Singapore Savings Bonds (SSB) 10-year return at 1.99%. Better than T-bills and fixed deposits?

What happened?

I've been trying to find safe places to park my cash to earn an attractive yield with the recent market volatility.

I previously compared SSBs with T-bills, fixed deposits and savings accounts in March 2026.

With the escalation in the Middle East conflict, the US Federal Reserve has warned about higher inflation and US government bond yields have moved higher.

That has also put more attention on the latest Singapore Savings Bond (SSB), which offers a 10-year average return of 1.99%.

This is higher than the latest 6-month T-bill yield and the best fixed deposit rates in Singapore, making the SSB an option worth a closer look for those seeking a relatively safe way 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 1.99%

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 1.36%.

If you hold on to the SSB for 10 years, you will receive an average return of 1.99% per year.

The 10-year average return of 1.99% is below the rate of 2.16% p.a. offered by the previous SSB.

SSB 1-year rate higher than the best 3-month and 9-month fixed deposit rate in Singapore

The 1-year rate of 1.36% p.a. is slightly higher than the best 3-month fixed deposit rate of 1.30% and best 9-month fixed deposit rate of 1.32%.

However, it is lower than the best 6-month fixed deposit rate of 1.50% p.a., and the best 12-month fixed deposit rate of 1.40% p.a..

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

The SSB 1-year rate of 1.36% is slightly below the latest 6-month Singapore T-bill yield of 1.37% on 12 March.

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

SSB interest rate projected to rise to around 2.08%

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 1.95% by 20 February 2026.

It has since rebounded, rising to around 2.12% as of 20 March 2026.

The recent uptick in the 10-year SGS yield was likely driven by renewed inflation concerns, as rising oil prices reduced expectations of near-term rate cuts.

As of 20 March 2026, the closing yield on the 10-year Singapore government bond stood at approximately 2.12%.

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

As of 20 March 2026, our SSB interest rate projection estimates that the next SSB may offer a 10-year average return of approximately 2.08%.

This estimate is based on the average closing yield of the 10-year Singapore Government Bond recorded so far in March, assuming the yield remains steady at 1.99% for the rest of the month.

Demand for SSB dropped in the latest issuance

With the slightly lower interest rates compared to T-bills and fixed deposits, demand for the March issuance of the SSB decreased.

Applications amounted to S$193 million, a huge decrease from the S$316 million in February.

This remains below the S$400 million of SSBs offered in the latest issuance.

What would Beansprout do? 

With the recent global geopolitical tensions, I have been evaluating my financial plan to make sure it offers me sufficient security and peace of mind.

The first step is to make sure I have sufficient cash put aside for emergency uses through my liquidity pot, where I would then put into a mix of savings accounts, fixed deposits, T-bills, SSBs and money market funds.

Then, I would see how I can earn a higher yield on this pot of emergency cash, while maintaining the liquidity I may need.

The latest issuance of the SSB offers a 1-year rate of 1.36%, and 10-year average return of 1.99%. 

The 1-year rate of 1.36% is slightly below the best 12-month fixed deposit rate, but higher than the best 3-month fixed deposit rate. 

The latest SSB also lets us lock in a rate of 1.99% over 10 years, while having the flexibility to redeem prior to maturity. 

With the 10-year average return on the next SSB projected to increase to around 2.08%, it may be worth applying for the next one rather than applying for the current SSB.

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.

By finding the best place to park my cash, I know that I have a stable base for the rest of my portfolio to stay invested through markets ups and downs. 

When this pot is properly set up, I know I can ride through market volatility without being forced to sell my investments at the wrong time.

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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 26 March (Thursday). Redemption of SSBs will also close at 9pm on 26 March (Thursday).

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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