Singapore T-Bill 1-Year vs 6-Month 2026: Which Should You Choose?

Singapore T-bills have become one of the most popular short-term investments for local investors — low risk, government-backed, and offering yields that often beat fixed deposits. But if you’re deciding between the 6-month T-bill and the 1-year T-bill, which one makes more sense for you right now?

Based on the latest April 2026 MAS auction results, the 6-month T-bill cut-off yield came in at 1.40% p.a. (23 Apr 2026), while the 1-year T-bill yielded 1.46% p.a. (16 Apr 2026). The gap is narrow — but your choice should come down to more than just yield. Liquidity needs, reinvestment risk, and your broader retirement or CPF strategy all play a role.

In this guide, we break down both instruments, compare their April 2026 yields head-to-head, and help you decide which is the right fit for your portfolio.

What Are Singapore T-Bills?

Singapore Treasury Bills (T-bills) are short-term debt instruments issued by the Singapore Government through the Monetary Authority of Singapore (MAS). They are sold at a discount to their face value, and the difference between your purchase price and the face value (S$1,000 per lot) represents your interest return.

Key features:

• Issued by: Singapore Government (via MAS) — AAA-rated sovereign debt
• Minimum investment: S$1,000 (multiples of S$1,000)
• Tenures: 6 months or 1 year
• Interest: Paid at maturity (zero-coupon, discount instrument)
• Eligible accounts: Cash (via bank/CDP), CPF-OA, SRS
• Tax: Returns are not subject to Singapore income tax

T-bills are auctioned on a competitive and non-competitive bid basis. Most retail investors submit non-competitive bids — you receive the auction’s cut-off yield regardless of your bid price, guaranteed allotment up to S$1 million per auction.

Latest April 2026 Auction Results

Here are the most recent cut-off yields from MAS T-bill auctions in April 2026:

Source: MAS T-Bill Statistics. Cut-off yields are indicative and subject to change at each auction.

Notably, demand for the 6-month T-bill surged to S$19.2 billion in the 23 April auction — a significant jump from S$14.6 billion previously. This reflects strong retail appetite for short-duration government paper, likely driven by global macro uncertainty and investors parking cash while waiting for interest rate clarity.

The 1-year T-bill currently offers a slight premium of 6 basis points over the 6-month instrument (1.46% vs 1.40%). This narrow spread is unusual — typically the 1-year should offer a more meaningful premium for the extra duration risk.

6-Month vs 1-Year T-Bill: Key Differences

Both instruments are issued by the same sovereign borrower and carry zero credit risk, but they differ in ways that matter to practical investors:

The Reinvestment Risk Trade-Off

With the 6-month T-bill, you’ll need to reinvest every 6 months. If rates fall by the time your T-bill matures, your next rollover will be at a lower yield. The 1-year T-bill locks in today’s 1.46% for a full 12 months — valuable if you believe rates are heading lower.

Conversely, if you expect rates to rise (e.g., due to a Fed hawkish pivot or MAS tightening), rolling the 6-month T-bill gives you the flexibility to capture higher yields sooner.

Yield Comparison: T-Bills vs Fixed Deposits vs SSB (April 2026)

T-bills don’t exist in a vacuum. Here’s how they compare to other low-risk instruments for the cash portion of your portfolio:

Rates as of April 2026. Fixed deposit rates vary by bank and deposit size. SSB 10-year average is for the April 2026 issue.

Key takeaway: At 1.46%, the 1-year T-bill edges out the SSB at the 1-year mark (1.40%) and competes closely with the best fixed deposits (up to 1.50%). The SSB’s full flexibility — redeem any month with no penalty — makes it appealing if you might need the money before maturity. However, if you’re certain you won’t need the funds for 12 months, the 1-year T-bill or a competitive fixed deposit may serve you better.

For longer-term savings (3–10 years), the SSB’s 10-year average of 2.14% is hard to beat for a capital-guaranteed product. And if the money is sitting in your CPF-OA, the baseline 2.50% return means investing in T-bills below that rate would actually reduce your effective return after accounting for the CPF floor.

You can compare T-bill, SSB, and fixed deposit yields side by side using our T-Bill, SSB & Fixed Deposit Comparison Calculator.

Who Should Choose Which T-Bill?

