Top Fixed Deposit Rates in Singapore offer 1.65% yield – With T-Bills yields plunging to 1.44%, are REITS, Bonds or Fixed Deposits a better buy? (Sept 2025)

As you have probably heard by now, the latest T-Bills yields fell to a dismal 1.44%.

At 1.44% yield, T-Bills just look dismal, considering you cannot get the funds back before maturity.

And fixed deposits start looking pretty attractive once again.

In fact, REITs or bonds offering 5% yield actually look like a pretty good buy in this interest rate climate.

Couple of points I wanted to discuss:

1. What are the Top Fixed Deposit Rates in Singapore today (September 2025)?
2. With T-Bills yields plunging to 1.44%, are REITS, Bonds or Fixed Deposits a better buy?
3. Where would I put my cash today?

Top Fixed Deposit Rates in Singapore offer 1.44% yield (September 2025)

The full table is further below in the article, but I’ve summarised the best interest rates for the 3-, 6- and 12-month tenures below.

You’re looking at 1.65% for 3 months and 1.60% for the 6 months tenure.

And 1.60% for the 12 months tenure.

Basically interest rates are flat at 1.6%ish across the curve.

Tenure	Best fixed deposit interest rate (September 2025)	Bank
3 months	1.65%	Bank of China
6 months	1.60%	Bank of China
12 months	1.60%	DBS/POSB Bank

Best Fixed Deposit Rates yield 1.45% if you deposit with Syfe Cash+ (to access institutional fixed deposit rates)

The rates above are assuming that you deposit with the bank directly as a retail customer.

Previously, if you park the cash with the bank as an institutional customer via channels like Syfe Cash+ Guaranteed, you stand to get a higher interest rates.

However, this is no longer the case.

Because these are the latest interest rates from Syfe Cash+ below:

• 3 months – 1.45%
• 6 months – 1.40%
• 12 months – 1.30%

Because of that you’re probably better off just sticking with the plain vanilla fixed deposit – which has the benefit of being SDIC insured up to $100,000.

6-month T-Bills yields drop to 1.44% – Will T-Bills yields continue to drop?

Meanwhile, 6-month T-Bill yields continue to plunge, coming in at 1.44% at the latest auction:

You can see this charted below, T-Bills yields have been steadily declining since the peak in late 2022:

And frankly, I don’t see anything that suggests that will change going forward.

Sure maybe we get a mild rebound in yields.

But I don’t think we’ll be recovering back to the 3.0% range unless something material changes in markets.

Just look at the number of interest rates priced in by markets:

Comparing interest rates for T-Bills vs Fixed Deposits vs Syfe Cash+ Guaranteed across all tenures (September 2025)

I’ve tabulated the interest rates for the 3 cash options below, as well as with money market funds.

You can see how with the recent drop in T-Bills and institutional fixed deposit yields – actually retail fixed deposits are a pretty attractive option.

	3 months	6 months	12 months	Risk Free
T-Bills yields	NA	1.44%	1.54%	Yes
Fixed Deposit (direct to bank)	1.65%	1.60%	1.60%	Yes (if below $100,000 SDIC limit)
Syfe Cash+ Guaranteed (Institutional Fixed Deposit Rates)	1.45%	1.40%	1.30%	No
Money Market Funds	~2.0%			No

Best Fixed Deposit Rates yield 2.45% – if you deposit directly with the bank (as of September 2025)

The full list of Fixed Deposit rates is set out below (bold being the most attractive for each tenure).

After the table I’ll share my views on:

1. With T-Bills yields plunging to 1.44%, are REITS, Bonds or Fixed Deposits a better buy?
2. Where would I put my cash today?

Bank	Interest rate per annum	Tenure	Minimum amount
Bank of China	1.65%	3 months	S$500
	1.60%	6 months	S$40,000
	1.50%	9 months	S$400
	1.55%	12 months	S$40,000
DBS/POSB	1.60%	12/9 months	S$1,000 (max S$19,999)
	1.40%	6 months	S$1,000 (max S$19,999)
CIMB	1.60%	3 months	S$10,000
	1.55%	6 months	S$10,000
	1.30%	9/12 months	S$10,000
ICBC	1.50% (mobile placement)	3/6 months	S$500
	1.45% (mobile placement)	9/12 months	S$500
UOB	1.50%	6 months	S$10,000 (fresh funds)
	1.30%	10 months	S$10,000 (fresh funds)
Hong Leong Finance	1.42% (mobile placement)	8/9 months	S$20,000
	1.40% (mobile placement)	11/12/13 months	S$20,000
Maybank	1.45% (mobile placement)	6 months	S$20,000
	1.40% (mobile placement)	9 months	S$20,000
	1.35% (mobile placement)	12 months	S$20,000
RHB	1.40% (mobile placement)	3 months	S$20,000
	1.10% (mobile placement)	6 months	S$20,000
	1.00% (mobile placement)	12 months	S$20,000
Citibank	1.40%	3/6 months	S$10,000
OCBC	1.35% (mobile placement)	9/12 months	S$30,000
Standard Chartered	1.30%	6 months	S$25,000 (fresh funds)
SBI	1.25%	3/6 months	S$5,000
HSBC	1.05%	3 month	S$30,000
	0.95%	6 month	S$30,000
	0.80%	12 month	S$30,000

