Best Investment Options in Singapore: Choosing What’s Right for You
A simple breakdown of the best investment options Singapore provides today.
Best Investment Options in Singapore: Choosing What’s Right for You
You’ve been working hard, saving steadily, and now you’re starting to wonder how you can make your money work for you. Whether you’re planning for your first child, upgrading from your BTO, or just building a rainy-day fund, the question is the same: where should you put your money?
Finding the best investments in Singapore can feel overwhelming. This guide walks you through the most common investment options in Singapore. For each one, we explain how it works, what kind of returns you can expect, and whether it fits your lifestyle and goals.
1. Government Securities
T-Bills (Treasury Bills)
T-Bills are short-term government securities with durations of 6 months or 1 year (Monetary Authority of Singapore). In simple terms, it’s like lending money to the Singapore Government for a short period in exchange for a small return.
What makes T-Bills different is how they are priced. They are sold at a discount and repaid at full value when they mature.
For example, you might pay $9,850 for a T-Bill with a face value of $10,000. When it matures, you get the full $10,000 back. The difference is your return.
Latest yield:
- 6-month: around 2.3% per annum (as of May 2025, though this may fall in coming months)
- 1-year: The closing yield as of 16 April 2025, is approximately 2.29% per annum (based on MAS data)
Issuance and structure: You pay less upfront and receive the full value at maturity
Issuance frequency:
- 6-month T-Bills are issued every two weeks
- 1-year T-Bills are issued every quarter
SGS Bonds
SGS Bonds are longer-term government securities with maturities ranging from 2 to 50 years (Monetary Authority of Singapore). These bonds pay interest every 6 months and are repaid at full value at the end of the term.
In essence, you are lending money to the government and receiving regular interest payments in return. This makes SGS Bonds suitable for people who prefer predictable income over a longer period.
Latest yield: 10-year bond: around 2.52% per year (as of May 2025)
Issuance and structure:
- Fixed interest is paid every 6 months
- Full principal is returned at maturity
Purchase method: You can buy SGS Bonds through government auctions or on the SGX (Singapore Exchange)
Singapore Savings Bonds (SSBs)
SSBs are a special type of government bond designed for individual investors. They offer low risk, flexible redemption, and step-up interest over 10 years. You can start with as little as $500, making them one of the most accessible investment options in Singapore.
The longer you hold an SSB, the higher your average return becomes. This makes them suitable for long-term savers who still want the flexibility to withdraw early if needed.
Step-up interest
- Year 1: about 2.49%
- Year 10: 2.99%
- Average return if held to maturity: roughly 2.69% per year
Principal guarantee
- You will always get back your full investment amount, plus any interest earned
- Backed by the Singapore Government
Minimum investment
- $500 (in multiples of $500)
- Applications can be made through local bank ATMs or internet banking
Redemption flexibility
- Redeem in any month with no penalty
- Receive full principal and any earned interest the following month
- A $2 fee is charged per redemption request (Ask.gov.sg)
| Feature | T-Bills | SGS Bonds | SSB |
|---|---|---|---|
| Type | Short-term government security | Long-term government bond | Special savings government bond with a step-up interest structure |
| Tenor / Maturity | 6 months or 1 year | 2 to 50 years | 10 years |
| Coupon | No coupon; zero-coupon instrument | Fixed semi-annual coupons | Step-up interest based on average SGS yields, with rates increasing annually |
| Issued At | Discount to face value | Typically at par value | Issued at face value |
| Return Mechanism | Difference between purchase price and $100 at maturity | Fixed interest payments + principal at maturity | Step-up interest accrual with full principal guarantee and flexible early redemption |
| Latest Yield (Apr 2025) | ~2.3% p.a. for 6-month T-Bill | ~2.52% p.a. for 10-year bond | 2.69% p.a. average if held to maturity |
| Purchase Methods | Government auctions | Government auctions or SGX | Banks / ATMs / i-banking ($2 fee) |
| Interest Rate Risk | Lower exposure due to shorter maturity | Higher exposure for long tenors | Negligible |
| Credit Risk | Negligible | Negligible | Negligible |
| Market Sensitivity | Low | High | None |
| Suitability | Short-term capital preservation | Predictable long-term income | Long-term savers wanting flexibility |
Risk Characteristics
T-Bills, SGS Bonds, and SSBs are considered very low risk because they are backed by the Singapore Government, which holds a top-tier AAA credit rating. This makes them some of the safest investments available to the public.
2. High-Interest Savings Accounts and Fixed Deposits
If you prefer to keep your money in the bank but still want to earn better returns than a basic savings account, high-interest bank accounts and fixed deposits are two common options in Singapore.
These products are easy to understand, low risk, and good for short-term savings.
High-Interest Savings Accounts
Some local banks offer savings accounts that reward you with bonus interest when you meet certain conditions. These accounts are useful for those who actively use one bank for multiple services.
How they work
- Base interest is low, but you can earn bonus interest
- Bonus interest is awarded if you credit your salary, use the bank’s credit card, or invest or insure through the same bank
What to know
- You need to meet the monthly conditions to get the higher interest
- Interest structures can be complex and may change over time
- These accounts are best for people who manage most of their finances with one bank
Fixed Deposits (FDs)
Fixed deposits offer a guaranteed return if you lock in your money for a set period. The interest is fixed, so you know exactly how much you will earn.
