Looking for a safe place to keep your savings that isn’t a bank deposit?
Singapore Government Securities (SGS) are backed by the Singapore Government, which holds the highest credit rating available. But SGS covers a few different products, and each has its own rules on how long your money is locked in and how you get it out.
Below, we go through how each one works and which might fit what you’re saving for.
Key Takeaways
- Singapore Government Securities are bonds and bills issued by the Singapore Government, with the Monetary Authority of Singapore (MAS) managing them on its behalf.
- Individuals can buy three types of SGS: Singapore Savings Bonds (SSBs), Treasury bills (T-bills), and SGS bonds.
- SSBs can be redeemed in any month with no penalty, while T-bills and SGS bonds must be held to maturity or sold on the secondary market.
- For individuals, interest earned on SGS is tax-exempt in Singapore.
SIDE NOTE
A policy bought years ago. Savings in three places. A will that's still on the to-do list.
None of it is wrong. It's just not a plan yet.
There's an order that turns the pieces into one system, and it doesn't require becoming a finance expert. Here's the order, in 7 steps, so you know what to sort out first.
What Are Singapore Government Securities (SGS)?
Singapore Government Securities are debt securities issued by the Singapore Government. When you buy one, you’re lending money to the Government, which pays you interest and returns your principal at maturity.
Since the Government fully backs them, MAS describes SGS as among the safest investments you can hold. Moody’s, S&P, and Fitch have all given Singapore their highest credit rating.
So why does a government that often runs budget surpluses borrow at all? Mostly not to spend the money, according to the MAS overview of the bond market.
SGS bonds and T-bills are issued mainly to build up Singapore’s bond market. Infrastructure bonds are the main exception, since they fund major long-term infrastructure.
How Do Singapore Savings Bonds (SSBs) Work?
Singapore Savings Bonds are government bonds for individuals that let you take your money out in any month without losing any of your principal.
Each SSB has a term of up to 10 years. Its interest rate steps up over time, so the longer you hold it, the higher your return. The rates for each issue are set at the start, so you know your returns before you invest.
You can invest from $500, in multiples of $500, up to $200,000 per person in total. Interest is paid every six months, and if you redeem early, you get your principal plus the interest earned so far.
You can pay for SSBs with cash or Supplementary Retirement Scheme (SRS) funds, but not CPF savings. A new SSB is issued every month, and if an issue is oversubscribed, you may be allotted less than you applied for.
For more on rates and applications, see our full guide to Singapore Savings Bonds.
How Do Treasury Bills (T-bills) Work?
Treasury bills are short-term SGS, currently offered in six-month and one-year terms. You buy them at a discount and receive their full face value at maturity.
For example, if you effectively pay $9,900 for $10,000 worth of T-bills, you’ll receive $10,000 when they mature. The $100 difference is your return. (These figures are for illustration only.)
T-bills are sold through regular auctions listed on the MAS issuance calendar. When you apply, you choose one of two types of bid.
- Non-competitive bid. You only state how much you want to invest, and accept whatever yield the auction sets. These bids are filled first, up to a cap, so if demand is high, you may receive less than you applied for.
- Competitive bid. You also state the lowest yield you’re willing to accept. You only get the T-bills if the auction’s final yield is at or above the yield you bid, and you may not get the full amount.
Whichever type of bid you use, if it’s successful you get the same yield as everyone else, called the cut-off yield.
The minimum is $1,000, in multiples of $1,000, and you can pay with cash, SRS funds, or CPF Investment Scheme funds. T-bills can’t be redeemed early, but they can be sold on the secondary market through DBS, OCBC, or UOB, where the price may be higher or lower than what you paid.
How Do SGS Bonds Work?
SGS bonds are longer-term government bonds that pay a fixed interest rate every six months and return their face value at maturity. Their terms currently range from 2 to 50 years.
Like T-bills, they’re mainly sold through auctions, with a minimum of $1,000, in multiples of $1,000. You can generally pay with cash, SRS funds, or CPF Investment Scheme funds. MAS occasionally sells new bonds in other ways too, and payment options can differ for these, so check the details for each issue.
SGS bonds can’t be redeemed early. If you need the money before maturity, you can sell them on the secondary market, either through DBS, OCBC, or UOB, or on SGX through a securities broker.
The price you’ll get depends on interest rates at the time. Say rates rise after you buy a 10-year SGS bond. Newer bonds now pay more, so buyers are unlikely to pay full price for yours, and you may get back less than you paid. If rates fall instead, your bond may sell for more.
If you hold the bond to maturity, you receive its full face value, regardless of what rates did in between.
