July 21, 2024


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Fix Deposit vs Singapore Savings Bonds vs T-Bills : How to earn high interest in Singapore | The Wacky Duo

5 min read
Fix Deposit vs Singapore Savings Bonds vs T-Bills : How to earn high interest in Singapore | The Wacky Duo

Want to earn substantial fascination for your savings 

For the previous few yrs, earning superior fascination in reduced-chance products and solutions has been
virtually difficult in Singapore. Help you save for CPF delivering 2.5% for Common
Accounts and 4% for Specific Accounts, putting money in banking institutions for even bonds
will produce marginal returns of 1-2%.

With the latest increase in curiosity rates, 1 would have a lot more choices now to
increase their yields from savings. The 3 products and solutions with the least hazard in the
current market currently will be Fixed Deposit, Singapore Saving Bonds and T- Bills. 
If you are curious about which possibility is the ideal for you, below is a summary
of every product or service.

Preset Deposit (FD)

Preset Deposits are ordinarily positioned with banks in Singapore. A sum of funds is
blocked for a fixed deposit as for every decided by the lender. The interest is
presented at the start out of the fixed deposit. At the finish of the period of time, you
would get back the principal and the desire gained from the FD. Interests
are tax exempted.

Presently, one of the maximum FD fees more than 1 year is supplied by RHB at 3.4%.
You can verify the
most recent FD charges for Singapore financial institutions
listed here.

Min investment: Typically from $5,000, although some financial institutions prefer a larger
amount of money (eg $20,000). It does not need to have to be in multiples of $1000


  • One particular of the least complicated strategies to get high curiosity.
  • The Deposit Insurance policy Scheme guards up to $75,000 of your whole deposit in
    the bank.


  • If you require funds, you have to have to crack the FD. Some banks may perhaps not give
    interest if it is not retained in the agreed period.
  • Fascination might vary from preliminary placement and is often much reduced if you
    split your FD early. 
  • Some banking companies cost penalties for breaking FD

How to apply?

An application can be produced at the bank around the counter or on-line for selected
banking institutions. 

Money is to be made use of to area Fix Deposit. There are no selections for CPF money.
SRS money may possibly location in FD but at a a great deal decreased charge.


No costs for placement

Appropriate For

These who would choose fuss-free investment decision.

Singapore Savings Bonds (SSB)

These are issued by Singapore Govt with the principal certain by the
authorities. SSB is generally issued for 10 a long time. Investors will get coupon
payments each individual 6 months, and the discount codes tend to increase above time. Returns
are tax exempted.

Minimal Volume to devote: $1,000 and in multiples of $1000


  • Interest will be recognized throughout the entire 10 many years, hence taking out
    guesswork from investment decision.
  • Investors can withdraw at any presented thirty day period with no penalty. Accrued interest
    will be returned nowadays with the principal.
  • Buyers can opt for to reinvest their money at the new SSB if the cap is
    not attained.
  • Suited for small quantities.
  • SRS resources can be utilized for investment.


  • Fascination rates are locked in, and you may well be ‘stuck’ at a decrease level unless
    you redeem.
  • There is a cap of SGD 200K for the overall financial commitment
  • 1st-calendar year amount may not be as desirable as FD
  • You need an unique CDP account and can only spend with the chosen
    banking companies (DBS, OCBC, UOB)
  • You may possibly not get whole allocation if the desire outstrips source. That would
    imply some funds will be left idle.

How to utilize

  • SRS is open up to people today aged 18 several years and previously mentioned. You want an account
    with a person of the a few neighborhood banks and an person CDP account.
  • Use via DBS/POSB, OCBC and UOB ATMs of Web Banking or OCBC
    cellular application. SRS buyers may perhaps apply by their respective SRS
    Operator’s World-wide-web banking
  • Redemption can be accomplished in any offered thirty day period just before the bond matures with no
    penalty. You will be paid out principal and accrued interest.
  • The software will near on the 4th working working day prior to the conclusion of the
    thirty day period at 9pm.


$2 for each transaction ( getting and promoting)

Suitable for

These who are looking for a regular stream of profits. It is also superior for
prolonged-expression traders who can park their funds for a lengthier interval.

Singapore Treasury Charges (T-Payments)

T-bills are limited-phrase Singapore Govt Securities issued at a price reduction to
their face price. Traders will obtain the full facial area worth at maturity. They
are readily available in 6thirty day period or 1-year T-expenses. T-expenses are AAA credit rating rated, and
you can purchase with Income, SRS and CPF. Returns are tax exempted.

Bare minimum Sum: $1000 and multiples of $1000



  • Liquidity hazard – You can market but at market rate. The principal is not
  • You have to deal with re-expense risk at a lower rate in comparison to SRS account.
  • May possibly not normally get the total volume.

*Competitive vs non-aggressive bids

Aggressive: You can pick out a baseline of what produce you might want to take.
Need to the Reduce off generate be greater, you will get the T-monthly bill at the minimize of
yield. In most cases, you ought to get a entire allocation, specially if you place a aggressive bid beneath the said yield.  Do your maths properly and do not around-dedicate. 


Bid for 3%

Eventual produce: 3.5%

You will get 3.5%

If the eventual generate is a lot less than 3% ( eg 2.95%), you will get practically nothing.

Non-Competitive: You will accept the slash-off yield from the auction. 

How to apply?

You can implement by way of income, SRS or CPF.

For dollars software
You require a lender account with DBS/POSB, OCBC,
or UOB. You will also will need an personal CDP account with Direct Credit history
Expert services activated. Utilize by using ATM or world-wide-web banking.

For SRS application

You will have to have an SRS account with DBS/POSB, OCBC or UOB. Utilize under web
banking portal or the SRS operator

For CPFIS application

For CPFIS-OA, you will will need a CPF expense account with a person of 3 CPFIS
agent banking institutions ( DBS/POSB, OCBC, UOB). if you are investing working with CPFIS-SA cash,
there is no want to open up any CPD investment decision account. YOu will need to have to submit
an software in man or woman at any financial institution of the CPFIS bond dealers.


$2 per transaction for picked financial institutions. Some banks will also cost for custodian fees on quarterly foundation.

Appropriate for

Individuals with a shorter time horizon would like increased prices than FD. This is
far more suited for very well-versed investors due to the specifications.

This is not meant as financial commitment guidance but as details on what is
readily available.. Each personal has their have threat urge for food. For economical
setting up, it is best to seek the advice of your financial planner for assistance.

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