How they work
- You deposit a fixed amount for a fixed period, like 6 or 12 months
- You receive a fixed interest payout at the end of the term
- Early withdrawal is allowed but usually results in no interest payout
What to know
- Promotional rates vary by bank and may change monthly
- Higher deposits or longer terms may offer better rates
- Best suited for money you do not need to access soon
Risk characteristics
Savings accounts and Fixed deposits are very low risk and fully protected by the Singapore Deposit Insurance Scheme (SDIC) up to $100,000 per bank.
3. Central Provident Fund (CPF)
If you’re looking for a long-term, low-risk way to grow your savings, Singapore’s CPF system is a strong option. It’s government-managed, offers guaranteed interest, and helps you build funds for retirement, housing, healthcare, and other key needs.
CPF savings are split into different accounts based on purpose:
- Ordinary Account (OA) – mainly used for housing, education, and some investments
- Special Account (SA) – for retirement and long-term savings
- MediSave Account (MA) – for medical expenses
- Retirement Account (RA) – created at age 55 to prepare for monthly payouts
Current interest rates
- OA earns a minimum interest of 2.5 percent per year
- SA, MA, and RA earn a minimum of 4.0 percent per year
- Extra bonus interest is paid on the first $60,000 of combined CPF balances (CPF Board)
Bonus interest
- Members under 55 earn 1 percent extra on the first $60,000
- Members 55 and above earn up to 2 percent extra on the first $60,000 (CPF)
Withdrawal rules
- CPF is mainly for retirement, so withdrawals are restricted
- At age 55, a Retirement Account is created to hold your Full Retirement Sum. You can withdraw any savings above this amount
- At minimum, $5,000 can be withdrawn at age 55 even if you have not met the full sum (CPF Board)
Monthly payouts
- Monthly payouts begin from age 65
- Most members receive payouts through CPF LIFE, which provides lifelong income in retirement
Risk characteristics
CPF is fully backed by the Singapore Government and offers stable, risk-free interest rates. The main trade-off is liquidity. You cannot freely access your CPF savings until you meet the age and withdrawal conditions.
4. Stocks and ETFs
If you’re open to taking on more risk for potentially higher returns, investing in stocks might be worth considering. When you buy shares in a company, your investment grows if the company performs well—but prices can also fluctuate based on market news, the economy, or company results.
For a more diversified option, Exchange-Traded Funds (ETFs) let you invest in many stocks at once. They track an index, like the Straits Times Index (STI), and are traded on the stock exchange just like regular shares.
Long-term performance
- Over time, stocks tend to give higher returns than bonds or savings
- The STI has historically delivered average annual returns in the mid-single digits, including dividends (SGX, 2019)
How ETFs work
- ETFs spread your money across many companies
- This lowers the risk compared to buying a single stock
- STI ETFs are popular options for local investors who want to follow the Singapore market
How to invest
- Stocks and ETFs are bought through brokerage accounts
- You can start small and invest regularly over time
- Most platforms in Singapore offer easy access to local and global markets
Risk characteristics
Stocks and ETFs are higher-risk investments. Prices can go up and down quickly, and you could lose money in the short term. Individual stocks are riskier than ETFs, which are more diversified. It’s important to be prepared for market swings and invest for the long term (MoneySense).
5. Singapore REITs (S-REITs)
If you’re interested in real estate but don’t want to buy property yourself, REITs offer a convenient alternative. These are companies that own income-generating assets like malls, offices, warehouses, and hotels. When you invest in a REIT, you’re buying a share of those properties and earning a portion of the rental income as dividends.
Income potential
- REITs are required to pay out most of their rental income to investors
- This makes them attractive for those looking for regular cash flow
- Dividend yields tend to be higher than bank deposits and government bonds
Market trends
- REIT prices can go up or down depending on interest rates, property values, and demand
- When interest rates rise, REIT prices often fall
- However, high yields make them appealing even during uncertain periods
How to invest
- REITs are bought and sold like stocks through a brokerage account
- You can invest in a single REIT or use a REIT ETF to spread your investment across many properties
Risk characteristics
REITs carry more risk than government bonds or savings accounts. Their prices change based on market conditions, and rental income can be affected by economic downturns. Most REITs also borrow money to grow their property portfolios, so rising interest rates can impact their earnings. (REITAS)
Final Thoughts: What’s Right for You?
Every investment serves a different purpose, and the best option depends on your goals, timeline, and comfort with risk. Here’s a quick summary to help you decide:
🏛️ Government Bonds (T-Bills, SGS Bonds, SSBs): Safe and reliable. Use T-Bills for short-term savings, SGS Bonds for predictable long-term income, and SSBs for flexible, low-risk investing with step-up interest.
🏦 High-Interest Accounts & Fixed Deposits: Great for short-term savings with low risk and easy access to your money.
👵 CPF: Ideal for long-term retirement planning with guaranteed, stable returns from the government.
📊 Stocks & ETFs: Best for growing your wealth over time if you’re comfortable with market ups and downs.
🏢 REITs: A smart way to earn regular income from real estate without owning property directly.
Choose the mix that fits your lifestyle and financial goals. With the right balance, your money can grow safely and steadily over time.