The Beginner’s Guide to Singapore Treasury Bills for Individual Investors 2026: What Are T-bills and How to Apply

Wondering where to park your spare cash in Singapore? With the ⁠cost of living always climbing and rates on ⁠savings accounts, many are searching for smarter ways to make their money work harder.

Enter Singapore Treasury Bills (T-bills). While their yields have come down from the highs seen in previous years, T-bills remain one option to consider alongside other low-risk products such as ⁠fixed deposits and savings accounts.

If you’ve been curious about what they are, how they work, and whether they deserve a spot in your portfolio, this beginner-friendly guide breaks it all down, so you can decide if T-bills are a fit for your financial goals.

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 1. What are T-bills?

Treasury Bills, commonly known as T-bills, are short-term Singapore Government Securities (SGS). For those new to financial jargon, here’s what T-bills are at one glance:

1. T-bills are investment securities.
2. They’re issued by the Singapore government.
3. They have a short investment duration.

While T-bills may sound similar to bonds, they operate differently.

Unlike conventional bonds, T-bills do not pay regular interest. They are issued at a discount, and investors receive the full face value when they mature.

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ALSO READ: Top 12 Questions about T-Bills in Singapore When Yields Are at Rock Bottom

2. How do T-bills work for investors?

T-bill returns are determined through an auction. Once your application is successfully allotted, your return is based on the auction’s cut-off yield and the discounted price you pay.

With bonds, you receive interest payments every six months. T-bills, however, work differently:

1. When purchasing a T-bill, you buy it at a discount from its face value.
2. At maturity, after six months or one year, the government pays you the full face value.
3. Your earnings are the difference between the discounted price you paid and the full face value you receive.

At the time of writing, the latest six-month T-bill auction on 16 July 2026 had a cut-off yield of 1.55% p.a., while the latest completed one-year T-bill auction on 16 April 2026 had a cut-off yield of 1.46% p.a. You can always check the ⁠latest benchmark yields here. Let’s illustrate with an example.  

Suppose an investor buys a six-month T-bill with a face value of $10,000 at the latest cut-off price of $99.227 per $100 of face value:

• The investor pays $9,922.70 upfront—the discounted price.
• After six months, the investor receives the full $10,000.

The investor’s earnings are $77.30, which is the difference between the $10,000 face value and the $9,922.70 purchase price.  

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3. Why is the Singapore government offering T-bills?

Unlike many other countries, Singapore does not issue T-bills to fund government spending. The proceeds raised from Singapore Government Securities and T-bills are invested and cannot be used for government expenditure.  

T-bills instead serve multiple purposes in Singapore’s financial ecosystem. Primarily, they help develop and maintain liquidity in the Singapore Government Securities market. This liquidity supports a smooth flow of transactions, provides stability to the financial system and sets benchmarks for other financial products.

The SGS market generates a government yield curve, serving as a benchmark for the corporate debt market. This helps businesses price their own debt offerings. T-bills and bonds also contribute to a secondary market for cash transactions and derivatives. This secondary market plays a vital role in risk management for various financial institutions.

For both individual and institutional investors, T-bills provide an opportunity to participate directly in the Singapore market. It’s one of the common avenues to invest in government-backed securities.

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4. What’s the difference between SGS bonds, T-bills, and Savings Bonds?

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5. How are T-bills issued?

T-bills are issued through an auction process. Think of it like an auction for a limited-edition collectible. Just as bidders compete to secure that coveted collector’s piece, investors vie for T-bills in a similar fashion.

Potential buyers can place competitive bids, trying to outdo each other. While this competitive approach is often used by large institutions and experienced investors, the government has made sure there’s an easier way for everyday investors to participate too:

a) Non-competitive bid

Non-competitive bidding is ideal for beginners or those comfortable with market-determined yields. In this bid, you only specify the amount you want to invest, not the yield.

Non-competitive bids are allotted first, up to 40% of the total issuance. If non-competitive bids exceed 40%, allocation is done on a pro-rata basis. The advantage here is that you’ll receive the T-bill at the cut-off yield, which is the highest accepted yield of successful competitive bids.

b) Competitive bid

Competitive bidding caters to those seeking a specific yield. In this application, you specify both the amount and the minimum yield you’re comfortable with. Yields are indicated in percentage terms, up to two decimal places. You’re allowed to submit multiple bids.