What are the alternatives to T-Bills and Fixed Deposit?

Let me outline the key alternatives to T-Bills and Fixed Deposits below.

High Yield Savings Accounts – UOB One, DBS Multiplier, OCBC 360 etc

Interest rates for high yield savings accounts have been revised down of late.

UOB One has dropped interest rates (2.5% effective interest rate on $150,000)

UOB one has dropped their interest rates.

And these are the effective interest rates – 2.50% on $150,000, if you hit the criteria of $500 credit card spend and salary credit.

Balance tier	New: spend $500 + salary	Effective Interest Rate (New)	Effective Interest Rate (Old)
First $75k	1.50%	1.50%	2.30%
Next $50k	3.00%	2.10%	2.86%
Next $25k	4.50%	2.50%	3.21%
> $150k	0.05%

If you can fulfil the criteria without too much trouble.

I still think it’s worth it, as the 2.5% is still higher than other options like fixed deposits or T-Bills – as you can see above.

That said, if you find it too much of a hassle, or don’t want to put the full $150,000 in, then it probably doesn’t make sense.

And you’re better off with the other options on this list.

Money market fund instruments (like MariInvest)

Alternatively there is MariInvest which is a money market fund that pays about 2.2% over the past 30 days for me.

But given T-Bills are yielding 1.44%, I think money market funds are a pretty decent option right now, especially as you can get the money back any time with T+1 liquidity.

There is some investor discretion required here though, as unlike T-Bills, money market funds are not risk free.

Singapore Savings Bonds are an acceptable alternative too

Interest rates on last month’s Singapore Savings Bonds below.

You’re looking at 1.71% for the first 3 years, stepping up to 2.11% over 10 years.

Funnily enough this is actually higher than fixed deposits and T-Bills, and definitely worth checking out.

That said next month’s Singapore Savings Bonds are likely to come down a bit.

What about REITS or Bonds?

I wrote an article for FH Premium subscribers recently.

Long story short – I think REITs are a pretty decent buy today, especially with the sharp drop in interest rates.

A blue-chip REITs like CICT today pays about 5.5% dividend yield.

This was a lot less sexy when you could get 3% on a T-Bill (2.5% yield spread).

But when a T-Bill is sub 1.5%, you’re getting a whopping 4% spread vs a T-Bill.

I added to my REITs positions recently, and I think they’re worth considering if you’re happy to take on some risk.

PIMCO GIS Income Fund via Maribank

For more duration, you can consider buying a bond fund.

One example is the PIMCO GIS Income Fund, that you can access via Maribank.

I wrote a detailed review so do check it out if you are keen.

Bottom line is that these bond funds are quite a complex instrument, and not for everyone.

Because if interest rates go up, you can suffer mark to market capital losses.

And there is no way to hold to maturity as the bond fund will automatically reinvest proceeds.

So effectively there is some timing element involved here, in that you want to buy the fund when yields are high, and sell when yields are low, and if you do it the other way around you could see mark to market capital losses.

Best used only if you have a mid to longer term investment horizon.

But that being said.

The thought process here is similar to REITs.

If you are comfortable with some risk of capital loss.

Then you can get a 5%ish yield on something like the PIMCO GIS Income Fund today. That’s worth considering.

Where would I put my cash today?

Personally I haven’t really touched fixed deposits or T-Bills in a while, and after today’s article I don’t really see much that would lead me to change my mind.

Most of the cash that I want in low risk instruments – I’m parking in money market funds, or UOB One (or Singapore Savings Bonds purchased previously at 3%+ yields).

Recently, I’ve actually been adding some REITs as well.

Yes I know that it’s not risk free so not a pure replacement for cash, but the way I see it, as long as I have enough liquid cash set aside, I don’t mind taking on a bit more risk and duration with the rest of the funds, for a higher yield.

But that’s just me – and I would love to hear what you guys think!

Where are you parking your cash for yield today?