SSB 10-year return at 1.85%. Better than fixed deposits and T-bills?

What happened?

Many in the Beansprout community have been discussing the best way to earn a higher yield on their savings, especially with today’s changing interest rate environment. 

When comparing T-bills vs fixed deposits vs savings accounts to park your cash in November 2025, I touched on the latest issuance of the Singapore Savings Bonds (SSB), which has a 10-year average return of 1.85%. 

This is higher than the latest 6-month T-bill yield and the best fixed deposit rates in Singapore, and makes 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 1.85%

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 1.85% per year.

The 10-year average return of 1.85% is above the rate of 1.83% 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 1.40%.

It is also below the interest rate of 1.38% p.a. for a 12 month tenure on the GXS Boost Pocket.

However, it is higher than 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 T-bill yield of 1.39% on 20 November.

However, it is similar to the latest 1-year T-bill yield of 1.35% in the auction on 15 Oct 2025. 

SSB interest rate projected to stay increase to 1.94%

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 has a downward trend from May 2024 to October 2025, before bouncing up in November 2025.

The bounce up reflects falling expectations of US Federal Reserve interest rate cuts, as well as falling demand for safe haven assets such as Singapore government bonds. 

As of 20 November 2025, the closing yield on the 10-year Singapore government bond stood at approximately 1.97%.

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

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

As of 20 November 2025, our SSB interest rate projection estimates that the next SSB may offer a 10-year average return of approximately 1.94%.

This estimate is based on the average closing yield of the 10-year Singapore Government Bond recorded so far in November, assuming the yield remains steady at 1.97% for the rest of the month.

Demand for SSB fell in the latest issuance

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

Applications amounted to S$227 million, a decrease from the S$283 million in October.

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  1-year rate of 1.35%, and 10-year average return of 1.85%. 

The is slightly below the 6-month T-bill yield, and the best 6-month fixed deposit rate.

However, it is on par with the 1-year T-bill yield, and the interest rate on the GXS Boost Pocket for a 12-month tenure.

The latest SSB 1-year rate is also above the best 12-month fixed deposit rate.

The latest SSB also lets us lock in a rate of 1.85% over 10 years, while having the flexibility to redeem prior to maturity. 

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. 

With the 10-year average return on the next SSB projected to remain at about 1.94%, it may worth waiting for the next SSB rather than to apply for the current one.

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 25 November (Tuesday). Redemption of SSBs will also close at 9pm on 25 November (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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