With bank savings accounts still offering yields under 1%, many Singaporeans are looking for smarter alternatives to grow their idle cash without taking on excessive risk. In this article, we compare three practical options:
- Singapore Treasury Bills (T-bills)
- Singapore Savings Bonds (SSBs)
- Money Market Funds
Each of these instruments offers different levels of return, liquidity, and risk—and the best choice depends on your financial goals and time horizon.
📉 1. Treasury Bills (T-bills)
T-bills are short-term Singapore Government Securities issued for 6 months or 1 year, typically at a discount and redeemed at face value upon maturity.
- 6-month T-bill (Apr 2025): 2.38% p.a.
- 1-year T-bill (Apr 2025): 2.29% p.a.
âś” Pros:
- Government-backed, very low risk
- Short tenure for flexible allocation
âś– Cons:
- Yield is fixed and non-compounding
- Balloting required, and allocation is not guaranteed due to high demand
🏦 2. Singapore Savings Bonds (SSBs)
SSBs are long-term, low-risk government bonds with a 10-year maturity and step-up interest structure—meaning the longer you hold them, the higher the effective yield.
- June 2025 issue (SBJUN25):
- 1st-year rate: 2.20%
- 10-year average return: 2.56% p.a.
âś” Pros:
- Fully government-backed
- Monthly redemption without penalties
- Ideal for long-term conservative investors
âś– Cons:
- Lower yield compared to other instruments
- Balloting required, especially in periods of high subscription
đź’Ľ 3. Money Market Funds
Money market funds invest in short-term, high-quality debt instruments such as government bills, corporate papers, and deposits. They are designed to offer better returns than bank deposits with daily liquidity.
Here are some top-performing funds in the current environment:
| Fund Name | 3-Year Annualised Return | Liquidity | Key Features |
| Fullerton SGD Cash Fund A | 3.33% | Daily (T+1) | Invests in SGD bank deposits and cash instruments |
| Fullerton Short Term Interest Rate Fund | 2.91% | Daily (T+1) | Diversified fixed income, low volatility |
| LionGlobal SGD Money Market Fund | 3.07% | Daily (T+1) | High-quality money market instruments |
| United SGD Money Market Fund | 3.08% | Daily (T+1) | Capital preservation and high liquidity |
âś” Pros:
- Competitive yields (over 3% average returns in recent years)
- Daily access to funds without lock-in
- No balloting or allotment restrictions
âś– Cons:
- Returns are not fixed and can fluctuate
- Not capital-guaranteed (although risk remains low)
đź“Š Summary Table
| Instrument | Indicative Yield | Liquidity | Risk | Balloting? |
| 6-Month T-bill | 2.38% p.a. | Moderate (6 months) | Very Low | âś… Yes |
| 1-Year T-bill | 2.29% p.a. | Moderate (1 year) | Very Low | âś… Yes |
| SSB (SBJUN25) | 2.20–2.56% p.a. | High (monthly) | Very Low | ✅ Yes |
| Money Market Funds | 2.9–3.3% (3Y avg) | Very High (daily) | Low | ❌ No |
🧠Final Thoughts
In today’s low-interest environment, money market funds present an attractive solution for investors seeking liquidity, stability, and returns above 3%—all without the stress of balloting. Meanwhile, T-bills and SSBs remain viable options for capital preservation, especially for investors who can commit for the short or long term and accept the possibility of limited allotment.
The right choice depends on your unique financial goals, liquidity needs, and risk appetite.
đź’¬ Interested in exploring which solution best suits your portfolio?
Feel free to reach out to me directly—I’ll be happy to walk you through your options.
