For investors right now, finding a decent yield on safe assets isn’t that easy. That’s mainly because interest rates worldwide are starting to fall, taking the lead from the US Federal Reserve (Fed).
If we think back to just over two years ago, investors could have received an unbelievably high 4.4% per annum (p.a.) on a 6-month Singapore Treasury Bill (T-bill) – in the December 2022 issue.
Today, the latest 6-month Singapore T-bill issue is giving individuals a miserly 2.05% p.a. and the pain may not even be over as many analysts expect rates to come down further given the Fed’s likely to cut interest rates twice more in 2025.
So, for investors, here are 5 “safe” investments that can potentially pay you more than Singapore T-bills.
#1 CPF Special Account (SA)
Nothing is more reliable for earning a guaranteed return than your CPF Special Account (CPF SA). That’s because the guaranteed 4% p.a. return is virtually impossible to find in any other risk-free asset in Singapore.
Of course, the big downside of contributing to your CPF SA for that 4% p.a. is that the funds will remain in there until you retire. And, even after that, you receive monthly payouts via CPF LIFE, instead of any lump sum withdrawals.
Nevertheless, with the force of nature that is compounding, it’s not exactly the worst place to put spare cash, especially if you’re planning for a comfortable retirement.
Remember that the CPF SA turns into the CPF Retirement Account (RA) when you hit 55, with any CPF SA savings transferred to the CPF RA up to the Full Retirement Sum (FRS) – which is $213,000 in 2025. Any excess beyond that goes into your CPF Ordinary Account (CPF OA).
Read Also: 6 Investments In Singapore That Provide Guaranteed Principal And Returns
#2 ABF Singapore Bond Index Fund
For investors who want a solid yield, bond funds always provide a legitimate option. In Singapore, the de facto bond fund is the ABF Singapore Bond Index Fund (SGX: A35).
With over 80% of its holdings in Government of Singapore-issued debt, it’s an extremely safe option. Given its weighted average yield to maturity is 2.57% (as of 30 April 2025), it has an appealing yield. Of course, investors should factor in the 0.25% p.a. expense ratio.
Even with that, it works out to a net yield of around 2.3%. The Fund pays out distributions twice a year to shareholders.
#3 Singapore Government Securities (SGS) Bonds
Unlike the short-tenor T-bills, SGS bonds are longer dated and, therefore, offer a higher yield for investors given they are taking on more duration risk since tenors range from 2 years to 50 years.
However, Singapore’s Government retains a AAA credit rating (the highest in the world) and, therefore, they are still deemed extremely safe.
One of the latest SGS bond issuances by the MAS was for a 5-year Market Development bond that was issued on 1 April 2025 and it offered investors a coupon rate of 2.5% p.a. with coupon payment dates of 1 April and 1 October each year.
Read Also: Complete Guide To Understanding The Different Types Of Singapore Government Securities
#4 Singapore Savings Bonds (SSBs)
Everyone knows how great Singapore Savings Bonds are (SSBs) given their flexibility and ease for individuals.
While interest rates on the first year have dropped substantially (along with T-bill rates), they are still in fact higher than T-bills.
For example, the June tranche of SSBs offers a first-year interest rate of 2.2%. While this was down from the 2.49% first-year interest rate in May’s issuance, it’s still attractive versus T-bills. Do remember that SSBs have a holdings cap of $200,000, meaning no individual can have total SSB holdings above this amount.
Read Also: Complete Guide To Buying Singapore Savings Bonds (SSB) [2024 Edition]
#5 High-Yield Savings Account (HYSA)
Finally, we have high-yield savings accounts (HYSAs) with the big Singapore banks. While all three offer solid yields for cash savings, there are ones that have lower hurdles to clear.
The OCBC 360 account gives investors an effective interest rate (EIR) of 3.3% on the first $100,000 of cash as long as individuals credit their salary, increase their savings and spend a set amount on a credit card.
Meanwhile, the UOB One account also gives an EIR of 3.3% but this is on the first $150,000 of cash and there are arguably less restrictions to getting this rate as account holders just have to credit their salary and spend $500 a month on a selection of UOB credit/debit cards.
Read Also: [2025 Edition] Best Savings Accounts for Working Adults in Singapore
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