Singapore savers are being paid noticeably more to hold cash than they were a year ago. The November issue of Singapore Savings Bonds offers an average return of 2.45% a year if held for the full 10 years, and six-month Treasury bills cleared at a cut-off yield of 1.95% at the Oct. 22 auction, according to figures compiled by the investment research site Beansprout.

Both readings sit well above year-earlier levels. The November 2025 savings bond averaged 1.83% over 10 years, and the six-month bill auctioned on Oct. 9, 2025, cleared at 1.44%, Beansprout's records show.

The rise matters for households that keep emergency funds and short-term savings in government paper or bank deposits, where each quarter point changes the income on a six-figure balance by hundreds of dollars a year.

Bonds, bills and deposits all moved up

The November bond, coded GX26110X, pays 1.67% in its first year, with the rate stepping up in later years to produce the 2.45% average. The previous issue averaged 2.32%, and the September issue 2.25%, Beansprout reported. Savings bonds can be bought from S$500, with a cap of S$200,000 per person, and can be redeemed early without a penalty, according to a guide by digital wealth platform Endowus. Interest on them is tax-exempt.

Six-month bill yields have climbed in steps through the year. The cut-off was 1.40% at a May 7 auction, 1.55% on July 16 and 1.90% on Oct. 8 before the latest sale, Beansprout data show.

Bank deposits followed. The best 12-month Singapore dollar fixed deposit rate on Beansprout's list was 2.10% as of Oct. 21, offered by CIMB with a S$10,000 minimum and by RHB with S$20,000. In late July, the top 12-month rate on the same list was 1.60%, at digital bank GXS. For six months, HL Bank and Bank of China were each offering 2.05% in October, though Bank of China's rate required at least S$200,000.

Savings accounts are paying more on larger balances too. CIMB's FastSaver offered up to 2.12% a year on S$100,000 of fresh funds without salary crediting or card spending, while OCBC's 360 account paid up to 2.20% to customers meeting salary, balance and card-spending conditions, Beansprout reported.

Why rates are rising

The move reflects higher borrowing costs abroad. The US Federal Reserve raised its target range by a quarter point to 3.75% to 4% on Sept. 16, its first increase since 2023, according to a market note by investment platform Syfe. The one-year US Treasury yield stood at 4.42% on Oct. 7, Beansprout said.

At home, the Monetary Authority of Singapore kept the rate of appreciation of its Singapore dollar policy band unchanged on Oct. 14, after raising it very slightly in July. In its statement, MAS pointed to higher interest rates in advanced economies and said global financial conditions would tighten. It expects core inflation to average 1.5% to 2.0% this year.

Money market funds have repriced as well. Fullerton's SGD Cash Fund showed an indicative seven-day annualized yield of about 1.48% on Oct. 22, up from about 0.93% in late July, according to Beansprout. Such funds are not capital guaranteed and are not covered by deposit insurance.

Choosing between them

Each product carries a different trade-off. The 2.45% savings bond figure is earned only by holding for a decade; a saver who redeems after a year receives close to the 1.67% first-year rate. T-bills tie money up for six months. Fixed deposits typically forfeit most or all accrued interest if broken early, Endowus noted, and many promotional rates apply only to fresh funds.

Protection also differs. Singapore dollar deposits, including fixed deposits and savings accounts, are insured by the Singapore Deposit Insurance Corp. up to S$100,000 in aggregate per depositor per member bank, according to disclosures by Trust Bank and HL Bank. Savings bonds and T-bills are issued by the government rather than a bank.

The next signal comes from Washington, where the Fed meets on Oct. 27 and 28. Beansprout projected on Oct. 23 that the next savings bond issue would average about 2.40%, slightly below the November issue, a sign that the climb in government savings yields may be leveling off even as bank deposit rates keep edging up.

This article is general information, not financial advice.