Is Investing in T-bills Worth It in 2024?

Is Investing in T-bills Worth It in 2024?

So, you have some extra cash and want to invest it before you accidentally spend it on a virtual reality headset. However, you don’t want to spend your weekends researching the stock market. Yet, you do want to beat the rising inflation rates and less than competitive interest rates banks offer for your savings account. 

Treasury bills, or T-bills, might be the answer. They provide a low-risk investment opportunity and can diversify your portfolio. You simply invest your money and wait for the T-bill to mature, without needing to monitor the market.

For those averse to risk, one of the best features of T-bills is that they’re issued by the government, making them a relatively safe investment. As we enter 2024, a question arises: Is investing in T-bills still a wise decision?

How did the latest T-bill fare?

The latest 6-month Singapore T-bill (BS24106W) held on 27 Mar 2024 offered a cut-off yield of 3.80%

The previous 6-month Singapore T-bill (BS24105X) held on 14 Mar 2024 offered a yield of 3.78% p.a..

For a more detailed guide on how T-bills work, read our guide here


Are T-bills still worth investing in 2024?

2023 was a great year for those looking to invest in T-bills. T-bills saw a high in terms of interest, with yields crossing 4% multiple times. This was largely due to the high-interest rate environment and the US Fed’s continuous rate hikes.

2023 interest rates for 6-month T-bills


Image: MAS

While T-bills offered attractive yields at the end of 2023, it’s crucial to bear in mind that the financial market is unpredictable and subject to fluctuations.

T-bill yields are typically influenced by a variety of factors, including:

  • Inflation rates
  • Central bank policy
  • The broader economic conditions
  • Investor sentiment towards risk.

As a result, potential investors should be prepared for these variables and their potential impact on T-bill performance.

2024 interest rates for 6-month T-bills

Image: MAS

Current 6-month T-bill (as of 1 April 2024)

  • Price: 98.135
  • Yield: 3.74%

When compared to the Central Provident Fund (CPF) in Singapore, a 6-month T-bill could potentially offer a higher yield than the CPF Ordinary Account, which offers a guaranteed annual CPF interest rate of 2.5% or the 3-month average of major local banks’ interest rates, whichever is higher. 

Comparatively, it may be more profitable to voluntarily contribute to your CPF Special, Medisave Account (SMA), and Retirement Account (RA), which can yield up to a 4% return per year.

In comparison to fixed deposits in banks, T-bills could potentially offer a significantly higher yield. The interest rates for fixed deposits currently range from 0.05% to 1.3% per annum for a 12-month tenure, depending on the bank. 

Therefore, T-bills could be an attractive low-risk investment option, offering significantly higher returns than Singapore fixed deposits rates.

How to buy T-bills?

Before initiating your application for T-bills, ensure you have:

  • An active bank account with any of the local banks in Singapore (DBS/POSB, OCBC, or UOB).
  • A Central Depository (CDP) account linked to the bank account you wish to use for your investment.
  • A CPF Investment Account with DBS/POSB, OCBC, or UOB if you’re making CPFIS-OA investments (not required for CPFIS-SA investments).
  • An SRS account if you intend to use your SRS funds.

How to apply for T-bills?


  • Cash:
  • Via an ATM (only DBS/POSB, OCBC, or UOB) in your vicinity.
  • Through Internet Banking under the “Singapore Government Securities” option.


*Do note, if you apply via DBS, the S$2 transaction fee (excluding GST) is waived.


  • SRS: You can apply through the internet banking platform of your SRS Operator (DBS/POSB, OCBC, or UOB).


Can I use by CPF to buy T-bills?

You can apply for T-bills at your CPF Investment Scheme (CPFIS) agent bank (DBS/POSB, OCBC, UOB) or online if you’re a DBS, OCBC, or UOB customer. 

Remember, banks will charge a one-time S$2.50 fee (excluding GST) per transaction and a quarterly S$2 service fee (excluding GST) per counter. Using your CPF Ordinary Account (OA) will cost S$7.09 after GST.

Only CPF-OA can be used to purchase T-Bill, with several limitations – rightfully so, considering that  CPF is meant to contribute towards your retirement:

  1. T-bills must have a remaining maturity of at least 1 year.
  2. The total investment in T-bills and other non-guaranteed investments cannot exceed 35% of your investible savings.
  3. The total amount of your investment in T-bills, including other non-guaranteed investments and gold, cannot exceed 10% of your investible savings.

When is the next T-bills auction date?

