Surprising fact: more than half of local cash managers view short-term government paper as a top option for preserving capital this year.
We wrote this guide to help you, an investor, understand how the t bill interest rate singapore is set and what it means for your expected yield.
SGS notes are issued at a discount with tenors of 6 months and 1 year. They are fully backed by the Singapore government and carry AAA credit quality, so your capital is protected while you earn tax-exempt income.
We explain auction timing, minimum investment of S$1,000, settlement at T+3, custody options like CDP/SRS/CPFIS, and how to read results in your account. If you want hands-on help, Whatsapp us for a discovery session and we’ll walk you through bids, compare other option, and align choices with your goals.
Key Takeaways
- Clear overview of how the t bill interest rate singapore affects expected return and cash planning.
- Simple steps to participate, read auction results, and track holdings in your account.
- SGS paper is low risk and AAA-backed, offering dependable income at maturity.
- Compare this option with fixed deposits, SSB, and high-yield accounts before deciding.
- Auctions, settlement, and custody rules are straightforward; don’t miss deadlines.
- Contact us via Whatsapp for personalized guidance on bids and portfolio fit.
Beginner Overview: Why T-bill rates matter for Singapore investors right now
What you earn on short-dated government notes matters when you plan liquidity for the coming months as an investor.
These yields show the going rates for safe, park-and-wait cash placements. Singapore issues six-month papers roughly every two weeks and one-year papers quarterly. Historical moves have ranged from peaks above 4% in late 2022 to softer levels by 2024–2025, so watching trends helps set expectations.
Yield and interest at maturity are predictable. Treasury bills act as a low-volatility complement to bonds and other investments. Use the simple table below to see issuance cadence and key auction metrics that MAS publishes.
If you want a fast, personal check of whether this fits your near-term cash plan, Whatsapp us for a discovery session and we’ll walk you through recent auction results and rollout options.
| Tenor | Frequency | Key auction signals | Typical use |
|---|---|---|---|
| 6 months | ~Every 2 weeks | Cut-off yield, bid-to-cover | Short cash parking, rollover |
| 1 year | Quarterly | Allotment metrics, median yield | Short-term laddering, cash buffer |
| Signals | — | Demand, macro shifts | Compare to bank products and bonds |
What Are Singapore T-bills and How They Work
If you need a low-risk place to hold cash, government securities with short tenors are a practical choice.
Tenors and issuance
Tenors, issuance frequency, and the role of Singapore Government Securities
Treasury bills come in two short tenors: 6-month and 1-year. Issuance is frequent, so you can ladder holdings to match cash needs over coming months.
These instruments sit inside the broader framework of Singapore government securities alongside bonds and other paper. Announcements appear about five business days before auction and settlement follows T+3.
How pricing and maturity work
Discount pricing, maturity, and how you receive your interest at par
These bills are issued at a discount with no coupons. You pay a discounted amount today and receive face value at maturity.
The difference between price and par is your yield. A higher yield means a lower purchase price and a larger gain at maturity.
Credit quality and taxes
Credit quality, taxes, and why T-bills are considered low-risk
They are fully backed by the AAA-rated sovereign, so default risk for individuals is extremely low.
Interest income is tax-exempt, there is no capital gains tax, and minimum subscriptions start at S$1,000 in S$1,000 multiples. Custody options include CDP, SRS, and CPFIS.
- Simple structure: buy at a discount, hold to maturity, collect par.
- Flexible issuance: regular auctions let you roll or ladder.
- Support: Whatsapp us for a discovery session and we’ll map the SGS landscape and how these papers fit your liquidity timeline.
How the t bill interest rate singapore Is Set at Auction
The auction process determines the final cut-off yield and the purchase price for each issuance. We explain the mechanics so you can plan the amount to allocate and choose between simplicity and control.
Uniform-price auctions: non-competitive vs competitive bids
In a uniform-price auction, all allotted bidders receive the same cut-off yield. Non-competitive applications are accepted first, up to 40% of the issue. If demand exceeds that ceiling, allotments are pro-rated.
Cut-off yield, price, and allotment mechanics
Competitive bids name a yield; lower yields get priority. The highest accepted competitive yield is the cut-off yield. That yield sets the price that applies to everyone.
Demand signals: bid-to-cover, median and average yields
MAS reports median and average yields and the bid-to-cover ratio. These metrics show how investor demand clustered during the t-bill auction and signal tightening or loosening in money markets.
