T-Bill vs SSB vs Fixed Deposit 2025

T-bills are short-term government securities (3–12 months) issued at a discount and redeemed at full value. SSBs (Singapore Savings Bonds) are long-term bonds (10 years) with step-up interest rates that increase over time. T-bills offer fixed upfront rates; SSBs offer flexibility and capital guarantee with early redemption options.

Yes, you can redeem SSB anytime after the first month. Early redemption is at par value (no penalty), so you get your full capital back plus interest accrued to the redemption date. However, you forfeit the higher interest rates in later years. This flexibility makes SSB attractive for long-term savers who value optionality.

Yes. Both T-bills and SSBs are issued by the Singapore government and are 100% capital-guaranteed. They are considered risk-free investments. Fixed deposits from licensed banks are also capital-guaranteed up to S$75,000 per depositor per bank under the CDIC scheme.

A T-bill (Treasury Bill) is a short-term government loan. You buy a T-bill at a discount (e.g., S$9,900 for a S$10,000 face value) and receive the full S$10,000 when it matures. The difference is your interest earned. T-bills mature in 3, 6, or 12 months and can be traded on the secondary market before maturity.

It depends on your timeline: Short-term (less than 6 months) → T-bills offer fixed rates and high liquidity. Medium-term (6 months to 2 years) → T-bills or promotional FDs. Long-term (5+ years) → SSBs offer rising rates and capital guarantee with early redemption flexibility. Use this calculator to compare rates for your specific period.