Best Ways to Earn Passive Income in Singapore (2025)

Bonds

By Gerald Wong, CFA • 17 Aug 2025

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Passive income can be a game-changer for your finances. We lay out various options to show how you can start earning passive income in Singapore.

In this article

What happened?

With interest rates trending lower, I’ve shared a few ways to generate higher yields.

I've looked at the best places to park your cash, explored Astrea 9 PE bonds and their allocation results, and discussed whether retirement is still a realistic prospect.

This has sparked active discussion in the Beansprout community about the best ways to earn passive income in Singapore.

The idea is to move beyond relying solely on a monthly salary, and instead make your money work harder through investing.

Investments can provide passive income, where your hard-earned money generates returns with minimal ongoing effort.

This is also a key component of financial freedom: earning enough from multiple passive income sources to sustain your lifestyle.

Common sources of passive income include interest, dividends, annuities, and rental income.

In this guide, we’ll explore a range of low- to high-yield options available to Singaporeans today to help you start building sustainable streams of passive income.

How to earn passive income in Singapore

Here are 12 ways that you can generate passive income in SIngapore:

Fixed deposits
Singapore Savings Bonds (SSBs)
Treasury bills (T-bills)
Cash management accounts
Robo-advisors with income portfolios
Bond funds
Singapore REITs
Singapore blue chip dividend stocks
CPF savings
CPF Life
Endowment plans
Other passive income sources

#1 - Fixed deposits – Guaranteed returns with lock up

Fixed deposits are offered by banks and are similar to a normal savings account.

The key difference between a fixed deposit account and a savings account is that your savings will be locked up in a fixed deposit account for a specific amount of time.

Hence, you can choose the tenor you want for your fixed deposit, be it as short as 1 month or as long as 2-3 years.

The good news is that a fixed deposit account, like a savings account, is also covered under the Singapore Deposit Insurance Scheme.

This scheme guarantees the first S$100,000 in your account should there be a bank failure, and acts as a safety net for your funds.

Interest rates on fixed deposit accounts are typically higher than those of normal savings accounts.

The drawback is that you may lose all your interest earned if you decide to withdraw your fixed deposit before the lock-up period is over.

Hence, we classify fixed deposits as having the safest return (i.e. capital guaranteed) but with one of the lowest yield among the passive income options here.

To get the latest list of best fixed deposit rates this month, check out our guide to the best fixed deposit rates in Singapore.

For those who have savings in USD, find out the best foreign currency fixed deposit rates in Singapore here.

#2 - Singapore Savings Bonds (SSBs) – Long-term flexibility

SSBs are a type of Singapore government-issued bond with step-up interest.

They provide you with a simple and low-cost method to generate predictable returns.

SSBs are issued by the Singapore Government.

They are capital protected, which means you will get your investment amount back in full.

This is an important feature as there are not many investment products that are principal guaranteed!

These bonds have a 10-year maturity and offer monthly redemptions, thus providing investors with sufficient liquidity should they choose to cash out.

You can choose to withdraw your money in any given month without any penalty on the interest earned! The interest will simply be pro-rated according to the duration that you have held the SSBs.

Interest will be received on these bonds every six months, and the interest paid will “step up” over time.

This means that the longer you hold on to your SSB, the higher the average interest rate you will enjoy.

Another attractive aspect of SSB is that you need only a minimum amount of S$500 to invest.

SSBs thus offer an attractive option to lock in higher interest rates while offering the flexibility to withdraw your cash with no penalty.

For August 2025’s issuance, the average 10-year return per annum is 2.11%.

To learn more about investing in SSBs, check out our guide to Singapore Savings Bonds (SSBs) here.

If you are deciding whether to apply for the current issuance of the SSB or wait for the next issuance, check out our SSB interest rate projection here.

#3 - Singapore Treasury Bills (T-bills) – Safe, short-term yield

Next, we look at Treasury Bills, or T-Bills for short.

