Singapore T-Bills Explained: How to Buy, What You Earn, and Is It Worth It in 2026
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A note before we begin: The content on DLCuration is produced for general informational purposes only. It does not take into account your individual financial situation, goals, or needs. Nothing published here constitutes financial, investment, or trading advice — and it should not be treated as such. T-bill yields change with every auction — always verify the current cut-off yield on the MAS website before making any decision. While we make every effort to ensure accuracy, DLCuration makes no representation and accepts no liability for any losses that may arise from decisions made based on this content. If you are unsure about any financial decision, please consult a licensed financial adviser.
Singapore savings accounts have one thing in common: their rates are set by a bank’s marketing team, tied to conditions you may or may not meet, and can be revised down any time with a few weeks’ notice.
Singapore T-bills have none of that. The yield is set at auction, by the market. No conditions. No credit card spending. No salary crediting. No insurance to buy. You put in your money, wait six months or twelve months, and get back more than you put in — guaranteed by the Singapore Government, which carries a AAA credit rating.
That is the case for T-bills in plain language. It is also why they attract a different kind of investor than high-yield savings accounts — specifically, someone who wants certainty over maximisation, and who is comfortable locking funds away for a defined period in exchange for a clean, unconditional return.
In 2026, T-bill yields have come down meaningfully from their 2023–2024 peak of 3.7–4%. The latest 6-month T-bill auction held on 23 April 2026 yielded 1.40% p.a., while the 1-year T-bill auctioned on 16 April 2026 yielded 1.46% p.a. That puts T-bills roughly in line with no-condition savings accounts like CIMB FastSaver — but with a structural advantage: the return is locked in at purchase, not dependent on monthly conditions that could slip.
This guide covers everything: what T-bills are, how the auction works, the step-by-step process to buy them via cash, CPF, or SRS, what you actually earn, and the honest assessment of when they make sense versus alternatives.
Reminder: T-bill yields change at every auction. All yield figures in this article are based on auctions held in April 2026. Check the MAS website for the current cut-off yield before any investment decision.
What Is a Singapore T-Bill?
A Singapore Treasury Bill (T-bill) is a short-term debt instrument issued by the Singapore Government. When you buy a T-bill, you are effectively lending money to the government for a fixed period — six months or one year — and earning interest in return.
The mechanism is slightly different from a savings account. T-bills are issued at a discount to their face value. You pay less than S$1 for every S$1 of face value you will receive at maturity. The difference between what you pay and what you receive at maturity is your return.
A simple example: You invest S$10,000 in a 6-month T-bill at a yield of 1.40% p.a.
- Annualised return: 1.40% p.a.
- Half-year return (6 months): approximately 0.70%
- Interest earned: approximately S$70
- At maturity: S$10,070 returned to you
The interest is paid upfront — it is deducted from the purchase price, not added at maturity. So in practice, you actually transfer slightly less than S$10,000 when you apply, and receive the full S$10,000 at maturity. The interest amount is credited to your account shortly after the auction result is confirmed.
T-bills are issued by MAS on behalf of the Singapore Government and are fully backed by Singapore’s sovereign credit — the same government that has maintained a AAA credit rating for decades. The risk of default is as close to zero as any financial instrument can be.
6-Month vs 1-Year T-Bills: Which to Choose?
Singapore issues two tenors of T-bills for retail investors: 6-month and 1-year.
| Feature | 6-Month T-Bill | 1-Year T-Bill |
|---|---|---|
| Maturity | 6 months from issue date | 12 months from issue date |
| Latest yield (Apr 2026) | 1.40% p.a. | 1.46% p.a. |
| Auction frequency | Every two weeks (approx.) | Monthly (approx.) |
| Flexibility | Funds returned in 6 months | Funds locked for 12 months |
| Best for | Rolling short-term cash | Locking in a rate for longer |
The yield difference between 6-month and 1-year is currently small — 6 basis points as of the latest auctions. In most environments, the 6-month T-bill makes more sense for most retail investors because it returns your capital twice as quickly, giving you the option to reinvest at whatever rate prevails in six months or redirect the funds elsewhere.
The 1-year T-bill is worth considering if you are confident rates will fall further and want to lock in the current yield for a full year. Both are issued regularly enough that you are never waiting long for the next opportunity.
