Singapore T-Bills: The Complete Guide (2026)
Table of Contents
What Are T-Bills?
T-bills (Treasury bills) are short-term Singapore Government Securities (SGS) — essentially a loan to the Singapore Government that you’re repaid in full at the end of a fixed term. They come in two tenors: 6 months and 1 year. There’s no coupon paid partway through; instead, you buy at a discount to face value and receive the full face value back at maturity. The gap between what you paid and what you get back is your return.
They’re backed by the Singapore Government, which carries the top sovereign rating — AAA from S&P and Fitch, Aaa from Moody’s — a rating Singapore has held continuously and one only a handful of countries share. That makes default risk about as close to zero as a retail investment gets, provided you hold to maturity.
The trade-off for that safety: T-bills cannot be redeemed early. If you need the cash before maturity, your only option is selling on the secondary market through a bank branch, at whatever price the market offers that day — which may be a gain or a loss, and retail secondary-market liquidity for T-bills is thin, so the probability of exiting at fair value is low.
Where Yields Actually Stand Right Now
The numbers below are a snapshot of the current yields. For latest yield information, check MAS’s T-bills information for the live figure before you apply.
| Issue | Cut-off yield | Issue date |
|---|---|---|
| 6-month T-bill (BS26115N) | 1.59% p.a. | 4 Aug 2026 |
| 1-year T-bill (BY26102T) | 1.68% p.a. | 28 Jul 2026 |
Competitive vs Non-Competitive Bids
Non-competitive bid — you specify only the amount, not the yield. You accept whatever the auction’s cut-off yield turns out to be. This is what almost every retail investor should use: you’re guaranteed the market rate, and you’re not trying to out-guess an auction you have no visibility into.
Competitive bid — you specify both the amount and the minimum yield you’ll accept. If your bid yield is at or below the cut-off, you get allotted at the cut-off yield (never worse than what you asked for). If your bid is above the cut-off, you get nothing. Competitive bids are allotted starting from the lowest yield requested upward, until the non-competitive allocation and the issuance size are exhausted.
The one legitimate reason a retail investor uses a competitive bid: guaranteeing full allocation on a popular auction (see Hack #1 below).
Who Can Apply
Anyone 18 or older — Singaporeans, Permanent Residents, and non-residents can apply for Singapore T-Bills.
T-Bills vs the Alternatives
| Instrument | Yield (snapshot) | Lock-in | Access before maturity | Min. investment |
|---|---|---|---|---|
| 6-month T-bill | 1.59% p.a. (4 Aug 2026) | 6 months | Secondary market only, thin liquidity | S$1,000 |
| 1-year T-bill | 1.68% p.a. (28 Jul 2026) | 12 months | Secondary market only, thin liquidity | S$1,000 |
| Singapore Savings Bond | ~1.46% yr 1 / ~2.06% 10-yr avg (Jul 2026 tranche) | None | Redeem any month, no penalty | S$500 |
| Best 6-month fixed deposit | ~1.50% p.a. (Jul 2026) | 6 months | Early withdrawal usually forfeits interest | Varies by bank |
| CPF Ordinary Account | 2.5% p.a. (statutory floor) | None | Withdrawal restricted pre-55; usable for approved schemes | N/A |
Figures are updated as of Aug 2026
The gap between T-bills and a plain fixed deposit has narrowed to almost negligible at current yields. Before committing to T-bills, be sure to compare it to other alternatives for better yields.
How to Apply for T-Bills
Note that applications are not amendable or revocable once submitted.
Method 1: Cash
- Open a CDP account with Direct Crediting Service (DCS) activated. DCS is how CDP pays your discount refund and maturity proceeds into your bank account. Without a DCS activated, your application may be rejected. Apply for the CDP account via the SGX website.
- Have a local bank account with DBS/POSB, OCBC, or UOB.
- Apply via ATM, internet banking, or mobile banking apps. You’ll need your CDP account number and sufficient funds in your linked bank account.
- Wait for the allotment result. Applications typically close 1–2 business days before the auction (exact cut-off varies by bank).
- Get paid. Funds for the full face-value amount are deducted at the point of application. The discount — effectively your return — is credited back into your account within 1–3 business days after the auction. The remaining principal comes back in full at maturity.
Method 2: CPF Investment Scheme (CPFIS)
- If you’re 55 or older: your CPF Special Account will be closed once you turn 55 years old, and its balance moved to your Retirement Account (up to your cohort’s Full Retirement Sum) and Ordinary Account (any excess). CPFIS-SA is no longer available for new T-bill purchases. Your only CPFIS route now is CPFIS-OA, and you’ll need to keep at least S$20,000 in your OA before investing the rest.
- If you’re under 55: you still have both routes. You can invest your OA savings after setting aside $20,000 in your OA and invest your SA savings after setting aside $40,000 in your SA.
For OA, opening a separate CPF Investment Account with one of the three local banks is required. For SA (under-55 only), no separate account is needed — you invest directly. Mode of application is dependent on the bank you choose to use.
Important things to note: the money that you committed will stop earning CPF interest. If you are using your OA funds, the money can’t be used for a housing purchase in the meantime.
