With the Singapore economy projected to slow down in 2025 after a strong performance in 2024, investors are facing a dynamic interest rate environment. Should you lock in Fixed Deposit rates today, or is it better to wait for potentially higher rates in the future?
Fixed Deposits have long been a popular choice for their guaranteed returns and stability. However, in this uncertain economic climate, it’s essential to consider whether alternatives like Singapore Savings Bonds (SSBs) and T-bills might offer better potential for your cash savings.
If both options hold out well, are Fixed Deposits still the best choice for your money, or should investors consider alternatives like SSBs & T-Bills? Let’s take a look at them.
Table of contents:
- What is a Fixed Deposit?
- Key Features of Fixed Deposits
- Latest Bank Fixed Deposit Rates in Singapore
- T-Bills vs SSBs vs Fixed Deposits: Which Should You Consider?
- What are Singapore Savings Bonds (SSB)?
- Key Features of Singapore Savings Bonds
- Latest Singapore Savings Bonds Interest Rates & Historical Performance
- What are Treasury Bills (T-Bills)?
- Key Features of Treasury Bills
- Latest Treasury Bills Interest Rates & Historical Performance
- Why Syfe’s Cash Management Solutions Stand Out
What is a Fixed Deposit?
A Fixed Deposit (also known as a time deposit) is a type of account that allows you to earn a fixed amount of interest when you deposit a sum of money over a certain amount of time.
You deposit a fixed sum of money with a bank for a specific duration at a predetermined interest rate. At the end of the Fixed Deposit term, you receive your principal plus the accrued interest.
The minimum deposit required can vary depending on the bank and the specific Fixed Deposit product. Most banks offer various tenure options, ranging from a few months to several years.
Key Features of Fixed Deposits
Guaranteed Returns
Fixed Deposits offer guaranteed returns, meaning you know exactly how much interest you’ll earn when you invest. As a low-risk option with fixed returns, this means that your returns are not subject to market fluctuations, providing a level of certainty.
Low Risk Investment
FDs are considered a low-risk investment, especially when compared to stocks or bonds. Your principal is generally safe, and the interest rate is fixed, providing peace of mind for risk-averse investors.
Various Tenure Options
Fixed Deposits offer flexibility with various tenure options available. You can choose a tenure that aligns with your investment goals and cash flow needs, whether it’s a short-term or long-term investment.
Higher Interest than Savings Accounts
FDs typically offer higher interest rates than regular savings accounts. For investors balancing between a liquid investment with relatively low volatility, Fixed Deposits will allow you to earn more on your savings without the risk associated with higher-return investments like stocks.
Who Should Choose Fixed Deposits?
- Returns: Fixed and guaranteed
- Liquidity: Low (penalties for early withdrawal)
- Risk Appetite Required: Low
- Investment Horizon: Short to medium-term
- Minimum Investment: Typically S$1,000 – S$20,000
Fixed Deposits offer predictable returns and are suitable for investors with a low-risk tolerance who prioritise capital preservation. However, the fixed tenure and potential penalties for early withdrawal can be a drawback for those who may need access to their funds before maturity.
Ideal Investor Archetype: Conservative investor with short to medium-term goals and low risk tolerance.
If you’re looking for a safe and predictable investment with a fixed return and don’t anticipate needing access to your funds before the maturity date, Fixed Deposits could be a suitable option. They are ideal for conservative investors with short to medium-term financial goals, such as saving for a down payment or a planned expense
Latest Bank Fixed Deposit Rates in Singapore
Fixed Deposit rates have been in flux recently, influenced by factors such as the U.S. Federal Reserve’s interest rate cuts and shifts in market sentiment. These changes create both opportunities and challenges for investors seeking to maximise returns on their cash savings.
Across the local banks, DBS is offering a decent rate at 2.45% for a 12-month Fixed Deposit on a minimum deposit amount of S$1,000. For the same tenure, Maybank can earn you 2.90% in interest, but you’d need to put your S$20,000 minimum deposit in their Deposit Bundle Promotion.
Here’s a look at the latest bank Fixed Deposit promotions in Singapore:
| Bank | Minimum Deposit (SGD) | Tenure (months) | Promotional Interest Rates |
| DBS | S$1,000 | 1 to 12 | 2.45% |
| Maybank | S$20,000 | 6 | 2.90% |
| Bank of China | S$500 S$10,000 | 3 | Mobile Banking: 2.50% Over the Counter: 2.40% |
| ICBC | S$500 S$20,000 | 3 | E-banking: 2.45% Over Counter: 2.45% |
| RHB | S$20,000 | 3 6 | Premier Customers: 2.50% Personal Customers: 2.40% |
| CIMB | S$10,000 | 3 | Preferred Banking: 2.45% Personal Banking: 2.40% |
Source: SingSaver, data for April 2025
T-Bills vs SSBs vs Fixed Deposits: Which Should You Consider?
