Endowment Plan Singapore 2026: Which Plans Still Beat the 1.92% T-Bill Rate?

Singapore’s 6-month T-bill cut off at 1.92% per annum at the 24 September 2026 auction. That is the highest T-bill yield of 2026. Yet some endowment plans in Singapore still offer guaranteed returns above this rate — sometimes significantly so.

The trade-off is liquidity. T-bills mature in 6 months. Endowment plans lock you in for 2 to 3 years. This guide shows you exactly which plans beat the current T-bill rate, and helps you decide whether the extra yield is worth the longer commitment in Q4 2026.

The T-Bill Benchmark: 1.92% p.a. (Sep 24 Auction)

The 6-month Singapore Government T-bill cut off at 1.92% per annum at the 24 September 2026 auction. This is not a projected figure — it is the actual auction result.

T-bills have a key advantage: they are backed by the Singapore Government, carry zero credit risk, and mature in exactly 6 months. You get your capital back in full, guaranteed.

The 1.92% rate is also the highest T-bill yield so far in 2026, making it a genuine benchmark. Any endowment plan that cannot beat this rate on a guaranteed basis is offering you less certainty and less liquidity at the same time — a difficult proposition to justify.

That said, 1.92% is a 6-month rate in a rising-rate environment. If you were to roll T-bills over 2 to 3 years and rates fell (which is a real possibility given the current cycle), your effective annualised return over that period could be lower than 1.92%. This is the core risk of relying solely on T-bills for medium-term savings.

For a deeper look at T-bill mechanics, see our Singapore T-bill rate guide (Sep 2026).

Plans That Beat the T-Bill Rate

The following endowment plans offer guaranteed yields above the current 1.92% T-bill benchmark. All rates are sourced directly from official insurer documentation or MAS CompareFirst as of September 2026. Availability of each plan is subject to tranche openings and may change.

Sources: AIA #Wealth Savvy (IV) FAQ (aia.com.sg); MoneySmart Singapore (June 2026). Tranche availability may have changed — verify before applying.

The AIA #Wealth Savvy (IV) is a non-participating, single-premium endowment plan. It guarantees 2.80% per annum over 3 years. Your capital is fully guaranteed at maturity. There is basic life coverage during the policy term.

The key advantage of a 3-year endowment at 2.80% vs rolling 6-month T-bills at 1.92% becomes clearer if interest rates fall over the next 12 to 18 months. You lock in 2.80% regardless of what happens to rates.

Singlife Max Saver II at 2.00% p.a. has a shorter tenor of 2 years and a higher minimum premium of S$20,000. It is worth noting that 2.00% guaranteed is only marginally above the T-bill rate of 1.92%. The premium over T-bills is small — about 0.08 percentage points — and does not fully compensate for the 18-month difference in lock-in period.

If you plan to compare more plans currently open for subscription, the most reliable source is MAS CompareFirst, which lists all registered insurance products in Singapore.

Plans That Fall Below the T-Bill Rate

Not all endowment plans in Singapore beat T-bills right now. The DBS SavvyEndowment range, for instance, currently offers potential returns of up to 1.88% per annum for a 2-year policy.

As highlighted in our review, DBS SavvyEndowment guaranteed rates range from approximately 1.44% to 1.60% p.a. — well below the current T-bill yield. If you are comparing these plans on a pure yield basis, T-bills win clearly.

The DBS brand may provide reassurance, and the minimum entry of S$5,000 is lower than many alternatives. But the yield gap relative to T-bills is difficult to justify unless the plan offers a feature you specifically need, such as SRS eligibility or a death benefit that fits your situation.

When an endowment plan offers a lower guaranteed yield than a risk-free, 6-month government instrument, you are effectively being paid less for taking on more commitment. This is worth questioning before signing up.

How to Decide: Lock-In vs Flexibility

The right choice between T-bills and endowment plans depends on two variables: your time horizon and your view on where interest rates are heading.

The key scenario where an endowment wins: if you believe interest rates will fall over the next 12 to 24 months. In that case, locking in a guaranteed rate today protects you from reinvestment risk — the risk that when your T-bill matures in 6 months, the new T-bill rate is significantly lower.

Conversely, if you believe rates will rise further, rolling T-bills makes more sense. You can capture the higher yields as they emerge.

A middle path is to split: use T-bills for a portion of your savings that you may need within 12 months, and consider endowment plans for the portion you can leave untouched for 2 to 3 years.

Q4 2026 Outlook: Will Rates Rise or Fall?

The Federal Reserve raised rates by 25 basis points in September 2026. That resulted in the 1.92% T-bill outcome — the highest of the year.

However, Singapore’s monetary policy is managed by MAS through the Singapore dollar exchange rate, not through interest rates directly. The MAS does not set the T-bill yield. Instead, short-term rates in Singapore are influenced by global liquidity conditions and SIBOR/SORA movements.

Given that the Fed has signalled a pause after September’s hike, market consensus points toward stable-to-lower short-term rates in early 2027. If that holds, new T-bill tranches in November and December 2026 may come in below 1.92%.

For endowment plan investors, this outlook means that any plan signed in Q4 2026 locks in today’s rates — which may prove attractive 12 to 24 months from now if short-term rates decline.

For the latest T-bill auction results, bookmark the MAS Issuance Calendar.

Who Should Pick Endowments Right Now?

Endowment plans make the most sense for a specific type of saver in Q4 2026.

They suit people who have cash they know they will not need for 2 to 3 years. This could be a portion of an emergency fund top-up, a matured fixed deposit, or savings earmarked for a goal in 2028 or 2029.

They are also worth considering for SRS account holders who want to park SRS funds in a capital-guaranteed, fixed-tenor product while earning above the default SRS interest rate of 0.05% per annum.

An Endowus account (code: 2V343) offers another route for SRS funds — through diversified portfolios including bond-heavy options. This differs from endowment plans but can offer competitive returns over similar time horizons with more flexibility. A Syfe account (code: SRPRFFFCD) similarly offers cash management options for shorter horizons.

Endowment plans are less appropriate if you may need the funds early. Surrendering before maturity typically results in losing the guaranteed return and sometimes part of the principal. This is a hard constraint — there is no flexible redemption like T-bills or Singapore Savings Bonds.

For retirement planning context, our retirement calculator can help you estimate how different return rates affect your long-term savings picture.

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