Low-Risk SRS Investments in Singapore: T-Bills, SSBs and Fixed Deposits

The 6-month Singapore Government Treasury bill auctioned on 8 October 2026 closed at a cut-off yield of 1.90% a year, with S$17.8 billion of applications chasing S$8.3 billion of bills. For anyone looking for a low risk SRS investment in Singapore, that figure sits next to a far smaller one: uninvested SRS cash at DBS earns 0.05% a year.

The Supplementary Retirement Scheme (SRS) is a voluntary retirement account that gives tax relief on contributions and lets investment returns accumulate tax-free before withdrawal. Plenty of that money is never put to work. At the end of 2025, 21% of the SRS investment portfolio was still held as cash, while Singapore Government Securities, bonds, foreign currency fixed deposits and fund management together made up 23%.

Beating the cash rate takes nothing riskier than government paper or a bank deposit. Treasury bills, Singapore Savings Bonds and fixed deposits can all be bought with SRS money through the bank that runs your account, and each has its own minimum, payout pattern and exit rules.

The main options are 6-month and 1-year T-bills, the monthly Singapore Savings Bond issue, Singapore-dollar and foreign currency fixed deposits, and SGX-listed bond funds for investors who accept some price movement. This guide explains what each option pays today, how to buy T-bills, SSBs and fixed deposits with SRS funds, what S$10,000 would earn in each, and the risks that remain even when the principal is safe.

Low-risk SRS options at a glance

All three SRS operator banks let you buy government securities and deposits with SRS funds. What separates the options is how you earn, what you need to start and how easily you can get the money back.

Source: MAS SGS auctions for individuals, MAS SSB GX26110X issue details, DBS SRS, MoneySense deposit insurance, POEMS SRS (as of 18 October 2026)

Four lower-risk places for SRS money with current yields and minimums

Current yields for SRS T-bills, SSBs and cash

Yields on government securities reset with every auction and every monthly SSB issue, so any figure is a snapshot. These are the latest as of 18 October 2026.

The 8 October 2026 auction of the 6-month bill BS26120W cleared at 1.90%, with a median yield of 1.86% and a bid-to-cover ratio of 2.14 times. A bid-to-cover ratio above 2 means more than twice as much money applied as was available, which pushes the cut-off yield down.

The November 2026 Singapore Savings Bond, GX26110X, pays 1.67% in its first year and averages 2.45% a year if held for the full 10 years. The year-one rate is the one that matters for money you might redeem soon; the 10-year average only applies if you keep the bond to maturity.

Source: Beansprout T-bill allotment results, MAS SSB GX26110X issue details, DBS SRS (as of 18 October 2026)

Fixed deposit rates are set by each bank, change without notice and often depend on the total amount you hold. Check the current SRS fixed deposit rate in your operator's app on the day you place it.

How T-bills work when you pay with SRS

A Treasury bill (T-bill) is a short-term Singapore Government security. Individuals can buy 6-month and 1-year bills, and the minimum bid is S$1,000, in multiples of S$1,000. T-bills pay no coupon. You buy them below face value and receive the full face value at maturity, and the difference is your return.

Competitive and non-competitive bids

Every T-bill application is one of two bid types. A non-competitive bid names only the amount, and these bids are allotted first, up to 40% of the issue, and pro-rated if oversubscribed. A competitive bid names an amount and the lowest yield you will accept; bids are filled from the lowest yield upward until the issue is used up.

Non-competitive bidders receive the cut-off yield, whatever it turns out to be. Competitive bidders who ask for a yield above the cut-off receive nothing. You can still be partly allotted with either bid type, which matters more than it sounds: any unallotted amount returns to SRS cash and earns 0.05% until you place it again.

Discount pricing, in numbers

Because T-bills are sold at a discount, the price you pay is the face value divided by one plus the yield for the period. For a S$10,000 bill at 1.90% with a 182-day tenor, the price is S$10,000 ÷ (1 + 1.90% × 182 ÷ 365), or about S$9,906.15, and the return at maturity is about S$93.85.

A quicker approximation is S$10,000 × 1.90% × 0.5, which gives about S$95. That shortcut slightly overstates the return because the yield is earned on the discounted price. Either way, the result is more than 35 times the S$2.50 that the same S$10,000 earns as idle SRS cash over six months.

How to buy a T-bill with SRS funds

Check your SRS cash. Top up or free up enough to cover the bid before the bank's cut-off.

Find the auction date. 6-month bills are auctioned regularly on the MAS auction and issuance calendar. Internet banking applications can close 1 to 2 business days before the auction; DBS online applications close at 9pm one business day before.

Apply through your SRS operator. DBS/POSB and OCBC accept SRS applications through internet banking or the mobile app, and UOB through its internet banking portal.

