Skip to content
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 — by liquidity needs, rate outlook, and amount committed. Includes when SGS bonds are the better 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 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. 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 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” 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):

InstrumentRateTenor
SSB year 11.46%Up to 10 years (free redemption)
SSB 10-year avg2.11%10 years held to maturity
6-month T-bill1.45%6 months fixed
1-year T-bill1.46%1 year fixed

Example: S$10,000 for 6 months

6m T-bill at 1.45% (182 days): You invest S$10,000, earn approximately S$72.30 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.

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: 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.