Singapore Savings Bonds (SSB) 10-year return at 2.11%. Better than fixed deposits and T-bills?

What happened?

Singapore Savings Bond (SSB) yields have dipped slightly in May 2026.

The latest SSB offers a 10-year average return of 2.11%, down slightly from 2.14% p.a. in the previous month’s issuance.

Earlier, I compared the Singapore Savings Bond (SSB) with fixed deposits, T-bills and savings accounts in May 2026.

While the latest SSB yield is slightly lower than before, its 10-year average return of 2.11% p.a. remains above the best fixed deposit rates in Singapore and the latest 6-month T-bill yield.

This may make the SSB worth considering for those looking for a relatively safe way to earn passive income in Singapore.

In this article, I'll examine whether it is worth applying for the current SSB or waiting for the next one.

Latest SSB offers 10-year average interest rate of 2.11%

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 1.46%.

If you hold on to the SSB for 10 years, you will receive an average return of 2.11% per year.

The 10-year average return of 2.11% is lower than the rate of 2.14% p.a. offered by the previous SSB in April 2026.

SSB 1-year rate lower than best 1-year fixed deposit rate in Singapore

The 1-year rate of 1.46% p.a. is now lower than the best 12-month fixed deposit rate of 1.60% p.a.

It is higher than the best 3-month fixed deposit rate of 1.35%, but lower than the best 6-month fixed deposit rate of 1.50% p.a.

SSB 1-year rate is slightly higher than latest 6-month Singapore T-bill yield

The SSB 1-year rate of 1.46% is slightly higher than the latest 6-month Singapore T-bill yield of 1.45% on 22 May.

It is on par with the 1-year Singapore T-bill yield of 1.46% on 16 April.

SSB interest rate projected to rise to around 2.12%

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 rose sharply to around 2.4% in late March 2026, before easing in April. It has since climbed again in May, and stood at around 2.15% as of 22 May 2026.

This suggests that bond investors are still weighing inflation and interest rate uncertainty. While yields have pulled back from their late-March peak, they remain above the lows seen earlier this year.

The renewed climb in May also mirrors broader weakness in global bond markets, as longer-term yields have come under pressure from inflation concerns, fiscal worries and geopolitical uncertainty.

As of 22 May 2026, the closing yield on the 10-year Singapore government bond stood at approximately 2.12%.

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

As of 23 May 2026, our SSB interest rate projection estimates that the next SSB may offer a 10-year average return of approximately 2.12%.

This estimate is based on the average closing yield of the 10-year Singapore Government Bond recorded so far in May, assuming the yield remains steady at 2.12% for the rest of the month.

Demand for SSB increased in the previous issuance

With the increase in the 10-year average return to above 2% in the previous SSB issuance, demand have increased.

Applications amounted to S$244 million in May 2026, up from S$169 million in April 2026.

However, this remains below the S$300 million of SSBs offered in the latest issuance.

What would Beansprout do? 

With global markets still facing uncertainty, I would first make sure that my financial plan gives me enough 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.

Once that base is in place, I would then look at how I can earn a potentially higher yield on my spare cash without giving up too much flexibility.

The latest issuance of the SSB offers a 1-year rate of 1.46%, and 10-year average return of 2.11%.

The 1-year rate of 1.46% is now lower than the best 12-month fixed deposit rate, but still higher than the best 3-month fixed deposit rate. It is also slightly higher than the latest 6-month Singapore T-bill yield.

However, the SSB remains useful for cash that I may want to keep safe over the longer term, while still having the option to redeem before maturity. 

The latest SSB lets us lock in a rate of 2.11% over 10 years, while having the flexibility to redeem prior to maturity.

That said, with the 10-year average return on the next SSB projected to increase to around 2.12%. If I do not need to deploy my cash immediately, I may consider waiting for the next issuance instead.

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 setting up my Liquidity Pot properly, I know that I have a stable base for the rest of my portfolio. This allows me to ride through market volatility without being forced to sell my investments at the wrong time. Learn more about the liquidity pot here.

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 25 May 2026 (Monday). Redemption of SSBs will also close at 9pm on 25 May 2026 (Monday).

You can sign up for an 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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