While Fixed Deposits offer guaranteed returns, investors are increasingly looking beyond them to cover lost ground due to their perceived limitations:
- Evolving interest rate environment: With interest rates projected to fluctuate, investors might seek options that offer more flexibility to adjust to changing rates.
- Concerns about liquidity: Fixed Deposits typically lock in funds for a specific duration, which may not be suitable for investors who need quick access to their cash.
- Availability of alternative investment options: SSBs and T-bills offer potentially higher returns and variable risk profiles, while ETFs offer more flexibility in liquidation. This prompts investors to explore alternatives for better cash management and diversification.
Singapore Savings Bonds (SSBs) and T-bills can be good alternatives to Fixed Deposits in that regard. They offer greater flexibility, different risk profiles, and potentially higher returns, making them attractive choices for investors seeking to diversify their cash management strategies.
What are Singapore Savings Bonds (SSB)?
Singapore Savings Bonds (SSB) are a type of government bond issued by the Monetary Authority of Singapore (MAS). They offer a fixed interest rate for a 10-year maturity period, with interest paid out every six months. Compared to traditional Fixed Deposits, SSBs are often considered more attractive due to their flexibility and potentially higher returns over the long term. Plus, because SSBs are fully backed by the Singapore government, they hold much lower volatility, making SSBs a safe and secure investment option.
One unique feature of SSBs is their step-up interest structure, where the effective interest rate increases the longer you hold the bond.
As of April 2025, the average annual interest rate for SSBs ranges from 2.49% for the first year to 2.99% in the 10th year.
| Year from issue date | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Interest | 2.49% | 2.49% | 2.49% | 2.61% | 2.70% | 2.71% | 2.79% | 2.94% | 3.11% | 2.99% |
| Average return per year | 2.49% | 2.49% | 2.49% | 2.52% | 2.55% | 2.58% | 2.61% | 2.63% | 2.67% | 2.69% |
**At the end of each year, on a compounded basis. Source: May 2025 SSB issue.
Unlike Fixed Deposits where a penalty is charged for early withdrawal, you can withdraw your money anytime without penalties.
Key Features of Singapore Savings Bonds
Singapore Savings Bonds (SSBs) offer a compelling combination of security, flexibility, and attractive returns for investors seeking a reliable investment option.
- Government-Backed Security: SSBs are fully backed by the Singapore government, guaranteeing your principal and interest payments. With no risk of defaulting, SSBs are considered one of the safest investment options available.
- Regular Interest Payouts: You receive interest payments every six months, providing a steady income stream. This can be particularly beneficial for those seeking a consistent cash flow, such as retirees or individuals with regular income needs.
- Step-Up Interest: The interest rate on SSBs increases gradually over the 10-year maturity period. You’re effectively incentivised to hold your bonds longer to gain higher overall returns, making SSBs a suitable option for long-term investors.
- 10-Year Maturity Period: SSBs have a maturity period of 10 years, providing a longer-term investment option compared to shorter-term Fixed Deposits or T-bills.
- Early Redemption Without Penalties: You have the flexibility to redeem your SSBs before maturity without incurring any penalties. This means you can dip into your funds as needed, providing liquidity and peace of mind.
- Low Minimum Investment: You can start investing in SSBs with as little as S$500, making them accessible to a wide range of investors.
Who Should Choose Singapore Savings Bonds (SSBs)?
- Returns: Step-up interest (increases over time)
- Liquidity: High (no penalties for early redemption)
- Risk Appetite Required: Low
- Investment Horizon: Long term
- Minimum Investment: S$500
SSBs offer a balance of safety, flexibility, and potentially higher returns over the long term. They are backed by the Singapore government, eliminating default risk, and offering the flexibility to redeem early without penalties. However, the 10-year maturity period may not be suitable for investors with shorter-term goals.
Ideal Investor Archetype: Long-term investor with low risk tolerance seeking a safe and flexible investment.
If you’re a long-term investor with a low-risk tolerance seeking a safe and flexible investment option, SSBs could be a good fit. They are ideal for retirement planning, building a future fund, or setting aside funds for long-term goals.
Latest Singapore Savings Bonds Interest Rates & Historical Performance
The rates for Singapore Savings Bonds vary each month. Here are the 10-year average returns for the past six issues:
| SSB Issue | Average Return Over 10 Years (%) | Average Interest Rate (%) |
| December 2024 | 2.81 | 2.66 to 3.01 |
| January 2025 | 2.86 | 2.66 to 3.01 |
| February 2025 | 2.82 | 2.76 to 2.91 |
| March 2025 | 2.97 | 2.83 to 3.15 |
| April 2025 | 2.85 | 2.73 to 3.03 |
| May 2025 | 2.69 | 2.49 to 2.99 |
Source: Monetary Authority of Singapore
It’s important to note that SSB interest rates can fluctuate based on several factors. These include prevailing government bond yields, inflation expectations, and the overall interest rate environment. Understanding these factors can help investors make informed decisions about investing in SSBs.
