Is StashAway Simple Guaranteed a good alternative to T-bills?

What happened?

T-bill yields in Singapore have been on a steady decline.

After peaking at 4.07% in September 2024, the yield on the 6-month Singapore T-bill has slipped to 2.30% in May 2025. 

This led some investors to ask if there are alternatives that we can consider to earn a guaranteed return on our savings.

The rise of popular guaranteed cash management solutions like StashAway Simple^TM Guaranteed offers investors a way to earn a fixed rate over a few tenures. 

As such, we decided to find out more about Simple Guaranteed, and understand if it might be a good alternative to T-bills. 

What’s StashAway Simple^TM Guaranteed?

Simple Guaranteed is a cash management portfolio that places your funds into a fixed deposit. 

As its name suggests, it offers a simple and hassle-free way to earn a guaranteed rate on your cash. 

The key features of StashAway Simple^TM Guaranteed are:

• Earn a guaranteed rate
• Tenures of 1, 3, 6, 12 months available
• No minimum or maximum deposit amounts
• Underlying funds are put into fixed deposits at MAS-regulated banks
• Invest your cash or SRS.

#1 – Guaranteed rate 

If you’re looking to earn a stable return on your idle cash, without the uncertainty of market movement, StashAway Simple™ Guaranteed offers a straightforward solution.

You choose a lock-in period that suits your goals, whether it's just 1 month or up to 12 months. 

In return, you get a guaranteed return that stays fixed for the entire duration. 

It’s a flexible option for short-term savings or planning ahead for upcoming expenses.

The guaranteed rate you receive is made possible because your funds are placed in fixed deposits with MAS-licensed banks. 

And what you see is truly what you get. 

There are no management fees, no hidden charges, and no surprises. 

StashAway earns a small margin from the difference between the bank’s yield and the rate offered to you.

Just one thing to note: rates may vary depending on the day you invest, so it’s always worth checking the latest rates on StashAway before locking in your funds.

#2 – No minimum and maximum investment amount 

There is no minimum and maximum investment amount for Simple Guaranteed. 

You can earn the guaranteed rate starting from as little as $1.

However, you should make sure that you will not require the cash during the lock-in period, as you will not be able to withdraw your cash until the tenure ends.     

#3 – Simple way to earn a guaranteed rate

You can start earning the guaranteed rate in a few simple steps. 

There are no hoops to jump through, no lengthy processes or paperwork, or complex requirements. 

For example, you will not need to deposit fresh funds, as existing funds on StashAway can earn the guaranteed rate too. 

There is also no need to meet any minimum salary deposit or credit card spend to earn the guaranteed rate.

What are the risks of StashAway Simple^TM Guaranteed?

#1 –Simple Guaranteed is not SDIC insured

It is important to note that SDIC coverage will not be applicable to your funds in Simple Guaranteed on an individual level.      

This is because SDIC insurance applies only to StashAway as a firm to the value of S$75,000 

However, StashAway only partners with MAS-regulated banks that are subject to stringent regulations. 

If you are not familiar with StashAway (Asia Wealth Platform Pte Ltd), it is one of the top 5 fastest-growing companies in Singapore in 2023 according to The Straits Times. 

The company is regulated by the Monetary Authority of Singapore (MAS), and has more than US$1 billion in assets under management since 2021. 

You can learn more about how StashAway keeps your money secure here.    

How does StashAway Simple^TM Guaranteed compare with fixed deposits?

Simple™ Guaranteed offers a return that’s generally in line with, or in some cases, higher than, what you’d get from traditional fixed deposits across similar tenures. 

But where it really stands out is in its accessibility and ease of use.

Unlike most fixed deposit accounts that require a minimum deposit (typically S$500 or more), Simple Guaranteed has no minimum investment. 

That means you can start earning guaranteed returns, even with a small sum.

Your funds are still invested in fixed deposits with MAS-licensed banks but through StashAway’s platform, so you don’t have to shop around or commit to a bank-specific account.

It’s important to note that, unlike traditional fixed deposits, Simple Guaranteed is not covered by SDIC insurance.

However, the funds are placed with reputable banks regulated by MAS, and you always know the exact rate you’re locking in, no hidden fees, no surprises.