Method 3: Supplementary Retirement Scheme (SRS)
- Open an SRS account at any branch of the three local banks, if you don’t already have one.
- Apply via your bank’s internet banking.
- Ensure your SRS account holds enough to cover the application.
- Funds are earmarked upon application and deducted within 1–3 business days after the auction; the proceeds are returned to your SRS account.
What Your Return Actually Looks Like
Example: How a 6-Month T-Bill Actually Pays Out
Using the most recent 6-month auction, BS26115N — auctioned 30 Jul 2026, issued 4 Aug 2026, cut-off yield 1.59% p.a.
| When | What happens | Cash flow |
|---|---|---|
| ~27 Jul 2026 (before application closes) | You apply for $10,000 face value, non-competitive bid | −$10,000 |
| 30 Jul 2026 — auction | Cut-off yield set at 1.59% p.a. | — |
| Within 1–3 business days of auction | Discount credited back to your account | +$78.65 |
| 4 Aug 2026 — issue date | T-bill now sits in your CDP account; you’ve effectively paid $9,921.35 for $10,000 face value | — |
| ~4 Feb 2027 — maturity, 6 months later | Face value paid out in full | +$10,000 |
| Net profit over ~6 months | +$78.65 |
How to get the returns:
The quick version:
$10,000 × 1.59% ÷ 2 = $79.50
The actual calculation:
MAS discounts the price using the exact day-count of the issue (exact count can differ by a day or two), not a flat half-year:
Price = $10,000 ÷ (1 + 1.59% × 182/365) = $9,921.35
Return = $10,000 − $9,921.35 = $78.65
The entire return is realized once, with the discount refunded a few days after the auction, while the principal returned back at maturity.
Should You Invest in T-Bills?
In favour:
- Short, defined horizon (6 or 12 months) — useful if you know when you’ll need the cash back (a wedding, a car, a house deposit).
- Low entry point: $1,000 minimum, $1,000 increments.
- About as close to default-risk-free as a Singapore-dollar investment gets.
- Interest (technically, the discount) is tax-exempt for individual investors under the Qualifying Debt Securities scheme.
Against:
- Reinvestment risk is high. Interest rates are falling and the investment time horizon is considered short, of half or one year.
- Illiquid before maturity — selling early means the secondary market, at whatever price is on offer, with thin retail liquidity.
- The yield isn’t known until after the auction closes, so you’re committing before you see the number.
T-Bill Hacks
Get Full Allocation on a Popular Auction
Non-competitive bids get pro-rated when an auction is oversubscribed. To guarantee full allocation, submit a competitive bid at a yield noticeably below the recent trend (check the last few cut-off yields on MAS’s site first). Competitive bids are allotted from the lowest requested yield upward, so a deliberately low ask guarantees you get filled — at the cost of some yield if the actual cut-off comes in higher than what you’d have accepted anyway. You won’t do worse than your stated floor.
The Laddering Strategy
6-month T-bills auction roughly every two weeks. If you want monthly liquidity events, enter one auction every four weeks (skipping every other one) for six months running, building six staggered $10,000 tranches (or whatever unit size suits your capital). From month seven onward, one tranche matures every month, and you decide fresh each time whether to roll it into the next T-bill or redirect it elsewhere. This also spreads your reinvestment risk across six different cut-off yields instead of betting everything on one auction’s rate.
FAQ
What’s the minimum investment for T-bills in Singapore?
S$1,000, in multiples of S$1,000, up to a S$1 million cap on non-competitive applications and an overall 15% of the auction’s issuance size per individual across competitive and non-competitive bids combined.
Are T-bills better than fixed deposits right now?
At current yields, both T-bills and fixed deposits have very similar yields. Sometimes, banks may run promotional FD rates, so do compare them before deciding.
Can I still buy T-bills with my CPF Special Account?
Only if you’re under 55. Special Account (SA) is closed once you turn 55 years old. CPFIS-OA remains available regardless of age.
Is T-bill interest taxable in Singapore?
No — it’s tax-exempt for individual investors under the Qualifying Debt Securities scheme. Local bank deposit interest and CPF interest are also tax-exempt for individuals.
Can foreigners buy Singapore T-bills?
Yes. Anyone 18 or older can apply, regardless of citizenship or residency status.
What happens if I need my money before the T-bill matures?
You can’t redeem early. Your only option is selling on the secondary market through a bank branch, at the prevailing market price — which may be above or below what you paid, and retail liquidity is thin.
How often are new T-bills issued?
6-month T-bills auction roughly every two weeks (about 26 times a year); 1-year T-bills auction quarterly.
Competitive or non-competitive bid — which should I choose?
Non-competitive, for most people — you’re guaranteed allocation at the market cut-off yield. Use competitive only if you specifically want to guarantee full allocation in an auction you expect to be oversubscribed.
How do you check your existing T-Bills investment?
You can easily check your existing T-Bill investment using the CDP portal offered by MAS if you purchase them in cash and the SRS/CPF portal if you purchase them in SRS/CPF funds.
This article is for general educational purposes and does not constitute financial advice. TheBoringCFO is not a licensed financial adviser.
