Singapore T-Bills: How to Apply With Cash, SRS or CPF

Singapore Treasury bills, or T-bills, are short-term securities issued by the Government of Singapore. They are backed by the government, pay a known return when held to maturity, and can be bought with cash, SRS funds or CPF savings. That combination has made them popular with savers looking for a safe place for spare cash. This guide explains how Singapore T-bills work, how the auction works, how to apply with cash, SRS or CPF, and how T-bills compare with other options.

How T-bills work

T-bills are sold at a discount and repaid at full face value when they mature. For example, you might pay $985 for a bill that pays back $1,000 six months later; the $15 difference is your return, which works out to roughly 3% a year. The Monetary Authority of Singapore (MAS) runs 6-month T-bill auctions every two weeks and 1-year T-bill auctions every quarter. The minimum investment is $1,000, in multiples of $1,000.

Returns on Singapore Government Securities held by individuals are not taxed, so the yield you receive is what you keep.

Competitive or non-competitive bid?

Auctions use a uniform price, so everyone who is allotted bills gets the same yield, the "cut-off yield". A non-competitive bid means you accept whatever the cut-off yield turns out to be, and you are very likely to be allotted, although non-competitive bids are capped as a share of the issue. A competitive bid states the minimum yield you will accept; if your bid is above the cut-off, you get nothing. Most individual investors use non-competitive bids for simplicity.

How to apply for T-bills

With cash. Apply through the internet banking or ATMs of DBS/POSB, OCBC or UOB. You will need a CDP account linked to your bank account so the bills can be credited and the proceeds paid out at maturity.

With SRS funds. Apply through your SRS bank. Using SRS money for T-bills can be a sensible way to earn a return on contributions you have made for tax relief; see our guide to the SRS.

With CPF savings. Apply through a bank's CPF Investment Account. Consider that money taken out of your OA forgoes its guaranteed interest, and the timing of withdrawal and return can mean losing a month or more of CPF interest. A T-bill needs to yield clearly more than the OA's 2.5% to be worthwhile after accounting for this.

Applications close a day or so before each auction, and the application amount is deducted upfront, with any unallotted amount refunded. Check MAS's auction calendar for the dates.

T-bills, SSBs or fixed deposits?

T-bills are best held to maturity; selling early through the secondary market is possible but not straightforward for most individuals. Singapore Savings Bonds are more flexible, letting you redeem any month without penalty, and have rates that step up the longer you hold. Bank fixed deposit promotions can sometimes beat both. Compare the yields at the time you invest, and use our fixed deposit calculator to compare returns.

Building a T-bill ladder

Some savers apply for a 6-month T-bill at regular intervals, so that part of their money matures every few weeks or months. This "ladder" gives regular access to cash while keeping most of it earning a government-backed return. When a bill matures, they can reinvest it or use the money as needed.

Where T-bills fit

T-bills suit money you will not need for six months to a year, such as savings for a planned purchase. For long-term growth, investing in diversified ETFs is usually more suitable; see how to start investing in Singapore.

Frequently asked questions

What is the minimum for Singapore T-bills?

$1,000, in multiples of $1,000.

How often are T-bill auctions held?

6-month T-bills every two weeks and 1-year T-bills every quarter.

Can I use CPF to buy T-bills?

Yes, through a CPF Investment Account, but you forgo OA interest while the money is invested.

Singapore T-bills: how to apply with cash, SRS or CPF