T-Bills are also government-issued securities which are fully guaranteed by the Singapore government.

These securities offer a safe, short-term yield for investors who prefer capital-guaranteed products with lower yields.

T-Bills are issued with 6-month or 12-month maturities, but unlike SSBs, do not offer the flexibility of monthly withdrawals.

Hence, most investors hold T-bills till maturity to enjoy the full interest income.

The latest 6-month Singapore T-bill for July 2025 is 1.77% and you can read more about why the interest on these bills is declining.

For more information on T-Bills and how to apply for them, you can check out our Singapore T-Bills guide.

#4 - Cash management accounts - Park cash for higher yield

You can also consider parking your savings in a cash management account, which is effectively an investment in a professionally managed fund to generate a higher yield in a relatively low-risk way.

Some examples of cash management accounts include Moomoo Cash Plus, Tiger Vault, and Longbridge Cash Plus.

By putting your money in a cash management account, you will be investing in money market funds such as Fullerton SGD Cash Fund or bond funds.

The indicative 7-day annualised yield of the Fullerton SGD Cash Fund was around 1.80% p.a. as of 8 August 2025. Learn more about the Fullerton SGD Cash Fund here.

However, cash management accounts are not capital guaranteed, and they are also not covered under the Singapore deposit insurance scheme.

You can read our guide to best cash management accounts and money market funds to gain a better understanding of how such accounts work.

#5 - Digital wealth platforms with income portfolios

Digital wealth platforms such as Syfe, StashAway, Endowus have also launched income portfolios to complement their core portfolios.

Such portfolios aim to serve income-seeking investors who prefer a hands-off approach and love a stream of passive income.

Some examples of such income portfolios include Syfe’s Cash+ Flexi, Syfe Cash+ Guaranteed, and StashAway Simple Guaranteed.

Conservative investors who want to earn some passive income from their idle funds, without diving into high-risk investments, could also consider Moomoo Income Plus.

#6 - Bond funds – Access to broad fixed income markets

Next, we look at bond funds.

Such funds provide access to broad fixed income markets, either through an ETF or a unit trust that invests in bonds (bond fund).

Some examples include the Fullerton Short-Term Interest Rate Fund (FSTIR), ABF Singapore Bond Index Fund, United SGD Fund and PIMCO Income Fund.

The advantages of bond funds include diversification and liquidity, as such funds own a wide variety of bonds, thus mitigating the risk of any issuer going bust.

There is also adequate liquidity as these bond funds can be redeemed like a unit trust within two working days.

However, investors also need to be cognisant of the risks – bond funds have market risk as they are very sensitive to interest rate movements.

Hence, any changes in interest rates, or even the expectations of interest rate increases or cuts, can drastically affect the prices of these bonds.

There are also the fees to consider when buying unit trusts, as some charge a sales fee while others charge high management fees.

You can check out our guide to top Singapore bond ETFs and also our guide to best bond funds in Singapore to determine which funds are suitable for your passive income investment portfolio.

#7 - Singapore REITs – Income from real estate

If you are looking for higher yields, you can explore Singapore REITs or real estate investment trusts.

REITs consist of portfolios of real estate assets that earn steady, consistent rental income.

These properties are professionally managed and allow investors to access a wide variety of property sub-classes such as industrial, commercial, retail, hospitality, and healthcare.

REITs have a requirement to pay out at least 90% of their net profits as distributions to enjoy tax benefits.

Because of these characteristics, REITs qualify as dependable income instruments that can dish out a steady stream of passive income to their unitholders.

These REITs provide distribution yields ranging from 2.6% to up to 7.1%.

REITs not only offer diversification as their portfolios can hold tens to hundreds of properties, but also supply a steady flow of distributions that act as a reliable stream of passive income.

Hence, REITs are suited for income-seeking investors who wish to include them as dividend-paying stocks within their portfolios.