Upcoming 6-month T-bill auction dates:

Announcement Date Auction Date Issue Date Maturity Date Tenor Issue Code ISIN Code
03 Apr 2024 11 Apr 2024 16 Apr 2024 15 Oct 2024 6-month BS24107N SGXZ93751485
18 Apr 2024 25 Apr 2024 30 Apr 2024 29 Oct 2024 6-month BS24108V SGXZ83501924
02 May 2024 09 May 2024 14 May 2024 12 Nov 2024 6-month BS24109A SGXZ25011966
15 May 2024 23 May 2024 28 May 2024 26 Nov 2024 6-month BS24110T SGXZ12438883
30 May 2024 06 Jun 2024 11 Jun 2024 10 Dec 2024 6-month BS24111X SGXZ81105322
12 Jun 2024 20 Jun 2024 25 Jun 2024 24 Dec 2024 6-month BS24112W SGXZ29011285
27 Jun 2024 04 Jul 2024 09 Jul 2024 07 Jan 2025 6-month BS24113N SGXZ29447257
11 Jul 2024 18 Jul 2024 23 Jul 2024 21 Jan 2025 6-month BS24114V SGXZ57225237
25 Jul 2024 01 Aug 2024 06 Aug 2024 04 Feb 2025 6-month BS24115A SGXZ93535995
07 Aug 2024 15 Aug 2024 20 Aug 2024 18 Feb 2025 6-month BS24116E SGXZ19202407
22 Aug 2024 29 Aug 2024 03 Sep 2024 04 Mar 2025 6-month BS24117F SGXZ56660376
05 Sep 2024 12 Sep 2024 17 Sep 2024 18 Mar 2025 6-month BS24118Z SGXZ71864045
19 Sep 2024 26 Sep 2024 01 Oct 2024 01 Apr 2025 6-month BS24119S SGXZ23627573
03 Oct 2024 10 Oct 2024 15 Oct 2024 15 Apr 2025 6-month BS24120V SGXZ87934956
17 Oct 2024 24 Oct 2024 29 Oct 2024 29 Apr 2025 6-month BS24121A SGXZ65299968
30 Oct 2024 07 Nov 2024 12 Nov 2024 13 May 2025 6-month BS24122E SGXZ72902281
14 Nov 2024 21 Nov 2024 26 Nov 2024 27 May 2025 6-month BS24123F SGXZ28140713
28 Nov 2024 05 Dec 2024 10 Dec 2024 10 Jun 2025 6-month BS24124Z SGXZ29257813
12 Dec 2024 19 Dec 2024 24 Dec 2024 24 Jun 2025 6-month BS24125S SGXZ30036156


Upcoming 1-year T-bill auction dates:

Announcement Date Auction Date Issue Date Maturity Date Tenor Issue Code ISIN Code
11 Apr 2024 18 Apr 2024 23 Apr 2024 22 Apr 2025 1-year BY24101X SGXZ80447410
18 Jul 2024 25 Jul 2024 30 Jul 2024 29 Jul 2025 1-year BY24102W SGXZ31182504
10 Oct 2024 17 Oct 2024 22 Oct 2024 21 Oct 2025 1-year BY24103N SGXZ73155558


What Are The Best Alternatives to T-bills In 2024?

T-bills, high-quality bonds, high-dividend stocks, and short-term endowment plans are all viable options for those seeking low-risk, short-term investments. T-bills offer a safe investment with attractive rates, but if you’re considering alternatives, here are some comparisons:

Investment Option Description Advantages
High-Quality Bonds High-quality bonds, like Singapore Savings Bonds, are similar to T-bills but more flexible. They offer regular interest payments and can be sold at any time. Regular income, liquidity, adaptability to changing financial needs and market conditions
High Dividend Stocks Shares from stable, established companies that regularly distribute dividends. They carry more risk than T-bills and bonds. Potential for regular income and capital appreciation, high liquidity
Short-Term Endowment Plans Insurance products that combine savings and protection, designed to grow your savings over a fixed term, typically 2 to 6 years. Offers a return on investment, guaranteed returns with a committed term


Final thoughts

T-bills continue to be a viable low-risk investment option. However, it’s important to not just consider the low risk, but also evaluate the potential returns as compared to other investments.

When considering T-bills, take into account the liquidity of your investment. T-bills do not offer early redemption, which means your money is tied up until maturity. If you anticipate needing access to your funds before the maturity date, a more liquid investment might be more suitable. After all, your financial goals, risk tolerance, and investment horizon should all factor into your decision, along with the current and projected state of the market.


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