What You Actually Earn: Real Numbers
With a 6-month T-bill yield of 1.40% p.a. and a 1-year yield of 1.46% p.a., here is what that looks like in actual SGD terms across different investment amounts:
| Amount Invested | 6-Month Return (1.40% p.a.) | 1-Year Return (1.46% p.a.) |
|---|---|---|
| S$5,000 | ~S$35 | ~S$73 |
| S$10,000 | ~S$70 | ~S$146 |
| S$20,000 | ~S$140 | ~S$292 |
| S$50,000 | ~S$350 | ~S$730 |
| S$100,000 | ~S$700 | ~S$1,460 |
Returns are approximate, calculated at the stated annualised yield for the respective tenor. Actual returns may vary by a few dollars due to rounding in the discount price calculation. CPF OA bank transaction fees (~S$2.70 per transaction) apply for CPF purchases and reduce net return slightly.
These figures sit below what the top bonus-interest savings accounts pay in realistic terms (2.00–2.45% p.a. for OCBC 360 or DBS Multiplier when conditions are met). But compare T-bills to the no-condition alternatives: CIMB FastSaver offers 1.05–1.50% p.a. without any requirements, putting the 6-month T-bill at 1.40% in the same neighbourhood — with the key distinction that the T-bill yield is locked in at the auction date, while CIMB’s rate can be revised at any time.
What You Need Before You Can Buy
For cash purchases:
- A bank account with DBS/POSB, OCBC, or UOB
- An individual Central Depository (CDP) account with Direct Crediting Service (DCS) activated — this is where your T-bill holdings are recorded and where proceeds are paid at maturity
If you do not have a CDP account yet, open one at SGX’s website. The process takes one to two weeks for full activation, so plan ahead before the next auction date.
For CPF OA purchases:
- A CPF Investment Account (CPFIA) with one of the three CPFIS agent banks: DBS/POSB, OCBC, or UOB
- Note: for CPF SA, no CPFIA is needed — you apply directly through your CPFIS-SA agent bank
For SRS purchases:
- An SRS account with one of the three SRS operators: DBS/POSB, OCBC, or UOB
Applications must be submitted before each bank’s cut-off time, which is typically one business day before the auction date. Check your bank’s exact cut-off time — some close earlier than others.
How to Buy Singapore T-Bills: Step by Step
Step 1 — Check the auction schedule
SGS T-bills are issued according to an issuance calendar published by MAS. Go to mas.gov.sg → Bonds & Bills → Auctions and Issuance Calendar. The announcement date, auction date, and issue date are listed for every upcoming T-bill issuance. Note the auction date and work backwards — your bank application needs to be submitted one to two business days before.
Next auction: BS26109N — Auction date 7 May 2026. Applications close approximately 6 May at your bank’s stated cut-off time.
Step 2 — Log into your bank’s internet banking (DBS, OCBC, or UOB)
You can apply through DBS/POSB, OCBC and UOB ATMs or internet banking. Internet banking is the most convenient method for most investors. ATMs are available if you prefer an offline approach.
On DBS: Log in → Invest → Government Securities & T-bills → Buy
On OCBC: Log in → Investments & Insurance → Singapore Government Securities (SGS) → Buy under Treasury Bills (SGS T-Bills)
On UOB: Log in → Invest/Insure → Singapore Government Securities → Apply for T-bill
Step 3 — Choose your bid type
You will be asked whether you want a competitive bid or a non-competitive bid.
Non-competitive bid (recommended for most retail investors): You do not specify a yield. You accept whatever cut-off yield is determined at the auction. Non-competitive bids are allotted first, up to 40% of the total issuance amount. For retail investors, this is the right choice — you are guaranteed an allocation (up to the 40% cap) without the risk of your bid being below the cut-off yield.
Competitive bid (for experienced investors): You specify the minimum yield you are willing to accept. If the cut-off yield falls below your stated yield, your bid is rejected and your funds are returned. Used by institutional investors and sophisticated retail investors who want yield control.
For almost all Singapore retail investors reading this guide: choose non-competitive.
Step 4 — Enter your application amount
The minimum investment is S$1,000. Subsequent increments are in multiples of S$1,000. There is no maximum — you can invest as much as you like.
For new T-bill issuances, the entire bid amount is debited from your account upon application submission. In the event of an unsuccessful bid, the funds will be promptly refunded to the originating account, typically within one to two business days following the auction.
Step 5 — Select your payment source
- Cash: debited from your linked DBS/OCBC/UOB bank account
- CPF OA: debited from your CPF Ordinary Account (note the fee: S$2.50 + GST per transaction for OCBC and UOB; DBS waives this fee for internet banking applications)
- SRS: debited from your Supplementary Retirement Scheme account
Step 6 — Submit and confirm
Review the application details — issue code, bid type, amount, payment source — and submit. You will receive a confirmation from your bank.
Step 7 — Check your allocation result
You can check whether or not you received an allocation by going directly to the MAS website after the auction date. Results are typically announced about an hour after the auction closes.
