Singapore Savings Bonds (SSB) 10-year return at 2.25%. Better than T-bills and fixed deposits?

What happened?

It has been getting harder to find safe places to park our cash to earn an attractive yield.

This was why I took notice when I saw that the latest issuance of the Singapore Savings Bonds (SSB) offers a 10-year average return of 2.25%. 

When comparing SSBs with T-bills, fixed deposits and savings accounts in January 2026, it was clear that the 10-year average return is higher than the latest 6-month T-bill yield and the best fixed deposit rates in Singapore, making it an attractive option to to earn passive income in Singapore.

In this article, I will be sharing more about the SSB to find out if its worthwhile applying for the current SSB or wait for the next one. 

Latest SSB offers 10-year average interest rate of 2.25%

The latest SSB issuance offers a relatively attractive interest rate.

If you hold on to the SSB for 1 year, you will receive an average return of 1.35%.

If you hold on to the SSB for 10 years, you will receive an average return of 2.25% per year.

The 10-year average return of 2.25% is above the rate of 1.99% p.a. offered by the previous SSB.

SSB 1-year rate below best 6-month fixed deposit rate in Singapore

The 1-year rate of 1.35% is lower than the best 3 month and 6 month fixed deposit rate in Singapore of 1.45%.

However, it is higher than the interest rate of 1.30% p.a. for a 12 month tenure on the GXS Boost Pocket, and the best 9-month and 12-month fixed deposit rate of 1.20%. 

SSB 1-year rate slightly below 6-month Singapore T-bill yield 

The SSB 1-year rate of 1.35% is slightly below the latest 6-month Singapore T-bill yield of 1.39% on 15 January.

It is also below the latest 1-year Singapore T-bill yield of 1.44% on 22 January.

SSB interest rate projected to dip slightly to around 2.17%

For those new to the Singapore Savings Bond (SSB), it’s important to understand that SSB interest rates are closely tied to the yields of Singapore Government Securities (SGS).

Similar to T-bills, SGS are bonds issued by the Singapore government. But, they have a longer maturity of 2 years to 30 years.

The interest rates on each SSB issuance are linked to the daily average SGS yields as published by MAS in the previous month.

This means the 10-year average return of the upcoming SSB will largely mirror the yield of the 10-year Singapore government bond or SGS observed this month.

As shown in the chart below, the 10-year SGS yield reached a high of above 2.3% at the end of 2025, before declining to reach around 2.1% as of 23 January 2026.

The decline in the 10-year SGS yield is largely driven by firm demand for the Singapore government bond amid global geopolitical uncertainty.

As of 24 January 2026, the closing yield on the 10-year Singapore government bond stood at approximately 2.13%.

Based on the average yield observed in December, the 10-year average return for the next SSB is likely to be lower than the current issuance. 

As of 24 January 2026, our SSB interest rate projection estimates that the next SSB may offer a 10-year average return of approximately 2.17%.

This estimate is based on the average closing yield of the 10-year Singapore Government Bond recorded so far in January, assuming the yield remains steady at 2.13% for the rest of the month.

Demand for SSB rises in the latest issuance

Driven by relatively attractive interest rates compared to T-bills and fixed deposits, demand for the January issuance of the SSB increased.

Applications amounted to S$211 million, an increase from the S$179 million in October.

However, this remains below the S$400 million of SSBs offered in the latest issuance.

What would Beansprout do? 

The latest issuance of the SSB offers a 1-year rate of 1.35%, and 10-year average return of 2.25%. 

The is slightly below the 1-year T-bill yield, but above the best 12-month fixed deposit rate.

The latest SSB also lets us lock in a rate of 2.25% over 10 years, while having the flexibility to redeem prior to maturity. 

With the 10-year average return on the next SSB projected to decrease to around 2.17%, it may be worth applying for the current one rather than waiting for the next SSB. 

I would consider the SSB mainly for the opportunity to lock in the yields for a period of up to 10 years, to mitigate the risk of interest rates falling further. 

If you are looking for the best place to park your savings, we compare SSBs to T-bills and fixed deposits to find out how to allow our spare cash to work harder.

To find out other ways to make your savings work hard, check out our guide to best ways to earn a passive income in Singapore.

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To find out how much more interest you can potentially earn by swapping your previous bonds to the current, check out our SSB swap calculator.

Application for the latest SSB will close at 9pm on 27 January (Tuesday). Redemption of SSBs will also close at 9pm on 27 January (Tuesday).

You can sign up for a email reminder to be reminded of future SSB closing dates.

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Learn more about SSBs and how to apply for SSBs using our comprehensive SSB guide. 

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