Choose the bid type. Enter the amount and, for a competitive bid, the yield.

Check the result. Unsuccessful or invalid bids are refunded within 1 to 2 business days after the auction. Maturity proceeds go back to the SRS account you paid from.

DBS currently waives application fees for SRS T-bill applications. Check your own bank's fee schedule before applying if you bank with OCBC or UOB.

How a T-bill or SSB application with SRS money flows through the operator bank

How Singapore Savings Bonds work with SRS

A Singapore Savings Bond (SSB) is a 10-year government bond designed for individuals. The interest rate steps up each year, coupons are paid every six months, and you can redeem in any month and get your principal back with accrued interest, with no penalty. The minimum application is S$500, in multiples of S$500.

The flexibility comes with a ceiling. Each person can hold up to S$200,000 of SSBs in total, counting both cash and SRS holdings. If popular issues are oversubscribed, allotment is scaled back, so you may receive less than you applied for.

SSB GX26110X interest schedule on S$10,000

Held to maturity, S$10,000 in the November 2026 bond pays a rising coupon every year. In year one, the S$167 arrives as two coupons of S$83.50.

Example only, based on MAS SSB GX26110X issue details (as of 18 October 2026). Assumes simple interest on S$10,000 held to maturity, coupons paid out and the S$2 bank fee excluded.

The S$2,479 total differs from 2.45% × 10 years because 2.45% is an annualised average return, while the table simply adds up each year's coupons.

How to buy an SSB with SRS funds

Confirm your remaining room. Add your existing SSB holdings from cash and SRS; the total cannot exceed S$200,000.

Log in to your SRS operator's internet banking or app. SRS applications for SSBs go through the operator bank's online channels.

Select the current SSB issue. For November 2026, that is GX26110X, with applications closing at 9pm on Tuesday 27 October 2026.

Enter the amount in multiples of S$500 and confirm the debit from your SRS account.

Pay the fee. DBS and OCBC each charge a S$2 transaction fee per SSB application or redemption.

On S$10,000, the S$2 fee takes about 1.2% of the first year's interest. On a S$500 application, the same S$2 is a much larger slice, so small SSB purchases with SRS money are less efficient.

Can you use SRS for fixed deposits?

Yes. DBS lists Singapore-dollar fixed deposits and foreign currency fixed deposits among its SRS investment options, alongside SGS, SSBs, bonds, shares, unit trusts and single premium insurance. MOF also includes fixed deposits in the list of SRS-eligible investments.

A fixed deposit (FD) locks money with the bank for a set tenor at a fixed rate. It is the simplest of the options here, since you know the rate the moment you place it. The trade-off is that you commit to the tenor up front, and banks usually reduce or forfeit interest if you withdraw early.

Deposit insurance on SRS fixed deposits

Singapore's Deposit Insurance Scheme covers Singapore-dollar money placed under SRS with a scheme member, up to S$100,000 per depositor per bank. That cover applies to SGD SRS cash and SGD fixed deposits. Foreign currency fixed deposits do not fall under the SGD cover and also add exchange-rate risk, since the deposit is converted back to Singapore dollars at whatever rate applies when it matures.

Government securities sit in a separate category. A T-bill or SSB is backed by the Singapore Government itself, so the S$100,000 limit applies only to deposits.

How to place an SRS fixed deposit

Check the rate. Look up the bank's current SRS or board FD rate and the tenors on offer; DBS accepts new SGD placements for tenors of 12 months and below.

Check the minimum and the maturity instruction. Decide whether the deposit should renew automatically or return to SRS cash at maturity.

Place it from your SRS account. Use the operator's online banking, or a branch if the product is only offered there.

Note the maturity date. Matured funds that return to SRS cash fall back to the cash rate until you reinvest them.

What S$10,000 earns in a year in each option

Even within the low-risk shelf, the choice makes a large difference to a year's interest. These figures use the yields in force on 18 October 2026 and simple interest.

Example only, based on DBS SRS, MAS SSB GX26110X issue details and Beansprout T-bill allotment results (as of 18 October 2026). Assumes simple interest before the S$2 SSB fee; the T-bill figure uses S$10,000 × 1.90%, and discount pricing makes the actual return slightly lower.

What S$10,000 of SRS money earns in a year in cash, an SSB and T-bills

The T-bill comes out ahead on this snapshot, but the gap with the SSB is narrower than it looks. The SSB rate is locked for the first year once you are allotted, while the second T-bill could clear higher or lower. The SSB also lets you exit in any month, while a T-bill ties the money up until maturity.

For context, a full S$15,300 contribution left as cash at DBS would earn about S$7.65 in a year.