- Cash purchases: allocation appears in your CDP statement
- CPF OA purchases: appears in your CPFIS statement from your agent bank
- SRS purchases: appears in your SRS statement from your SRS operator
Step 8 — Receive your interest and wait for maturity
If your non-competitive bid is successful, the interest is credited to your bank account within a few business days of the issue date. The principal amount is returned to you at maturity — six months or twelve months later, depending on the tenor you chose.
There is nothing more to do. You do not need to log in, monitor a price, or make any decisions until maturity.
T-Bills Using CPF OA: A Special Note
Buying T-bills with CPF OA money is legal and straightforward — but the decision requires a specific calculation.
Your CPF money already earns a default interest rate. By investing your CPF into T-bills, you are trading the CPF interest rate for the T-bill interest rate. To ensure it is worth investing your CPF money into T-bills, the T-bill interest rate should be meaningfully higher than the prevailing CPF rate.
The CPF Ordinary Account currently pays 2.50% p.a. — guaranteed, risk-free, with no lock-up friction. The 6-month T-bill at 1.40% p.a. pays less than the CPF OA rate. At current yields, T-bills are not an attractive alternative to leaving money in CPF OA. This was the case when T-bill yields were 3.5–4% in 2023–2024. It is not the case at 1.40% in 2026.
There is also a timing cost to be aware of. You will not earn the CPF interest rate in the month of your T-bill application and the month when you receive the principal back at maturity. Depending on timing, you can lose up to two months of CPF interest. Combined with the S$2.50 + GST bank fee for CPF OA applications, the break-even point for CPF OA T-bill purchases is considerably above the current 1.40% yield.
Summary: Do not use CPF OA to buy T-bills at current rates. Leave your CPF OA earning its guaranteed 2.50% p.a. Use cash or SRS instead.
T-Bills Using SRS: A Genuinely Good Use Case
SRS accounts are an entirely different story. Since idle SRS balances earn only 0.05% per year, allocating them to T-bills allows you to capture higher short-term yields backed by the Singapore Government.
At 1.40% p.a., a 6-month T-bill earns 28 times more than your idle SRS balance — with no additional risk. If you have an SRS account with uninvested cash sitting in it, buying T-bills is one of the most sensible things you can do with those funds while you decide on longer-term SRS investments.
The process for SRS T-bill purchases is identical to cash purchases, except you select your SRS account as the payment source in Step 5.
When T-Bills Win vs When Savings Accounts Win
| Situation | Better Option | Why |
|---|---|---|
| You meet savings account bonus conditions consistently | Savings account (OCBC 360 / DBS Multiplier) | Realistic rate of 2.00–2.45% beats T-bill at 1.40% |
| You cannot or do not want to meet monthly conditions | T-bill | Guaranteed 1.40%, no conditions, rate locked at auction |
| You need money accessible at any time (emergency fund) | Savings account (CIMB FastSaver) | T-bills cannot be redeemed early without a secondary market sale |
| You have SRS idle cash | T-bill | 1.40% vs 0.05% — no comparison |
| You have CPF OA idle cash | Keep in CPF OA | CPF OA pays 2.50% — T-bill at 1.40% is lower |
| You are parking a large sum above savings account bonus caps | T-bill or SSB | Savings accounts pay base rate (0.05%) above cap; T-bill pays full 1.40% |
| You want to lock in a rate before expected further cuts | 1-Year T-bill | Rate secured for 12 months regardless of subsequent auction outcomes |
| You need total certainty of return with zero conditions | T-bill | No bank can revise your T-bill yield after purchase |
The Key Limitation: You Cannot Exit Early Without Cost
This is the most important practical limitation of T-bills, and it is underemphasised in most guides.
Investors cannot redeem T-bills early. You may sell your T-bill on the secondary market at DBS, OCBC, or UOB’s main branches. However, the price of the T-bill may rise or fall before maturity, and trading volume for T-bills is low, making them relatively illiquid.
In plain terms: if you need your money before the T-bill matures, you can try to sell it — but you may not get back what you paid, and finding a buyer is not guaranteed at any given moment. For practical purposes, treat your T-bill funds as locked for the full tenor.
This is why T-bills and emergency funds are incompatible. Your emergency fund must be accessible the day your car breaks down, not in three months when your T-bill matures. Use CIMB FastSaver or a high-yield savings account for emergency money. Use T-bills for surplus cash beyond the emergency buffer.
Tips for Getting the Most From T-Bills in 2026
Always use non-competitive bids. Unless you have a specific yield target and are comfortable having your bid rejected, non-competitive is the right choice for all retail investors. You get the market rate, you get your allocation.