What are Treasury Bills (T-Bills)?
Treasury bills (T-bills) are short-term debt securities issued by the Singapore government. They mature in 6 months or 1 year and are considered a safe and liquid investment option. Like SSBs, T-bills are fully backed by the Singapore government, but they have some key differences in how they work.
Key Features of Treasury Bills
T-bills offer a distinct set of features that cater to investors seeking short-term, low-risk investments:
- Government-Backed Security: T-bills are fully backed by the Singapore government, ensuring the safety of your investment. With the government’s guarantee, there is no risk of default, providing investors with peace of mind.
- Short-Term Duration: T-bills are available in 6-month and 1-year (12-month) tenures, making them suitable for short-term investment goals or parking funds temporarily. This shorter duration can be ideal for investors who anticipate needing access to their funds sooner.
- Discounted Purchase Price: Unlike SSBs, T-bills are issued at a discounted price below their face value. Investors purchase T-bills at a discount and receive the full face value at maturity, with the difference representing the interest earned.
- Fixed Yield: The yield on T-bills is determined through an auction process. This means that the return you receive will depend on the auction results, which can vary from one issuance to another.
Who Should Choose Treasury Bills (T-Bills)?
- Returns: Auction-determined (can vary)
- Liquidity: Moderate (market-dependent)
- Risk Appetite Required: Low to moderate
- Investment Horizon: Short term
- Minimum Investment: Typically S$1,000
T-bills offer a short-term investment option with relatively low risk. They are also backed by the Singapore government, minimizing default risk. However, the returns are not guaranteed and depend on the auction results. Additionally, the liquidity can be market-dependent, meaning you might need to sell at a loss if you need to access your funds before maturity.
Ideal Investor Archetype: Short-term investor with low to moderate risk tolerance seeking potentially higher returns than Fixed Deposits.
If you’re looking for a short-term investment with low risk and the potential for slightly higher returns than Fixed Deposits, T-bills could be a suitable choice. They are ideal for parking funds temporarily or for investors with a slightly higher risk tolerance who are comfortable with some variability in returns.
Latest Treasury Bills Interest Rates & Historical Performance
The interest rates, or yields, on T-bills are determined through competitive auctions held by the Monetary Authority of Singapore (MAS). Here are the results of the most recent T-bill auction:
| Issue Code | BS25107W |
| Tenor | 6 months |
| Cut-off Yield (%) | 2.5% p.a. |
| Median Yield | 2.4% p.a. |
| Average Yield | 2.1% p.a. |
Source: BS25107W 6-Month T-Bill, Monetary Authority of Singapore
For the past six T-bills auctioned since December 2024, T-bill auction yields have been fluctuating. Despite that, the cut-off yield has fallen from 3.02% to 2.90%.
This variability in yields reflects the dynamic nature of the market and the various factors that influence investor demand.
| Issue Code | Auction Date | Maturity Date | Bid-to-Cover Ratio | Tenor (mths) | Cut-Off Yield (%) | Median Yield (%) | Average Yield (%) |
| BS25012Z | 28 Jan 2025 | 5 Aug 20225 | 2.13 | 6 | 3.04 | 2.97 | 2.69 |
| BS25103S | 13 Feb 2025 | 19 Aug 2025 | 3.19 | 6 | 2.90 | 2.78 | 2.52 |
| BS25104H | 27 Feb 2025 | 02 Sep 2025 | 2.69 | 6 | 2.75 | 2.69 | 2.36 |
| BS25105T | 13 Mar 2025 | 16 Sep 2025 | 2.64 | 6 | 2.56 | 2.5 | 2.41 |
| BS25106X | 26 Mar 2025 | 30 Sep 2025 | 2.14 | 6 | 2.73 | 2.6 | 2.54 |
| BS25107W | 10 Apr 2025 | 14 Oct 2025 | 2.32 | 6 | 2.56 | 2.4 | 2.1 |
Source: Monetary Authority of Singapore
Several factors can influence T-bill yields. One key factor is the monetary policy of the U.S. Federal Reserve. For instance, the recent 25 basis point rate cut by the Fed at the end of 2024 could have contributed to the downward pressure on T-bill yields.
Another factor affecting T-bill yields is inflation expectations. If investors anticipate higher inflation, they may demand higher yields to compensate for the erosion of purchasing power. Conversely, if inflation expectations are low, T-bill yields may also be lower. With Singapore’s core inflation easing to around 2% by the end of 2024, investors may have lower inflation expectations, which could lead to lower demand for T-bills and, subsequently, lower yields.
