.
How Safe Is Each?
T-bills and Savings Bonds are issued by the Singapore Government, and MAS pays the principal at maturity or on redemption.
According to the Singapore Deposit Insurance Corporation (SDIC) (checked 30 September 2026), Singapore dollar fixed deposits, savings accounts, current accounts and SRS money are insured up to $100,000 in total per depositor per member bank. The couple's $60,000 is fully covered.
Joanne's father, who keeps $150,000 at one bank, shows the limit. He has $100,000 of it insured, and spreading the money across two member banks would bring all of it within the cover.
Is The Interest Taxed?
The Inland Revenue Authority of Singapore (IRAS) does not tax individuals on interest from bonds or from deposits with approved banks, according to its interest page (checked 30 September 2026). A T-bill discount, a Savings Bond coupon and fixed deposit interest are all received in full, so the rates in the tables above are the couple's after-tax rates.
Read Also: How Investment Income Is Taxed In Singapore In 2026
Should Ryan Use His CPF Ordinary Account?
Ryan asks whether his CPF Ordinary Account savings could buy T-bills too. Savings Bonds cannot be bought with CPF. T-bills can, through the CPF Investment Scheme, but the money then stops earning the 2.5% the CPF Board pays on the Ordinary Account.
A T-bill bought with Ordinary Account savings has to pay more than 2.5% before it adds anything, and more again to cover the CPF interest lost while the money moves in and out. Ryan also needs his Ordinary Account for the flat's loan, so he leaves it there.
Read Also: Can You Buy T-Bills With CPF OA Savings, And Is It Worth It?
SSB, T-Bill Or Fixed Deposit: Which Suits Whom?
Joanne lets the fixed deposit mature and does not renew it. The couple put $40,000 into the Savings Bond, which they can redeem in $500 steps whenever the contractor's bills arrive, and $20,000 into a 6-month T-bill that matures before the earliest key date. Any part of the bond can be redeemed in a single month if the keys come early.
Savers who may need the money at short notice, or who want a rate fixed for several years, are served by the Savings Bond within its $200,000 cap. Investors with larger sums, or with SRS or CPF money, can use T-bills and accept one auction yield at a time, and a fixed deposit suits savers who want a known rate for a set term at their own bank, within the SDIC limit. Which pays most changes from month to month, so the latest issue rates and each saver's timing decide the choice.