Of course, REITs are not without risks.

As REITs take on debt to buy properties, REITs are sensitive to interest rate movements as a rise in rates will result in higher finance costs, thus leading to lower distributions.

Real estate is also cyclical by nature, and the REIT’s properties could suffer a valuation decline should an economic downturn occur.

It’s important to be cognisant of the risks even as you enjoy an attractive yield from REITs.

Some REITs pay out distributions quarterly while others do so half-yearly.

REITs are a great addition for an investor who is seeking reliable income and intends to diversify his/her portfolio into real estate.

To find the right Singapore REIT for your portfolio, check out our best Singapore REIT with highest dividend yield screener.

If you would like to gain broad-based exposure to Singapore REITs in a simple way without analysing individual REITs, learn more about top Singapore REIT ETFs here.

#8 - Singapore blue chip dividend stocks – Steady income

Apart from REITs, you can also choose to invest in dividend-paying stocks listed on the Singapore Exchange, or SGX.

Blue-chip stocks are your best candidate for delivering stability and consistent income across different economic cycles.

Blue-chips stocks derive their name because of their large size, long track record, and ability to weather different economic conditions.

By owning blue-chip stocks, you can enjoy a good night’s sleep without having to worry about share price volatility.

The great thing about blue-chip stocks is that they also pay a dividend.

Hence, you can rely on blue-chip stocks to provide an attractive mix of growth and income for your investment portfolio.

Some examples of solid blue-chip stocks include DBS Group, United Overseas Bank (UOB), Singtel, and ST Engineering.

Blue-chip stocks typically provide dividend yields of between 4% to 6%, and investors can also expect some element of growth.

As these businesses grow their revenue, net profit, and free cash flow, their share prices should also rise in tandem, netting their investors attractive capital gains.

Hence, blue-chip stocks can be considered by long-term investors who seek a mixture of income and long-term capital appreciation.

To find the right Singapore blue chip stock with highest dividend yield for your portfolio, check out our best Singapore high dividend stocks screener.

#9 - CPF savings

Almost every Singaporean is familiar with the Central Provident Fund (CPF), a government scheme that helps you save for retirement.

Your CPF accounts can also be a powerful, low-risk way to grow your money.

You currently earn 2.5% per year on your CPF Ordinary Account (OA) and 4% per year on your CPF Special Account (SA) balances – both higher than the latest yields on 6-month T-bills.

On top of this, there’s an extra 1% p.a. interest on the first S$60,000 of your combined OA and SA balances, capped at S$20,000 for OA.

While the interest earned each year isn’t passive income you can spend now, it compounds within your CPF accounts.

Over time, this growth can help you reach your retirement sums faster, paving the way for higher CPF LIFE monthly payouts in the future, which will then serve as a steady stream of passive income in your retirement years.

Learn how CPF interest rates are calculated here.

#10 - CPF Life – Guaranteed lifetime payouts

The CPF Life is a government annuity scheme reserved for both Singaporeans and Permanent Residents (PRs) when they reach retirement age.

You can find out more about CPF Life in our CPF Life Guide.

This scheme provides you with monthly payouts during retirement for as long as you live, based on the amount you have in your Retirement Account (RA).

Desired Monthly Payout from 65	CPF LIFE Premium at 65 (Savings You Need at 65	Savings You Need at 55
$540 - $570	$97,300	$60,000
$860 - $930	$164,800	$106,500
$1,170 - $1,250	$227,900	$150,000
$1,610 - $1,670	$319,400	$213,000
$3,100 - $3,300	$628,600	$426,000
Source: CPF

The CPF RA is created when you turn 55, and is the sum of the amounts from your Ordinary and Special Accounts.

Payouts are computed based on three tiers – the basic retirement sum (BRS), full retirement sum (FRS), and Enhanced Retirement Sum (ERS).

For Singaporeans turning 55 in 2025, the BRS has been set at S$106,500.