Reading results and computing your initial amount
Use MAS’s formula: D = M/365 × R; P = S$100 − D. For example, a 182-day issue at 4.00% gives P = S$98.005 per S$100, so S$1,000 costs S$980.05.
| Item | Key detail | Why it matters |
|---|---|---|
| Non-competitive | Up to 40% of issuance, S$1M limit per individual | Certainty of allotment at final cut-off yield |
| Competitive | Filled lowest-to-highest yields; cut-off may be pro-rated | Control of the yield but less certainty |
| Allotment cap | Max 15% of issuance per person | Prevents concentration and protects issuance |
Quick tip: Whatsapp us for a discovery session. We’ll help you choose non-competitive or competitive bids and estimate likely allotments for your planned amount.
Where T-bill Rates Stand Now (present): Trends in 6‑month and 1‑year yields
Short-term yields have moved notably lower in recent months, reshaping where investors park near-term cash.
Six-month cut-off yield: the latest print was 2.05% at the 5 Jun 2025 auction (issue BS25111T). That is down from 2.20% on 22 May 2025 and well below the 3.70% high on 4 Jul 2024.
Demand stayed robust. The 5 Jun tranche sized at S$7.6b drew S$17.9b in applications, keeping bid-to-cover ratios often above 2x.
One-year results: yields eased from the 3.45–3.58% band in early 2024 to 2.95% (28 Jan 2025) and 2.29% (22 Apr 2025). This places current yields well under last year’s levels.
Why this matters: expectations for Fed cuts and a steady MAS stance tend to pull local yields down. When yields fall, the purchase price moves closer to par, so your implied return at maturity compresses.
“Strong applications relative to issuance show investors still value AAA-backed liquidity for short horizons.”
| Metric | Recent value | What to watch |
|---|---|---|
| 6‑month cut-off yield | 2.05% (5 Jun 2025) | Compare next auctions for momentum |
| 1‑year cut-off yield | 2.29% (22 Apr 2025) | Locking vs reinvestment trade-off |
| Demand / bid-to-cover | S$17.9b apps on S$7.6b issue; >2x | Shows strong appetite for safe, short paper |
Practical takeaway: if your cash horizon is fixed, weigh 6‑month versus 1‑year tenors to balance reinvestment risk and yield visibility. For a tailored plan and auction timing, check recent yield analysis or Whatsapp us for a discovery session and clear action steps for your portfolio.
How to Invest in Singapore T-bills and Compare Alternatives
Retail access is straightforward. Retail investors can apply through DBS/POSB, OCBC or UOB using ATMs or internet banking. The on-screen process guides you through application types and confirmation.
Minimums and limits: the minimum amount is S$1,000 in S$1,000 increments. Non-competitive applications can be up to S$1,000,000 per auction, while total individual allotment is capped at 15% of each issuance. Settlement is T+3.
Where holdings appear
Cash applications show in your CDP account after 6pm on issue date. SRS purchases are reflected on your srs operator statement. CPF-linked holdings appear on CPFIS or monthly CPF statements.
Quick step-by-step
- Choose your bank channel—DBS/POSB, OCBC or UOB—and follow the application process.
- Pick non-competitive for certainty or competitive if you want to name a yield.
- Fund the amount; final price depends on the auction cut-off and discount.
- Confirm custody: CDP for cash, srs operator for SRS, and CPFIS for CPF accounts.
Compare alternatives
Fixed deposits offer simple returns but insurance limits and lock-in rules differ. SSB gives monthly flexibility. High-yield accounts may need conditions that reduce true yield.
| Option | Liquidity | Protection | Best for |
|---|---|---|---|
| Singapore t-bill | Short-term, fixed maturity | AAA sovereign backing | Preserving cash with predictable yield |
| Fixed deposits | Locked term | Deposit insurance up to S$75k | Higher guaranteed nominal return for term |
| High-yield accounts | On-demand with conditions | Bank-dependent | Flexible parking if you meet conditions |
Practical note: weigh your cash timing, desired yield, and account rules before choosing an investment option. Explore a complete guide or Whatsapp us for a discovery session. We’ll walk you through applications, reading CDP/SRS/CPF statements, and right-sizing your amount.
Conclusion
, When liquidity and certainty matter, short-maturity government notes are a practical building block for your cash plan.
Recent six-month cut-off yield prints fell to 2.05% (5 Jun 2025), and one-year tenors have eased since 2024. That trend means treasury bills still provide sovereign-backed income with clear pricing.
Key takeaways: cut-off yield trends have eased, singapore t-bills can anchor near-term liquidity, and small timing moves in t-bill rates and yields matter for outcomes.
If you want a steady plan with minimal admin, Whatsapp us for a discovery session. We’ll personalize a strategy that fits your horizon, protects capital, and turns auction mechanics into straightforward investments for you.
