Investing Updates: Singapore Savings Bonds (SSB) 10-year return at 2.14%. Better than fixed deposits and T-bills?

Source:

https://growbeansprout.com/ssb-vs-tbill-vs-fixed-deposit-apr-2026

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The latest Singapore Savings Bonds (SSB) issuance in April 2026 offers a 10-year average return of 2.14% per year, up from 1.99% in March. This makes it relatively attractive compared to other low-risk options like fixed deposits and Treasury bills (T-bills). However, projections suggest the next SSB issuance may see a slight dip to around 2.08%–2.09%, reflecting recent declines in Singapore Government Securities (SGS) yields.

For shorter holding periods, the SSB’s 1-year return is 1.40%, which is comparable to the best 12-month fixed deposit rates. It is higher than 3-month fixed deposits (around 1.30%) but slightly lower than top 6-month fixed deposits (about 1.50%). Compared to T-bills, the SSB’s 1-year return matches the latest 6-month T-bill yield of 1.40%, though it trails the 1-year T-bill yield of about 1.46%–1.47%.

A key advantage of SSBs is flexibility. Unlike fixed deposits and T-bills, SSBs allow investors to redeem their funds early without penalty, while still locking in a step-up interest structure over time. This makes them suitable for investors seeking both liquidity and stable returns.

SSB interest rates are closely tied to SGS yields, particularly the 10-year government bond yield. Recent volatility—driven by inflation concerns, geopolitical tensions, and easing oil prices—has caused yields to fluctuate, which explains the expected decline in future SSB rates.

Demand for SSBs has softened, with April applications falling to S$169 million, below the S$300 million offered.

Overall, the current SSB appears competitive, especially for long-term, low-risk investors. Given the lower future yields, applying now may be more advantageous than waiting.