Choose the 6-Month T-Bill If:

• You need your money back within 6 months (e.g., upcoming housing downpayment, emergency buffer)
• You believe interest rates may rise — rolling every 6 months lets you capture higher yields
• You want to reinvest regularly and stay flexible in a volatile rate environment
• You’re using CPF-OA funds and want to align with CPF’s quarterly interest crediting cycle

Choose the 1-Year T-Bill If:

• You won’t need the capital for at least 12 months
• You believe rates will fall over the next year — locking in 1.46% now protects you from rate drops
• You want lower admin burden (only one rollover per year vs two)
• You’re building a simple bond ladder with annual rungs

Consider Alternatives If:

• Yields are below your CPF-OA rate (2.50%): Leaving funds in CPF-OA may be more beneficial than investing in T-bills at 1.40–1.46%
• You need full flexibility: Singapore Savings Bonds (SSB) offer monthly redemption with no lock-up — at the same 1-year yield of 1.40%
• You’re looking for higher income: Consider S-REITs or dividend ETFs for yields of 5–7%, with appropriate risk tolerance. See our Best S-REITs Singapore 2026 guide

For retirement planning context, understanding how your short-term cash instruments (T-bills, SSB, FD) fit alongside long-term CPF LIFE and investment assets is essential. Use our Retirement Planning Calculator to model your full income picture.

How to Apply for Singapore T-Bills

You can apply for T-bills through ATM, internet banking, or mobile banking from DBS/POSB, OCBC, and UOB. Applications open approximately 1 week before each auction and close at noon on the business day before the auction date.

Application Methods

• ATM: Select “Bonds / Bills / Shares” → “T-Bills” at any DBS/POSB, OCBC, or UOB ATM
• Internet Banking: Log in → Investments → Singapore Government Securities
• CPF-OA: Via CPF Investment Scheme (CPFIS) — submit through your bank’s CPF investment portal
• SRS: Through your SRS operator bank (DBS, OCBC, or UOB)

Non-Competitive vs Competitive Bids

Retail investors typically submit non-competitive bids. You are guaranteed full allotment at the auction’s cut-off yield, regardless of where that yield falls. Competitive bids (used mainly by institutions) specify a maximum yield — bids at or above the cut-off yield may not be fully allotted.

For most retail investors, non-competitive bids are the simpler and safer choice.

Using CPF-OA to Invest in T-Bills

One common question is whether it’s worth investing CPF Ordinary Account (OA) funds into T-bills. Here’s the key consideration:

• CPF-OA earns a guaranteed 2.50% p.a. floor rate
• The latest 6-month T-bill yields 1.40%, the 1-year T-bill yields 1.46%
• Both are below the CPF-OA floor rate — investing would reduce your returns

This means that in the current rate environment (April 2026), using CPF-OA funds for T-bills is likely not advantageous. Your CPF-OA already earns more sitting uninvested.

However, there may be tactical reasons — for example, if you expect to use the funds for a housing downpayment within the next 12 months and want the capital returned to CPF-OA in time. In that case, the slightly lower yield is an acceptable trade-off for the certainty of getting the cash back on schedule.

For SRS funds, the calculus is different — SRS earns 0.05% p.a. at the bank, making T-bills at 1.40–1.46% significantly more attractive for deployed SRS savings.

See also: CPF Investment Strategy Guide for a full breakdown of CPFIS options and when to invest your CPF-OA.

Upcoming T-Bill Auctions 2026

MAS publishes the T-bill auction calendar in advance. The 6-month T-bill is auctioned every 2 weeks (alternating Wednesdays), while the 1-year T-bill is auctioned quarterly. Check the MAS Issuance Calendar for the latest schedule.

With the 6-month T-bill now at 1.40% — down from the recent high of 1.47% (9 Apr) — the trend in early-to-mid April 2026 suggests some moderation in short-term yields. Whether this continues depends heavily on:

• US Federal Reserve rate decisions and forward guidance
• MAS monetary policy stance (SGD NEER policy)
• Demand dynamics from institutional and retail investors
• Singapore inflation and GDP outlook

For real-time yield tracking and comparison, our T-Bill, SSB & Fixed Deposit Comparison Calculator lets you model different yield scenarios for your cash allocation.

Try Our Free T-Bill Calculator

Compare T-bill, SSB, and fixed deposit yields side by side. Model your cash returns across different tenures and interest rate scenarios.

Frequently Asked Questions