Singapore T-bills Guide: Latest Yield and How to Apply (2025)

TL;DR

• Singapore Treasury Bills (T-bills) are fully backed by the Singapore government, and offer you a sound way to earn a regular interest payment.
• Singapore T-bills have a short maturity period of 6 or 12 months, compared to SGS bonds which have a maturity of 2 to 30 years.
• Compared to the SSB, investors of Singapore T-bills may face less flexibility to transact after issuance. As such, investors should be prepared to hold the Singapore T-bills till maturity.

What are Singapore T-bills?

Like the Singapore Savings Bonds, Singapore T-bills are fully backed by the Singapore Government.

They offer a sound way for you to diversify your investment portfolios, while earning a regular interest payment. 

Singapore T-bills have a maturity of 6-months or 1 year.

This is shorter than SGS Bonds which have a maturity of 2 to 30 years, and pay a fixed coupon every 6 months.

Essentially, to decide between a Singapore T-bill and SGS bond, you just need to think about whether you would want to hold on this bond for a short period of time (6 months/1 year), or for a longer period of time. 

What's the yield on the Singapore T-bill?

The yield on the Singapore T-bill has stabilised after months of decline.

The cut-off yield on the 6-month T-bill in Singapore was at 3.05% in the recent auction on 2 January 2025.

With this rebound in the yield, it is above the best 6-month fixed deposit rate given that some banks have cut interest rates further.

What is the difference between T-bill to SGS Bonds?

SGS bonds have a maturity of 2 to 30 years, while T-bills have a shorter maturity of 6 or 12 months.

SGS bonds pay interest every 6 months. T-bills do not have coupon payments; instead they are issued at a discount to the face value of the bond.  

What is the difference between T-bill and SSB?

T-bills offers a fixed interest rate, while SSBs offer interest rates that increase the longer you hold.

T-bill have maturities of 6-months and a year, while SSBs offer a flexible investment period with a 10-year maturity.

T-bills have a minimum investment amount of S$1,000, while SSBs have a minimum investment amount of S$500.

For SSBs, there is an overall cap of S$200,000 per individual. For T-bills, there are caps to the limits for each auction, though such limits are typically above S$1 million.

SSB interest rate will be determined before application and T-bill interest rate will be determined by auction.

SSBs offers the flexibility of redeeming in any month. T-bills can be traded in the secondary market but the price may be above or below what you paid if they are sold before maturity.

What are the risks of buying T-bills in Singapore?

All investments come with risks, even for T-bills which are backed by the Singapore government.

#1 - Singapore T-bill has less flexibility compared to SSBs

Like any other bonds, the Singapore T-bill is subject to interest rate risks. This means that when interest rates go up, the price of the bond may come down. Hence, you might suffer capital losses if you were to sell the bond before its maturity date. 

If liquidity is important to you, this is something you will need to be aware of before buying the SGS bonds. 

This is where the Singapore T-bills might come in handy, as they have a shorter maturity period compared to the SGS bonds. 

As a result, you are committing to a shorter period of 6 months or 1 year, where hopefully the likelihood of you having to sell the bond is also lower. 

If you want the flexibility of redeeming your investment in any given month, do consider the Singapore Savings Bonds as an alternative.

#2 - Singapore T-bills are less easy to buy and sell after issuance

After you have been issued the Singapore T-bill, it may not be easy to buy or sell them in the secondary market before they mature. 

You will have to visit the main branches of the banks (DBS, OCBC or UOB), and indicate whether you are using cash, SRS or CPF Investment Scheme (CPFIS) funds.

Thereafter, the bank will provide you with a quote on the Singapore T-bill. 

So while it is doable, it will not be as straightforward as pressing a button on your ibanking app!

#3 - No certainty on interest rate of T-bill at the point of subscription

If you were subscribing to the Singapore T-bill, you would not know what is the yield you are getting at the point of subscription. 

It is eventually determined based on demand and supply at the auction. If there is sudden spike in demand for the T-bill in Singapore, then you might be getting a lower yield. 

Looking at a recent auction for the 6-month T-bill Singapore on 5 January 2023, there was a total of S$12 billion of bids put in. 

