What is a Singapore T-bill?

A T-bill (Treasury bill) is a short-term Singapore Government Security issued at a discount to its face value and redeemed at full face value at maturity. Singapore issues 6-month and 1-year T-bills, administered by the Monetary Authority of Singapore (MAS).

How much do I need to invest in a T-bill?

The minimum investment is S$1,000, and you apply in multiples of S$1,000. There is no maximum for individuals, though very popular auctions can result in pro-rated allotment for non-competitive bids.

How do I actually buy a T-bill?

It depends on your funding source. With cash, you apply through DBS/POSB, OCBC or UOB internet banking or ATM (and need a CDP account). With SRS, you apply through your SRS operator's internet banking. With CPF, you use the CPF Investment Scheme via an agent bank. See our step-by-step guides for each route.

What return will I get?

The return is set at auction as the cut-off yield and is only known after the auction closes. It moves with market interest rates. We do not publish a 'current' yield here — always check the latest auction results on the MAS website before applying.

T-bills are backed by the Singapore Government, so credit risk is very low. Other considerations still apply, such as reinvestment risk (the next auction's yield may be lower), opportunity cost for CPF funds, and the fact that your money is committed until maturity unless you sell on the secondary market.

Is T-bill interest taxed?

For individuals, interest income from Singapore Government Securities, including T-bills, is exempt from Singapore income tax. Tax rules can change, so confirm your own position with the relevant authority.

What is the difference between a competitive and non-competitive bid?

With a non-competitive bid you accept the cut-off yield the auction sets. With a competitive bid you state the highest yield you are willing to accept. All successful bidders receive the same uniform cut-off yield; non-competitive bids are filled first up to a capped share of the issue, and pro-rated if that cap is exceeded.

Is this website official or financial advice?

No. T-Bills Singapore is an independent educational guide. We are not MAS, CPF, a bank or a licensed financial adviser, and nothing here is financial advice. Always verify details on the official MAS website and consider your own circumstances before investing.

Singapore T-Bill Auction & Cut-Off Yield Explained

Why the yield is not known in advance

Unlike a fixed deposit where the bank tells you the rate upfront, a T-bill yield is discovered at auction. Investors submit bids, and MAS determines a single cut-off yield that clears the amount on offer.

This is why you will see people talk about the '6-month T-bill cut-off yield' after each auction — it is the result of that auction, and it moves with market interest rates.

Competitive and non-competitive bids

A competitive bid states the highest yield you are willing to accept. If the cut-off comes in at or above your stated yield, you are allotted; if the market clears at a lower yield than you asked for, you may not be.

A non-competitive bid does not state a yield — you agree to take the cut-off yield. This is simpler and is what many retail investors choose.

The uniform cut-off yield

Singapore's SGS auctions are uniform-price: all successful bidders — competitive and non-competitive — receive the same cut-off yield. You do not get a worse deal for bidding non-competitively.

The practical takeaway: bidding non-competitively removes the risk of asking for too high a yield and missing out, while still giving you the market-clearing yield.

Allotment and pro-ration

Non-competitive bids are allotted first, but only up to a set share of the total issue (a cap). If total non-competitive demand is below the cap, everyone is filled in full. If it exceeds the cap, non-competitive bids are allotted on a pro-rated basis — you may receive less than you applied for.

Because of this, a very popular auction can mean partial allotment. Any unallotted amount is returned to you. Check the latest allotment results and cap on the MAS website.

Check the latest at the source

Yields, calendars and rules change. Confirm current details on the official Monetary Authority of Singapore (MAS) website before you act.

MAS bonds & bills ↗

This guide is general educational information, not financial advice. T-Bills Singapore is independent and not affiliated with MAS, the CPF Board or any bank. Consider your own circumstances and, if in doubt, speak to a licensed financial adviser.

T-bill auctions and yields explained

Key points

Why the yield is not known in advance

Competitive and non-competitive bids

The uniform cut-off yield

Allotment and pro-ration

Check the latest at the source

Keep reading

The T-bill application timeline

T-bill risks and considerations