SSB 10-year return at 2.49%. Better than fixed deposits and T-bills?

What happened?

Interest rates have been falling in recent months.

The best 6-month fixed deposit rate in Singapore has fallen to  2.20% p.a. The yield on the 6-month Singapore T-bill also recently dipped to 2%. 

We recently shared about the best place to park our savings to earn a higher yield  in light of the fall in interest rates.

In the article, we highlighted that the latest Singapore Savings Bonds (SSB) issuance, which offers a 10-year average return of 2.49%, higher than both the T-bill and fixed deposit rates.

Following that, there have been questions in the Beansprout community on what’s the projected interest rate for the next SSB, and if it’s better to lock in the current issuance or wait for the next one.

Let's take a deeper look to find out. 

What to expect for the latest Singapore Savings Bonds (SSBs)

#1 – Current SSB offers 10-year average interest rate of 2.49%

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 2.06%.

If you hold on to the SSB for 10 years, you will receive an average return of 2.49% per year.

The 10-year average return of 2.49% p.a is below the rate of 2.56% p.a offered by the previous SSB. 

The 1-year rate of 2.06% is lower than the best 12-month fixed deposit rate in Singapore.

#2 – SSB interest rate projected to fall to about 2.31%

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 that the average annual return from the SSB over a given period (e.g., 10 years) would broadly reflect the yield of a comparable SGS (e.g., the 10-year SGS), but with about a one-month lag.

In other words, 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 has continued to trend downward through April and into June. 

This decline may be a sign of increased investor caution, with demand for safer assets like government bonds rising amid global uncertainties, such as concerns over Trump’s tariff policies.

As of 19 June 2025, the closing yield on the 10-year Singapore government bond was at 2.30%.

This is below the 10-year average return offered by the current SSB. 

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

As of 20 June 2025, our SSB interest rate projection estimates that the next SSB may offer a 10-year average return of approximately 2.31%.

This estimate is based on the average closing yield of the 10-year Singapore Government Bond recorded so far in June, assuming the yield remains steady at 2.30% for the rest of the month.

#3 – Demand for SSB has fallen in the latest issuance

Despite offering relatively attractive interest rates compared to T-bills and fixed deposits, demand for the June issuance of the SSB declined notably.

Applications amounted to only S$303 million, a drop from the S$432 million in the previous issuance that offered a 10-year average return of 2.56%.

With an amount offered of S$400 million for the current SSB, investors may receive full allocation if demand remains muted.

What would Beansprout do? 

The latest issuance of the SSB offers a 10-year average return of 2.49%. 

With the 10-year average return on the next SSB is projected to fall further to about 2.31%, it might be more worthwhile to apply for the current SSB rather than to wait for the next one. 

Apart from offering a higher 10-year average return compared to the 6-month Singapore T-bill yield and best 6-month fixed deposit rate, the latest SSB also allows us to lock-in a rate of 2.49% over 10 years, while having the flexibility to redeem prior to maturity. 

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

Applications for the latest SSB close at 9pm on 25 June (Wednesday). Redemptions of SSBs will also close at 9pm on 25 June (Wednesday).

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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