Allocation starts from the lowest to highest yields, after the non-competitive bids are fulfilled.

Here’s the key point: the lower the yield you’re willing to accept, the more likely you are to get your T-bills. It’s like saying, “I’m okay with less profit,” which makes your bid more attractive to the government.

However, with competitive bids, you may not get the full amount you applied for, depending on how your bid compares to the cut-off yield.

If you’re new to T-bill investing, we recommend starting with non-competitive bidding. Whenever you opt for competitive bidding, here’s what to expect:

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ALSO READ: Is Investing in T-bills Worth It?

6. Who can take part?

As long as you are an institution or an individual at least 18 years old and not an undischarged bankrupt, you can invest in Singapore T-bills, regardless of residence or nationality.

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7. Cool. So, what do I need to start?

To get started with T-bill investing, you’ll need:

1. An account with DBS/POSB, UOB or OCBC
2. An individual Central Depository account with Direct Crediting Services activated

Note: While you can’t buy T-bills with a joint CDP account, you can pay for them from a joint bank account.

Next, decide on your funding source:

1. Cash: Apply through an ATM or internet banking. UOB charges a $2 transaction fee, whereas DBS and OCBC have waived this fee.
2. CPF savings: Apply to invest using eligible Ordinary Account savings through the CPF Investment Scheme, subject to prevailing CPF rules.
3. ⁠SRS savings: Apply through the bank administering your SRS account.

For cash applications, ensure your CDP account is linked to your bank account. This allows principal payments to be credited directly to you.

Remember, each funding source has its own application process and requirements. Choose the one that best fits your financial goals and situation.

The minimum bid amount is $1,000, and you can buy your T-bills in multiples of $1,000.

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8. Bank cut-off time

If you plan to submit your bid through ATMs or internet banking, be aware that these application channels typically close one to two business days before the auction.

It’s advisable to check with your bank for the exact cut-off time for different application methods. Keep in mind that primary dealers need to submit all bids by noon on the auction closing date, so they require your application in advance to allow for processing.

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9. How do I check my auction results?

After the auction closes, you want to know if your bid was successful. Here’s how you can find out:

The aggregate auction results are published about an hour after closing on the ⁠issuance calendar. It’s a quick way to get a general sense of how the auction went.

If your bid is successful, you’ll see the T-bills reflected in your account three business days after the results are announced. Where exactly you’ll find this information depends on how you applied:

• For cash applications: Check your CDP statement
• For SRS applications: Review the statement from your SRS operator, which may be DBS/POSB, OCBC or UOB
• For CPFIS-OA applications: Look for the CPFIS statement from your agent bank

What if you make an unsuccessful or invalid bid? Don’t worry, the money will be refunded to the account you used to make the application one or two business days after the auction.

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10. Help. I made a $10,000 non-competitive bid and was refunded more than half that amount.

This can happen when non-competitive applications exceed the amount reserved for them. In that case, applicants receive a proportionate allotment, while the unused application amount is refunded.

However, don’t judge T-bill popularity based on just one auction. It’s better to look at the ratios from the last eight to 12 auctions to get a clearer picture.

The overall bid-to-cover ratio does not directly determine your personal allotment. For non-competitive bids, partial allotment happens when total non-competitive applications exceed the 40% reserved for them. We’ll walk you through an illustrative example:

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11. What do I do when I’m done with T-bills?

Congratulations on your T-bill investment! Now, you have two main options:

a) Hold until maturity

This is the most straightforward approach. Simply wait until the T-bill reaches its maturity date, and you’ll receive the full value.

Your earnings will be the difference between the face value and the discounted price you paid. Remember, unlike Singapore Savings Bonds, T-bills cannot be redeemed directly before maturity.

b) Sell on the secondary market

If you need the funds before maturity, you can try selling your T-bills through DBS/POSB, OCBC or UOB. However, be aware that the secondary market for T-bills isn’t very active. This means finding a buyer isn’t guaranteed, and you might have to sell at a less favourable price.

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12. That’s it, you’re all set.

Bookmark this page so that you can easily refer to this article when you get round to buying your first T-bills. Don’t forget to spread the love and share this guide with your family, friends, colleagues or anyone you think might find it useful.

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