Here’s a quick side-by-side comparison:

How does StashAway Simple^TM Guaranteed compare with T-bills?

When it comes to short-term, low-risk investments, both T-bills and StashAway Simple™ Guaranteed offer attractive options. But they work in very different ways.

With Simple Guaranteed, you lock in a fixed return from the start. That means no surprises, what you see is what you get. 

You also have the flexibility to choose from a range of tenures, from just 1 month to as long as 12 months, depending on your needs. 

On the other hand, while Singapore T-bills are backed by the government and considered very safe, the actual yield is only confirmed after the auction. You won’t know your return until your bid is successful.

And T-bills are only available in 6-months or 1-year tenure. 

There’s also a difference in accessibility. T-bills require a minimum investment of S$1,000. With Simple Guaranteed, you can start with any amount.

If you prefer certainty, flexibility, and a fuss-free way to earn on your cash, Simple Guaranteed could be a compelling alternative to T-bills, especially if you want to avoid the auction guesswork.

How does StashAway Simple^TM Guaranteed compare with savings accounts?

If you’re comparing ways to grow your cash, you might wonder how StashAway Simple™ Guaranteed stacks up against a regular savings account.

Unlike many savings accounts that offer base interest rates with extra hoops (like salary crediting, credit card spending, or investing), Simple Guaranteed gives you a fixed return with no strings attached. 

That said, there are a few trade-offs. While savings accounts offer instant access to your funds, Simple Guaranteed locks in your money for a set period (from 1 to 12 months). 

It's not designed for emergency access, but rather for cash you don’t need right away.

Also, keep in mind that while savings accounts are typically insured under SDIC, Simple Guaranteed is not covered, though your funds are placed in fixed deposits with MAS-regulated banks.

Here’s how they compare:

How does StashAway Simple^TM Guaranteed compare with other cash management accounts?

Cash management accounts such as StashAway Simple^TM and StashAway Simple^TM Plus also aim to help your cash work harder. 

However, your investment in Simple Guaranteed is parked in a fixed deposit with a MAS-regulated bank, while both Simple and Simple Plus invest in money market funds and bond funds.

This means that the returns on the Simple and Simple Plus can fluctuate based on interest rate movements and economic conditions, while the principal and interest amounts for Simple Guaranteed are guaranteed (subject to the underlying bank risk). 

What would Beansprout do? 

Even as bond yields soften, there are still ways to grow your cash without taking on unnecessary risk.

StashAway Simple™ Guaranteed offers a no-frills option if you're looking for a guaranteed return over a short lock-in period, with no hoops or hidden fees. 

While it’s not SDIC-insured, your funds are placed in fixed deposits with MAS-regulated banks, which helps manage risk.

It can be a useful parking spot not just for idle cash, but also for your SRS contributions if you haven’t decided where to invest them yet.

In short, if you're looking for peace of mind, flexibility in tenure, and a transparent way to make your cash work a little harder, Simple Guaranteed is worth considering.

Learn more about StashAway Simple Guaranteed here. 

Disclaimer

This advertisement has not been reviewed by the Monetary Authority of Singapore. 

Any information provided in this article is meant purely for informational and investor education purposes, and should not be relied upon as financial or investment advice, or advice on corporate finance.

This article is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to purchase any financial product or subscribe or enter any transaction. This article also does not take into account your personal circumstances, e.g. investment objectives, financial situation or particular needs and shall not constitute financial advice. You should consult your own independent financial, accounting, tax, legal or other competent professional advisors. 

The rate is correct at the time of publishing. Check the latest rates at https://www.stashaway.sg/simple-guaranteed

The information provided in this article are on an “as is” and “as available” basis without warranty of any kind, whether express or implied. Beansprout does not recommend any particular course of action in relation to any investment product or class of investment products. No information is presented with the intention to induce any person to buy, sell, or hold a particular investment product or class of investment products.

You may wish to seek advice from a financial adviser before making a commitment to purchase the product; and in the event that you choose not to seek advice from a financial adviser, you should consider whether the product in question is suitable for you.

The information provided herein may contain projections or other forward looking statements regarding future events or future performance of countries, assets, markets or companies. Actual events or results may differ materially. Past performance figures are not necessarily indicative of future or likely performance.

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