FAQ
What are Singapore T‑bills and how do they work?
Singapore T‑bills are short-term government securities issued at a discount and redeemed at par on maturity. You buy them below face value; the difference between purchase price and redemption amount is your income. They’re issued in tenors like 6‑month and 1‑year and are administered by the Monetary Authority of Singapore through regular auctions. Because they are backed by the government, they carry very low credit risk.
How is the cut‑off yield determined at an auction?
The cut‑off yield is the highest accepted yield in a uniform‑price auction. Competitive bidders submit yields and non‑competitive bidders accept the cut‑off. All successful competitive bidders receive the same yield (the cut‑off), and allotment is based on demand and bid ranking. The final price you pay is derived from that yield.
What’s the difference between competitive and non‑competitive bids?
A competitive bid specifies the yield you’re willing to accept and may not be fully filled if the price is unfavorable. A non‑competitive bid accepts the auction’s cut‑off yield and guarantees allotment up to a set limit. Non‑competitive bids are simpler for individual investors who want certainty of allocation.
Where can I submit an application to participate in T‑bill auctions?
You can apply through major local banks such as DBS/POSB, OCBC, and UOB—via ATMs, internet banking, or branches. Brokerages and the Central Depository (CDP) also facilitate applications. You’ll need the required account (CDP, SRS, or CPF when applicable) and sufficient funds before settlement.
What are typical minimum amounts and limits per auction?
Auction minimums are usually set at relatively low denominated amounts to keep access broad. There are per‑auction limits for non‑competitive bids to ensure fair allocation. Exact figures can change, so check the MAS auction announcement or your bank’s investor page before bidding.
How often are T‑bills issued and what tenors are available?
The government issues bills on a regular schedule—commonly every month—for standard tenors such as 6‑month and 1‑year. Frequency and tenors are announced in advance by MAS, allowing investors to plan participation around cash‑flow needs and market views.
How do I receive returns from a discounted security?
Returns arrive at maturity when the security is redeemed at par. The difference between your purchase price and the redemption value is credited to your settlement account (CDP, SRS, or bank account), net of any applicable taxes or fees.
How do auction results signal market demand and future yields?
Metrics like the bid‑to‑cover ratio, median and average yields, and cut‑off yield show demand strength. A high bid‑to‑cover ratio suggests strong demand and can push yields lower; weak demand tends to widen yields. Analysts watch these signals alongside central bank moves to gauge interest trends.
Where will my holdings appear after purchase?
Holdings bought through retail channels usually show up in your CDP or SRS account. If you use CPF schemes, related records appear in CPFIS or relevant CPF statements. Your bank or broker will also provide transaction confirmations and settlement advice.
How do T‑bills compare with fixed deposits and other short‑term options?
T‑bills often offer competitive yields with higher liquidity and government backing compared with many fixed deposits. Unlike bank deposits, they trade in secondary markets and can be more tax‑efficient depending on your situation. Compare maturity, accessibility, and risk when choosing between T‑bills, fixed deposits, Singapore Savings Bonds, and high‑yield accounts.
What macro factors influence short‑term yields like 6‑month and 1‑year results?
Short‑term yields reflect expectations about central bank policy (e.g., the Fed or MAS stance), inflation outlook, and liquidity conditions. Changes in global rates, local monetary policy signals, and market supply/demand all move cut‑off yields for these tenors.
How can individuals compute the effective return from a T‑bill purchase?
Calculate return by taking the difference between par value and purchase price, divide by purchase price, then annualize for comparison across tenors. Auction result pages from MAS provide cut‑off yields and prices to help you compute the exact cash outlay and expected redemption amount.
Can I use SRS or CPF funds to buy T‑bills?
Yes. Selected accounts like SRS and certain CPF schemes allow participation based on scheme rules. Using these accounts may affect tax treatment and eligibility, so confirm options with your bank or account administrator before bidding.
Where can I find the latest auction results and historical yield data?
The Monetary Authority of Singapore publishes auction results, cut‑off yields, and historical series on its website. Banks and brokerages also post summaries and comparison tools to help investors review recent 6‑month and 1‑year outcomes and trends.
Are there fees or taxes I should expect?
Direct fees for retail participation are typically low or nonexistent, but intermediary fees may apply through some brokers. Interest from government securities is generally favorably treated, though tax rules depend on your residency and account type—consult your tax advisor for specifics.
How liquid are T‑bills if I need cash before maturity?
T‑bills can be sold in the secondary market, offering liquidity, but sale price depends on prevailing yields. If rates rose since your purchase, you may receive less than par; if rates fell, you could gain. For predictable cash needs, match your cash timeline to the bill tenor.