It is worth noting that there are allotment limits for competitive and non-competitive bids at each auction.

All the successful bids were allotted the 6-month Singapore T-bill at the cut-off yield of 4.20% p.a.

To find out how to make a competitive bid, you can check our guide here and become a pro.

You can also consider building a bond ladder to maximise your passive income. 

The other thing to note here is that Singapore T-bills do not have coupon payments; instead, they are issued to you at a purchase price that is below the face value of the bond. Therefore, the yield that you get at maturity is the difference between the purchase price and the face value.

Sounds complicated? Here's how it works.

Using the 1-year T-bill in Singapore as an example, it has a face value of S$100. This is the amount of money you will receive for holding the bond till maturity, which in this case is 1 year.

If you pay $98 for purchasing the bond, your yield for holding on to the bond for one year can then be calculated as (S$100-S$98) / 98 x 100 = 2.04%.

In other words, you would have earned a return of 2.04%, having paid S$98 upfront, and receiving S$100 in one year's time.

Should I buy the Singapore T-bill with my CPF?

The yield on the T-bill in Singapore is now higher than the prevailing CPF interest rate. Read our analysis on whether it makes sense to invest in the T-bill Singapore using your CPF.

Also, do note that the use of CPFIS funds for investing in T-bills in Singapore is subject to CPF investment guidelines.

You can invest your OA savings after setting aside $20,000 in your OA. And you can invest your SA savings after setting aside $40,000 in your SA.

If you are interested, read here and learn how to buy T-Bills in Singapore using your CPF.

How do I buy T-bills in Singapore?

These are the upcoming key dates you need to know. You may check the full schedule of upcoming auction here.

What you will need for cash application: You can apply through DBS/POSB, OCBC and UOB ATMs and internet banking portal. You will also need an individual CDP account with Direct Crediting Services activated . This allows coupon and principal payments to be credited directly into your bank account.

What you will need for SRS application: You  can apply through the internet banking portal of your SRS Operator (DBS/POSB, OCBC, or UOB).

What you will need for CPFIS Application: 

• Read our step-by-step guide to applying via DBS.
• Read our step-by-step guide to applying via OCBC
• Read our step-by-step guide to applying via UOB. 

For CPFIS-OA investments, you will need a CPF Investment Account with one of the three CPFIS agent banks (DBS/POSB, OCBC, and UOB). There is no need to open any CPF Investment Account if you wish to invest CPFIS-SA funds.

Applications through ATMs and internet banking may close 1 to 2 business days before the auction, as your bank will need to process the application before the auction closes. Do check with your bank for the exact cut-off time for the different application channels.

The minimum bid amount for T-bills in Singapore is S$1,000. So you need to start by deciding how much you want to invest, in multiples of S$1,000.

For new T-bill issues in Singapore, the full bid amount will be deducted from your account at the point of application. So do make sure you have sufficient funds in the account you are using to apply. 

If your bid is unsuccessful, the money will be refunded into the account used to make the application. The refund will be shown in your account 1-2 business days after the auction day.

What is the difference between a competitive and non-competitive bid?

In a non-competitive bid, you only need to specify the amount you want invest, but not the yield. You may choose this option if you wish to invest regardless of the interest rate or if you are unsure of the yield to bid. By putting a non-competitive bid, you will be receiving the bond at the cut-off yield.

In a competitive bid, you can specify the yield you are willing to accept. You may submit a competitive bid if you wish to invest in the bond only if the yield is above a certain level. However, you may not get the full amount you applied for, depending on how your bid compares to the cut-off yield. 

How do I know if my T-bill subscription is successful?

After an auction closes, you can check the aggregate results of the auction about an hour later on the issuance calendar.

The T-bills in Singapore are issued 3 business days after the results are announced.

If your bid is successful, the securities will be reflected in your respective accounts after the issuance date. 

• For cash applications: You can check your CDP statement
• For SRS application: You can check the statements from your SRS Operator (DBS/POSB, OCBC and UOB are SRS operators)
• For CPFIS-OA application: You can check the CPFIS statement sent by your agent bank (DBS/POSB, OCBC and UOB are CPFIS agent banks)
• For CPFIS-SA application: You can check your CPF statement