Apply early — not on the last day. Banks have cut-off times that are typically one to two business days before the auction. The MAS website shows the official auction date — your bank’s deadline is earlier. Applying on the announced deadline day may mean your bank’s portal has already closed.
Set a calendar reminder for maturity. When your T-bill matures, the principal and any remaining proceeds are credited back to your bank account or CPF/SRS statement automatically. But if you intend to roll into the next auction, you need to actively apply again. T-bills do not auto-roll. Set a reminder one week before maturity to check the upcoming auction schedule and apply for the next issuance.
Do not use CPF OA at current yields. With CPF OA earning 2.50% p.a. guaranteed, and the 6-month T-bill at 1.40%, the maths does not work. Revisit this decision if T-bill yields rise significantly above 2.50% p.a.
For amounts above savings account caps, T-bills are the clean solution. Most savings account bonus interest caps at S$75,000–150,000. Every dollar above that cap earns the base rate of 0.05%. T-bills earn 1.40% on any amount — no cap, no conditions. For savers with more than S$150,000 in liquid cash, T-bills are the logical home for the excess.
Frequently Asked Questions
What is the current Singapore T-bill yield?
The cut-off yield for the 6-month T-bill issued on 28 April 2026 is 1.40%, and the 1-year T-bill issued on 21 April 2026 yielded 1.46%. The next 6-month auction (BS26109N) is on 7 May 2026. Yields change at every auction — always check the MAS website or your bank’s SGS section for the latest figure before applying.
Is there a minimum investment amount for Singapore T-bills?
Yes. The minimum is S$1,000. You can invest in multiples of S$1,000 above that — S$2,000, S$5,000, S$10,000, and so on. There is no maximum cap on how much you can invest in a single T-bill issuance.
Do I pay tax on T-bill interest in Singapore?
No. Interest income from Singapore Government Securities — including T-bills — is exempt from Singapore income tax for individual investors. This applies to purchases made with cash, CPF, or SRS funds.
Can I buy T-bills if I do not have a CDP account?
No — for cash purchases, a CDP account with Direct Crediting Service activated is required. If you do not have one, open one at sgx.com. The process takes one to two weeks. For CPF and SRS purchases, no CDP account is needed — proceeds flow through your CPF or SRS statement instead.
What happens if I am only partially allocated?
If your non-competitive bid exceeds the remaining 40% allocation cap (which can happen in oversubscribed auctions), you may receive only a partial allocation. The unallocated portion is refunded to your bank account within one to two business days of the auction. Partial allocations happen occasionally — if it is important to deploy the full amount, apply early in multiple smaller applications or accept the possibility of partial fills.
Can I buy T-bills using Supplementary Retirement Scheme (SRS) funds?
Yes, and this is one of the most compelling use cases for SRS account holders. Idle SRS cash earns only 0.05% p.a. Buying 6-month T-bills at 1.40% p.a. earns 28 times more with no additional risk. Apply through your SRS operator’s (DBS, OCBC, or UOB) internet banking portal under Singapore Government Securities.
What happens to my T-bill if the Singapore Government defaults?
Singapore has maintained a AAA sovereign credit rating — the highest rating assigned by all three major credit agencies — consistently. A Singapore Government default is a theoretical risk, not a practical one for planning purposes. T-bills are as close to a risk-free instrument as exists in Singapore’s financial markets. For comparison, the same AAA rating is held by fewer than twelve countries globally.
Final Thoughts
Singapore T-bills are not exciting. They are not going to make you rich. At 1.40% p.a., they are not even beating inflation in most scenarios.
What they do is this: they pay a guaranteed, unconditional, government-backed return for a fixed period, with no monthly hoops to jump through and no bank able to revise your rate after the fact. For cash sitting above your savings account bonus cap, for idle SRS funds earning 0.05%, or for investors who simply do not want to manage monthly conditions — T-bills do exactly what they promise.
The decision to use them is not about maximising yield. It is about eliminating condition-based risk on a portion of your liquid savings while keeping the process simple.
In a rate environment where most savings accounts pay between 1.5% and 2.5% p.a. depending on whether you meet their conditions, 1.40% unconditional is a reasonable trade-off for the right investor in the right situation.
Reminder: T-bill yields change at every auction. All figures in this article reflect auctions held in April 2026. Verify current yields on the MAS website before making any investment decision. Nothing here constitutes financial or investment advice.
Are you currently using T-bills as part of your cash management strategy — and has the drop from 2023–2024 yields changed how you think about them? Share your approach in the comments.
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