Investing Updates : Is the 1-year T-bill better than the 6-month T-bill and fixed deposits?

Source : 

https://growbeansprout.com/1-year-t-bill-vs-6-month-t-bill-jul-2025

Apple Intelligence : 

• Yield Comparison: The 1-year T-bill yield (1.76%) is similar to the 6-month T-bill yield.

• Re-investment Risk: 1-year T-bill investors may face lower re-investment risks compared to 6-month T-bill investors.

• Fixed Deposit Rates: Fixed deposit rates in Singapore have declined in recent months.

• Singapore Bond Yield Trend: Singapore 10-year government bond yield and 1-year T-bill yield have declined in recent months.

• Reasons for Decline: Market expectations of US interest rate cuts and strong demand for Singapore government bonds due to economic uncertainty.

• Investment Consideration: Investing in two consecutive 6-month T-bills could be an alternative to a 1-year T-bill, but potential reinvestment risk exists if yields fall further.

• Current Yield Comparison: The 1-year Singapore T-bill yield (1.76%) is close to the 6-month T-bill auction yield (1.79%) and below the breakeven yield for CPF OA applications.

• Interest Rate Expectation: Markets anticipate the first U.S. interest rate cut in September 2025, potentially leading to lower yields on shorter-term T-bills.

• Investment Decision Considerations: Consider reinvestment risk, potential for lower yields, and economic uncertainty (e.g., tariffs and inflation) when deciding between a 1-year or 6-month T-bill.

• Fixed Deposit Rate: 2.45% for deposits below S$20,000 and 1.65% p.a. for larger deposits.

• 1-Year T-Bill Yield: 1.76%, slightly lower than the 6-month T-bill yield but offers certainty compared to reinvesting.

• Singapore Savings Bonds (SSB): Offers a 1-year return of 1.82%, a 10-year average annual return of 2.29%, and flexibility to redeem before maturity.

• T-bill Auction Date: The 1-year Singapore T-bill auction will be held on Thursday 24 July 2025.

• Application Deadline: Cash applications close at 9pm on 23 July 2025, while CPF-OA applications close 1-2 business days before the auction date.

Opinion :

A combination of T-Bills, SSBs and Cash Management is still my favourite combination for safer cash investments. 

There are not many alternatives to cash investments without taking greater risks.

I think we will not return to > 3% anytime soon. So, the rates should fall or remain side-ways for quite some time.