Local demand for safe-haven investments can also impact T-bill yields. Amidst concerns about a potential economic slowdown in Singapore in 2025, investors might seek the safety of T-bills, increasing demand and potentially lowering yields.
Understanding these factors can help investors interpret T-bill auction results and make informed investment decisions based on their risk tolerance and investment goals.
Why Syfe’s Cash Management Solutions Stand Out
Headlines often tout “the best cash management solutions in Singapore” without really explaining what makes a solution “the best”.
At Syfe, we believe that cash management solutions should offer stability (i.e. no major negative returns or drawdowns) alongside attractive yield. After all, you’re parking your cash for short-term needs like your emergency fund or a big upcoming purchase. You wouldn’t want your portfolio value to decline just when you need your funds.
That’s why it’s important to look beyond the advertised yield to consider factors like risk and withdrawal times. A product may have a high projected yield, but it will also come with a higher drawdown (i.e. peak to trough fall in return). There may be negative months when bond markets drop. Can you stomach that volatility in your cash savings?
When you make a withdrawal, you typically receive your proceeds in 2 – 3 business days. What if you need your cash back urgently?
Syfe Cash+ Flexi offers a distinct advantage: next-day withdrawals, giving you unparalleled access to your cash, whenever you need it.
This liquidity is a significant advantage compared to Fixed Deposits, which lock in your funds for the product’s tenor, and Singapore Savings Bonds, where withdrawals are processed by the 2nd business day of the following month.
In addition to speed and flexibility, Cash+ Flexi helps you maximise returns with maximum flexibility, offering returns that are in line with or above prevailing market rates, ensuring your savings work harder while maintaining easy access.
Here’s how Syfe Cash+ stand out:
- Higher Liquidity: Shorter lock-in periods means your cash is always within reach. With Cash+, you can access your funds anytime without penalties, unlike Fixed Deposits, which typically impose penalties for early withdrawals.
- Comparable or Higher Returns: Cash+ offers better projected returns than traditional savings accounts—plus no minimum or maximum investment sums—meaning every dollar invested is put to good use.
- No Hidden Fees: Cash+ has no hidden fees or any conditions attached, providing greater transparency and flexibility compared to Fixed Deposits.
- Maximise Every Dollar: Invest however much you like. No minimum or maximum sums. No hoops to jump through. With Cash+, you can access your funds anytime without penalties, unlike Fixed Deposits, which typically impose penalties for early withdrawals.
Syfe offers two Cash+ options to suit your needs:
| CASH+ GUARANTEED | CASH+ FLEXI | FIXED DEPOSITS | Singapore Savings Bonds (SSBs) | Treasury Bills (T-Bills) | |
|---|---|---|---|---|---|
| Portfolio Objective | Secure, guaranteed returns on your savings | Flexible, low-risk returns on your savings | Guaranteed returns | Safe, long-term savings with principal guaranteed | Short-term, low-risk investment for capital preservation |
| Guaranteed Returns | 2.35% to 4.3% p.a. | 3.0% to 4.4% p.a. | Fixed interest rate | Step-up interest rate (increases over time) | Auction-determined interest rate |
| Lock-in Term | 3, 6, 12 months | None | Varies by bank and tenure | 10 years | 6 to 12 months |
| Withdrawal | End of term | Anytime | At maturity (penalty for early withdrawal) | No penalty for early redemption | Market-dependent liquidity (potential for capital gains or losses if sold before maturity) |
| Minimum Deposit | None | None | S$1,000 to S$20,000 | As low as S$500 | S$1,000 |
| Management Fee | None | 0.5% | None | None | None |
| Interest Payout | At maturity | Accrued daily, aid out monthly | At maturity | Semi-annually | Lump sum at maturity |
Who Should Choose Syfe Cash+?
- Returns: Competitive with market rates
- Liquidity: High (next-day withdrawals with Cash+ Flexi)
- Risk Appetite Required: Low
- Investment Horizon: Short to medium-term
- Minimum Investment: None (S$1 for Cash+ Flexi)
Syfe Cash+ offers a compelling alternative to traditional cash management options. It provides competitive returns, high liquidity, and no lock-in periods. Cash+ Flexi is particularly attractive for its next-day withdrawals, while Cash+ Guaranteed offers higher returns with a short lock-in period.
Ideal Investor Archetype: Investor seeking a flexible and accessible cash management solution with competitive returns and quick withdrawals.
If you’re looking for a flexible and accessible cash management solution with competitive returns and the convenience of quick withdrawals, Syfe Cash+ could be the ideal choice. It’s suitable for a wide range of investors, from those seeking a high-yield emergency fund to those looking to park funds temporarily while awaiting other investment opportunities.
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