The FRS has been set at 2 times the BRS, or S$213,000, while the ERS has been raised to 4 times the BRS at S$426,000.

If you are curious as to how much you will receive for each of the above scenarios of BRS, FRS, and ERS, you can check out our CPF Retirement Sum guide.

To summarise, CPF Life offers a useful stream of cash that can last you for life.

This cash is guaranteed to flow into your bank account, but you need to assess whether what you receive is sufficient for your lifestyle needs, as the amount will stay constant over time.

#11 - Endowment plans – Guaranteed returns and capital protection

With fixed deposits and Singapore Treasury Bill (T-bill) yields trending lower, more investors are also exploring short-term endowment plans as a way to earn passive income.

An endowment plan is a type of insurance savings product.

It combines savings and insurance protection, funded through either a single or regular premium, and offers returns through guaranteed payouts and potential bonuses.

Endowment plans typically run for 15 to 20 years, but short-term options (2 to 5 years) are available for those seeking a balance between returns and capital preservation without long lock-in periods.

One key drawback is the lack of liquidity. Your funds are locked in for the entire duration of the plan. Withdrawing funds before maturity may result in penalties or reduced payouts, making them better suited for long-term financial goals.

Some examples of endowment plans currently available in Singapore include DBS SavvyEndowment 21, Manulife Goal 2025 (II), and GREAT SP by Great Eastern.

To understand how they work, and how they compare with T-bills and fixed deposits, we have covered that in our guide to endowment plans here.

#12 - Other passive income sources

The list above is not exhaustive, and we also discuss a few other passive income sources below.

The first is rental income derived from the ownership of an investment property such as an HDB flat or condominium.

While this rental income is stable, purchasing property is a capital-intensive exercise involving a significant amount of debt and capital outlay.

There are also fees involved, such as stamp duties, lawyer fees, and agency fees.

Moreover, physical property is illiquid and cannot be converted to cash quickly, unlike REITs, which are traded on a stock exchange.

Another source of passive income is annuities from insurance companies.

These offer long-term, guaranteed payouts subject to the insurer’s solvency, and could form part of your passive income stream.

For accredited investors in Singapore, they can also access a wider range of products such as individual corporate bond issuances. commercial paper and private credit.

What would Beansprout do?

Singapore provides a wealth of passive income choices for the avid investor.

However, any one source of passive income can diminish over time.

So to build a sustainable passive income portfolio, the key is to diversify your holdings across different risk profiles and not put all your eggs in one basket.

Remember that passive income is not without risk. Higher yields often come with higher potential downsides.

Understanding these trade-offs is essential.

What you can do is to park some cash in safer products such as fixed deposits, SSBs, and T-Bills.

Some other cash could be funnelled to bond funds, REITs, or Singapore blue-chip dividend stocks.

By spreading out your investments, you can enjoy capital guarantees for a portion of your funds while enjoying higher yields from the remaining portion.

Another factor to consider – to match the product type to your investment time horizon.

If you are looking for liquidity, then SSBs are more suitable than REITs.

This is because REITs and blue-chip stocks may require a longer time horizon to realise their potential.

If you’re setting aside money for a longer-term objective, such as your child’s education or future retirement needs, an endowment plan can also be a practical option as it discourages premature withdrawals and encourages disciplined saving.

Also, remember to reinvest the income you receive into other passive income sources to enjoy compounding.

By regularly reinvesting the income you receive, you can compound your wealth and see it snowball into a tidy sum that you can use for your retirement.

Even after you have constructed your passive income portfolio, it’s important to regularly review it as your personal circumstances change.

Over the years, your financial goals may also evolve as you grow older, prompting you to reassess the composition of your portfolio and make appropriate adjustments and/or tweaks.

The good news is that you can always start small and then slowly build up your portfolio over time as you enjoy salary increases and bonuses.

Once again, here are some resources to help you get started:

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