Choosing between T-bills, SSBs and fixed deposits

Which option fits depends mostly on when you might need the money and how much attention you want to give it. Whichever you pick, interest and maturity proceeds stay inside the SRS account, and taking them out before your prescribed retirement age makes the withdrawal fully taxable with a 5% penalty.

T-bills suit investors who are happy to hold for six months or a year and to reapply at each maturity. They often offer the highest of the three yields on a given day, but you have to bid, accept possible partial allotment and act again when the bill matures.

SSBs suit money you might want to move into other investments at short notice. You can redeem in any month without losing principal, and holding longer earns higher step-up rates. The S$200,000 limit and the S$2 fee are the main constraints.

Fixed deposits suit investors who want a known rate with no auction and no allotment risk. Rates depend on what your bank is offering, so compare them with the latest T-bill and SSB rates before you commit.

SGX-listed bond ETFs sit one step up the risk scale. They pay distributions and can be sold on any trading day, but their price moves with interest rates, so you can get back less than you invested. Some brokers limit SRS purchases to SGX-listed securities settled in Singapore dollars.

Risks that remain with low-risk SRS investments

Credit risk on Singapore Government securities is minimal, but five other risks still shape what you end up with.

Reinvestment risk

Every T-bill and fixed deposit eventually matures, and the next one may pay less. Today's 1.90% T-bill tells you little about the yield six months from now. SSBs reduce this risk because the step-up schedule is fixed for up to 10 years at the rate on the day you buy.

Inflation risk

A return of around 2% can fall behind inflation in some years. Over the decades that SRS money usually stays invested, low-risk options preserve nominal value well but may grow its purchasing power only slowly.

Opportunity cost

Money held in short-term government paper misses out on the long-run growth of equities. For investors with 15 or 20 years before their withdrawal age, keeping the whole SRS balance in T-bills and SSBs is a deliberate trade of growth for stability.

SSB allotment limits

The S$200,000 cap covers SSBs bought with cash and SRS together, and popular issues can be scaled back. If you rely on SSBs for a large SRS balance, allotment can leave part of the money in cash.

T-bill auction allotment

Competitive bids above the cut-off receive nothing, and even non-competitive bids can be pro-rated. Any unallotted amount returns to SRS cash at 0.05% until the next auction. With 2.14 times as much money applied as was allotted on 8 October 2026, partial allotment is a real possibility.

Earn more on lower-risk SRS money with StashAway

If you want your SRS cash to work without bidding at auctions or rolling over deposits, the Simple Cash suite accepts SRS funds and offers a projected rate range of 3% p.a. to 6.2% p.a. Projected rates are not guaranteed and can change.

For the part of your SRS balance with a longer horizon, General Investing powered by StashAway builds managed, globally diversified ETF portfolios, with 1-year returns of 6.4% to 26.6% across risk levels. ETF Explorer lets you choose from 90+ asset classes for US$1 per order, excluding GST, and was the first platform to let investors use SRS to buy US- and UCITS-listed ETFs, not only SGX-listed ones. SRS contributions take 3 to 4 business days to reach StashAway.

Frequently asked questions

These are the questions investors most often ask before moving SRS cash into lower-risk options.

Can I buy T-bills and SSBs with the same SRS account?

Yes. Both are bought through your SRS operator bank's internet banking, using the cash in your one SRS account. You can hold T-bills, SSBs and fixed deposits in the same SRS account at the same time.

Is an SRS T-bill risk-free?

It carries very little credit risk because it is issued by the Singapore Government, and you receive the full face value at maturity. The risks that remain are practical ones: you may be partly allotted, and the next bill may pay a lower yield when you reinvest.

Do SSBs bought with SRS count towards the S$200,000 limit?

They do. The S$200,000 limit applies to your total SSB holdings across cash and SRS combined. If you already hold S$150,000 in SSBs bought with cash, you can add at most S$50,000 through SRS.

Do T-bill maturity proceeds leave my SRS account?

No. Proceeds return to the SRS account you paid from and stay subject to SRS rules. Withdrawing them before your prescribed retirement age makes the withdrawal fully taxable and adds a 5% penalty.

Are SRS fixed deposits covered by deposit insurance?

Singapore-dollar SRS deposits are covered up to S$100,000 per depositor per bank. Foreign currency fixed deposits sit outside that SGD cover and also carry exchange-rate risk.

Which is better for SRS: T-bills or SSBs?

On 18 October 2026, the latest 6-month T-bill yield of 1.90% was higher than the 1.67% first-year SSB rate. SSBs offer penalty-free monthly redemption and a fixed step-up schedule, so the choice comes down to whether you want the higher short-term yield or the flexibility.