How to Buy Singapore Government Securities
How you buy SGS depends on the product and on whether you’re paying with cash, SRS, or CPF savings.
What you’ll need
- Cash. A bank account with DBS/POSB, OCBC, or UOB, plus your own CDP Securities account.
- SRS funds. An SRS account with one of the same three banks.
- CPF savings (T-bills and SGS bonds only). You’ll apply through DBS/POSB, OCBC, or UOB under the CPF Investment Scheme, subject to CPF’s investment rules.
Who can buy
You’ll need to be at least 18. The central bank states that SGS bonds are open to individuals, including foreigners.
If you’re not a Singaporean or PR, check MAS’s eligibility details for the specific product, and confirm with the bank that you can open the accounts you’ll need.
QUICK CHECK
Can you answer these three questions?
1) If something happened to you tomorrow, how much would your family receive?
2) At 65, what monthly income will your savings and investments pay you?
3) If you never get round to a will, who inherits what, and in what proportion?
Most people manage one at best. Not because they're careless, but because nobody has shown them which order to tackle things in.
That order exists. Work through your finances in this sequence, from income and protection through to investments and estate planning.
How to apply
Most applications can be made online or at the banks’ ATMs. The channels available depend on your bank and on whether you’re paying with cash, SRS, or CPF savings.
For T-bills and SGS bonds, banks stop taking applications ahead of the auction date, so check your bank’s cut-off time. MAS publishes the results on its issuance calendar after each auction.
What About Special Singapore Government Securities (SSGS)?
SSGS aren’t available to individuals. They’re issued specially by the Government to the CPF Board, which invests CPF members’ savings in them.
The money raised is pooled with other government funds and invested by GIC. The returns on SSGS are guaranteed regardless of how GIC performs, which is why the CPF Board says members bear no investment risk.
SSB vs T-bills vs SGS Bonds: Key Differences
Here’s how the three compare, based on details published by MAS as of 2026.
| Feature | SSBs | T-bills | SGS bonds |
|---|---|---|---|
| Term | Up to 10 years | 6 months or 1 year | 2 to 50 years |
| Minimum | $500 | $1,000 | $1,000 |
| Maximum | $200,000 in total | No overall limit | No overall limit |
| How you earn | Interest every six months, stepping up over time | Bought at a discount | Fixed interest every six months |
| Early exit | Any month, no penalty | Sell on secondary market | Sell on secondary market |
| Pay with | Cash or SRS | Cash, SRS, or CPF | Cash, SRS, or CPF |
Pros and Cons of SGS
Pros
- Government-backed safety. The Singapore Government stands behind both your principal and the interest.
- Low minimums. You can start with $500 for SSBs, or $1,000 for T-bills and SGS bonds.
- Tax-exempt interest. For individuals, interest from SGS isn’t taxed.
- No price risk on SSBs. You always get your full principal back when you redeem an SSB, even if interest rates have risen since you bought it.
Cons
- Modest returns. SGS are designed mainly for safety rather than growth. In some periods, government bond yields have come in below inflation, which means your money can still lose buying power.
- Risk of loss if you sell early. This applies to T-bills and SGS bonds, since they can’t be redeemed early.
- No guarantee on the next round. When a T-bill matures and you reinvest in a new one, its yield could be lower than what you just earned.
- Partial allotments. Popular SSB issues and auctions may give you less than you applied for.
- CPF may already earn more. MAS itself points out that prevailing CPF interest rates may be higher than SGS yields, so compare the two before using CPF savings.
Which SGS Suits You?
As a general guide, each type fits a different time horizon.
- SSBs may suit money you could need at fairly short notice, since you can redeem in any month. The money isn’t paid out instantly, though, so you may want to keep at least part of your emergency fund somewhere you can reach immediately.
- T-bills may suit money you won’t need for six months to a year.
- SGS bonds may suit long-term savings you’re comfortable holding to maturity.
If you’re investing SRS funds, all three are among the low-risk SRS investment options. For a guaranteed retirement income instead, you could also compare SRS endowment and annuity plans.
In Closing
SGS give you Government-backed returns and tax-free interest, starting from $500.
In my view, they’re best used as the steady, lower-risk part of a portfolio, alongside investments aimed at long-term growth. If you’re new to them, SSBs are the simplest place to start, since there’s no auction to bid in and you can exit in any month.
To see how they compare with other types of bonds, read our guide to investing in bonds in Singapore.
BEFORE YOU GO
Articles can tell you what generally makes sense. They can't see your policies, your CPF, or your plans.
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