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

Staci S. Wright

Want to gain significant desire for your savings 

For the previous number of decades, earning high interest in low-danger goods has been
virtually not possible in Singapore. Help save for CPF furnishing 2.5% for Normal
Accounts and 4% for Specific Accounts, putting cash in banks for even bonds
will yield marginal returns of 1-2%.

With the recent rise in curiosity premiums, 1 would have extra possibilities nowadays to
increase their yields from personal savings. The 3 goods with the least chance in the
market place currently will be Set Deposit, Singapore Saving Bonds and T- Expenditures. 
If you are curious about which option is the ideal for you, here is a summary
of each individual product.

Fastened Deposit (FD)

Mounted Deposits are usually placed with financial institutions in Singapore. A sum of dollars is
blocked for a mounted deposit as for every decided by the lender. The desire is
offered at the commence of the preset deposit. At the finish of the time period, you
would get again the principal and the fascination acquired from the FD. Interests
are tax exempted.

Now, one of the greatest FD rates over 1 12 months is furnished by RHB at 3.4%.
You can look at the
most current FD charges for Singapore banks

Min financial investment: Usually from $5,000, while some banks favor a greater
sum (eg $20,000). It does not want to be in multiples of $1000


  • One of the least difficult means to get large interest.
  • The Deposit Insurance policies Plan safeguards up to $75,000 of your overall deposit in
    the lender.


  • If you need to have funds, you need to crack the FD. Some banking institutions may well not give
    fascination if it is not retained in just the agreed period.
  • Curiosity may perhaps differ from first placement and is frequently much decrease if you
    break your FD early. 
  • Some banking companies cost penalties for breaking FD

How to apply?

An application can be produced at the lender over the counter or on the web for selected
banking institutions. 

Hard cash is to be applied to put Fix Deposit. There are no choices for CPF cash.
SRS funds could position in FD but at a considerably reduce fee.


No charges for placement

Acceptable For

Those who would want fuss-free financial investment.

Singapore Financial savings Bonds (SSB)

These are issued by Singapore Federal government with the principal confirmed by the
authorities. SSB is ordinarily issued for 10 a long time. Traders will get coupon
payments each individual 6 months, and the discount codes are likely to raise above time. Returns
are tax exempted.

Minimum amount Amount of money to invest: $1,000 and in multiples of $1000


  • Desire will be recognised through the whole 10 decades, thus having out
    guesswork from financial investment.
  • Investors can withdraw at any presented month with no penalty. Accrued fascination
    will be returned right now with the principal.
  • Investors can decide on to reinvest their money at the new SSB if the cap is
    not achieved.
  • Suited for small quantities.
  • SRS money can be used for expense.


  • Interest costs are locked in, and you could be ‘stuck’ at a lessen rate until
    you redeem.
  • There is a cap of SGD 200K for the full financial investment
  • 1st-yr rate may possibly not be as interesting as FD
  • You need an person CDP account and can only invest with the chosen
    banks (DBS, OCBC, UOB)
  • You might not get entire allocation if the demand from customers outstrips source. That would
    signify some cash will be remaining idle.

How to apply

  • SRS is open to people aged 18 a long time and previously mentioned. You need to have an account
    with a person of the 3 area financial institutions and an unique CDP account.
  • Use by DBS/POSB, OCBC and UOB ATMs of Net Banking or OCBC
    cell application. SRS investors may well apply by their respective SRS
    Operator’s Internet banking
  • Redemption can be accomplished in any presented thirty day period before the bond matures with no
    penalty. You will be paid principal and accrued desire.
  • The application will shut on the 4th working working day in advance of the finish of the
    thirty day period at 9pm.


$2 for each transaction ( buying and promoting)

Acceptable for

People who are on the lookout for a common stream of earnings. It is also superior for
long-term traders who can park their money for a longer interval.

Singapore Treasury Expenditures (T-Bills)

T-expenses are limited-expression Singapore Authorities Securities issued at a low cost to
their face worth. Buyers will receive the whole face worth at maturity. They
are available in 6month or 1-12 months T-expenditures. T-expenses are AAA credit score rated, and
you can order with Funds, SRS and CPF. Returns are tax exempted.

Least Sum: $1000 and multiples of $1000



  • Liquidity danger – You can offer but at sector rate. The principal is not
  • You have to experience re-investment chance at a reduce charge in contrast to SRS account.

*Competitive vs non-competitive bids

Competitive: You can decide on a baseline of what produce you may want to acknowledge.
Need to the Slash off produce be bigger, you will get the T-bill at the minimize of
produce. In most conditions, you really should get a complete allocation. Do your maths properly and do not more than-commit. 


Bid for 3%

Eventual yield: 3.5%

You will get 3.5%

If the eventual produce is considerably less than 3% ( eg 2.95%), you will get nothing.

Non-Competitive: You will settle for the minimize-off produce from the auction. 

How to implement?

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

For money software
You require a bank account with DBS/POSB, OCBC,
or UOB. You will also need an unique CDP account with Immediate Credit history
Providers activated. Implement by using ATM or world-wide-web banking.

For SRS software

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

For CPFIS application

For CPFIS-OA, you will have to have a CPF investment decision account with just one of a few CPFIS
agent banking companies ( DBS/POSB, OCBC, UOB). if you are investing employing CPFIS-SA funds,
there is no need to open any CPD expenditure account. YOu will have to have to submit
an application in individual at any financial institution of the CPFIS bond sellers.


$2 for every transaction for selected banking companies. Some banks will also cost for custodian service fees on quarterly foundation.

Acceptable for

Those people with a shorter time horizon would like greater charges than FD. This is
a lot more suited for effectively-versed investors owing to the necessities.

This is not intended as financial commitment guidance but as info on what is
accessible.. Each individual has their individual possibility urge for food. For economical
planning, it is finest to seek advice from your financial planner for information.

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