Dear readers, as savers in Singapore, many of us have been actively watching the interest rate environment for months, especially given how global central banks are signaling shifts in monetary policy. For a long time, Singapore Treasury Bills (T-bills) and fixed deposits (FDs) were among the safest and most rewarding places to park idle cash. But the tide appears to be turning.
The latest 6-month Singapore Treasury Bill (T-bill), code BS25113W, which recently closed in July 2025, has delivered a cut-off yield of just 1.85% per annum. While T-bills have been the darling of conservative investors in recent years, this latest rate is one of the lowest in recent memory. The last time T-bill yields dipped below 1.9% was in early 2022, before the global inflation scare set interest rates on a sharp upward trend.
With yields from T-bills now falling below the psychologically important 2% mark, many Singaporeans are left wondering: where else can we find a safe return of 2% per annum or more on our Singapore dollars (SGD)?
I did a search online and indeed there were not many options for a 2% per annum and more interest rate on SGD. And I mean right now. Just a few months back, there indeed were options for fixed accounts giving savers 2% per annum and more interet rate but now those interest rates have whittled down to less than 2% per annum interest.
Perhaps, the only exception is DBS bank, which still offers savers a fixed interest rate of 2.45% per annum on the first $19,999 deposited, after which, 0.05% per annum board interest rate will apply.
Why Are Fixed Deposit Rates Falling Below 2%?
Several key factors explain the decline in FD and T-bill interest rates:
- Interest Rate Expectations Have Shifted: Global inflation has cooled, and many central banks, including the Fed, are now tilting toward rate cuts. Singapore’s interest rates often move in tandem with global trends.
- Local Liquidity Is Strong: Singapore banks currently have ample deposits and less incentive to offer high deposit rates to attract new funds.
- Lower MAS Bills and SORA Rates: Singapore’s short-term reference rate, the Singapore Overnight Rate Average (SORA), has been gradually declining, reflecting easing interbank funding costs.
Alternatives to Traditional Fixed Deposits
Despite the general drop in rates, all is not lost for yield-hungry savers. There are still some alternatives that offer 2% p.a. or more – especially among cash management accounts, fintech platforms, and short-term bond funds.
For example, Chocolate Finance offers its users a 3% per annum on their first $20K, 2.7% per annum on their next $30K and so on.
Don’t Forget CPF & SRS Options
For those planning for retirement or looking at longer-term saving options:
- CPF Ordinary Account still pays 2.5% p.a. risk-free.
- CPF Special Account earns 4.08% p.a. (as of July 2025).
- SRS (Supplementary Retirement Scheme) funds can be deployed into high-grade bonds or fixed income unit trusts with 2.5–4% projected yields.
These may not offer immediate liquidity, but they provide long-term, tax-advantaged yield.
Things to Watch Out For
Before jumping into a product offering “2% per annum or more,” here are some crucial factors to evaluate:
- Is the Return Guaranteed?
Fixed deposits and T-bills guarantee your return. Many fintech platforms only project returns based on underlying funds. - Is There a Lock-In Period?
Traditional FDs usually penalize early withdrawal. Fintech accounts often allow withdrawals at any time, but with short settlement periods. - Are the Funds Insured?
Bank deposits are insured under the SDIC (up to $75,000 per depositor per bank). Fintech and cash management platforms typically are not. - Is the Platform Regulated by MAS?
Always verify that the provider is licensed by the Monetary Authority of Singapore.
Conclusion: Where Should Savers Put Their Money Now?
With T-bill yields dropping below 2% and most fixed deposits not far behind, Singapore savers need to be more proactive. If you’re focused purely on safety and capital guarantee, your best bets are still short-term T-bills and the occasional high-interest bank promo like DBS’s 2.45% p.a. on limited amounts.
However, for savers willing to explore newer platforms and accept a slight uptick in risk, cash management accounts such as Chocolate Finance, Endowus Cash Smart, and moomoo Cash Plus are offering returns well above 2% p.a. – and they come with flexibility.
As interest rates continue to shift, it’s important to regularly review your cash allocations and adjust based on your risk appetite and liquidity needs.
What do you think? Have you found other ways to earn more than 2% p.a. on your SGD savings? Share your experience!