In today’s climate of economic uncertainty, rising consumer prices, and volatile markets, preserving and growing your capital can feel like an uphill battle. In today’s uncertain macroeconomic environment, many Singaporean investors are understandably seeking low-risk investments that offer stability.

If you are a retail investor looking to grow your money by taking advantage of current high rates but don’t want much risk, investments that provide guaranteed principal and returns will be a good bet.

There are only a handful of low risk, guaranteed return investment products in Singapore. These include: fixed deposits, T-Bills, Singapore Savings Bonds (SSBs), Central Provident Fund (CPF) and Cash+ Guaranteed (SGD) by Syfe. But before we evaluate which one is the best option offering higher rates as well as liquidity, let’s understand them a bit more.

Table of Contents

• Understanding Guaranteed Investments: What Are They and Why They’re Important
• Fixed Deposits
• T-Bills
• Singapore Savings Bonds (SSBs)
• Singapore Government Securities (SGS) Bonds (Held to Maturity)
• Cash+ Guaranteed
• How to Choose the Right Low-Risk Investment in Singapore?
• Cash+ Guaranteed: Why It’s the Best Low-Risk Investment for You

Understanding Guaranteed Investments: What Are They and Why They’re Important

In a volatile market where uncertainty seems to be the only constant, safe, low-risk investment options provide investors in Singapore with a guaranteed return no matter what the markets throw at you. 

Why are these low risk investments so vital? First, they protect your capital, a cornerstone of any sensible low risk investment strategy. Second, and perhaps most importantly, they offer peace of mind. Knowing your money is safe and growing steadily, even when the economic forecast looks gloomy, is incredibly valuable. 

Singapore’s well-regulated financial system provides investors with a selection of safe investment options. These investments form a key part of a well-balanced portfolio, buffering against market fluctuations and ensuring long-term financial security, making them useful for both novice and experienced investors alike.

Low-Risk Investment Options in Singapore at a Glance

	Cash+ Guaranteed (SGD)	Fixed Deposit	T-Bills	Singapore Savings Bonds (SSBs)	Singapore Government Securities (SGS) Bonds (held to maturity)
Return Rate (p.a.)	Up to 2.65%	2.73%*	2.56%	Up to 2.85%	2.46 – 2.71%
Capital Guaranteed	Yes	Yes	Yes	Yes	Yes
Minimum Investment	None	Depends on tenor	S$1,000	S$500 (and in multiples of S$500)	S$1,000 (and in multiples of S$1,000)
Maximum Investment	None	None (Promotional rates capped to T&Cs)	None	S$200,000	Up to allotment limit for auctions
Term	1, 3, 6, 12 months	1-36 months	6 months or 1 year	Up to 10 years	2,5,10,15,20,30 or 50 years
Withdrawal	At maturity	At maturity	At maturity	Monthly	At maturity
SDIC Insured	Minimal	Yes (up to S$75k)	No	No	No

Sources:

Syfe Cash+ Guaranteed (SGD) rates from Syfe website on 17 March 2025

Fixed deposit rate is the average of the three highest fixed deposit rates of 3-month tenor offered by Singapore banks, excluding promotional rates. Taken on 17 March 2025.

T-Bill (6-month) rates from MAS auction data taken on 17 March 2025

SSB rates from MAS auction data taken on 17 March 2025

SGS rates from MAS bond statistics taken on 17 March 2025

Fixed Deposits

Fixed deposits are a popular safe investment option in Singapore that lets you earn higher guaranteed returns on your money compared to your savings accounts. The catch, however, is having your money locked in to access better rates. It’s a low-risk option that keeps your principal secure and gives you a fixed return at the end of the tenor.

Expected Returns

In the current environment, depending on the bank and the tenor, returns can vary vastly from 0.05% p.a. to 2.75% p.a. Higher promotional rates may seem like an attractive option but when you read the fine print, it may not be great as you’d expect. Some banks would have multiple hoops for higher rates such as minimum deposit, fresh funds or new customer criteria. Be sure to understand the T&Cs before locking yourself into this option.

Find the latest and highest fixed deposit rates in our dedicated blog.

Benefits

• Guaranteed Returns: Your principal is safe, and you know exactly what return to expect at the end of the tenor. 
• Low Risk: Fixed deposits are considered a safe investment as they are typically insured by the Singapore Deposit Insurance Corporation (SDIC) up to a certain limit per depositor per bank.
• Simplicity: Fixed deposit rates are straightforward and easy to understand, making them suitable for investors of all experience levels. 

Drawbacks

• Illiquidity: Your money is locked in for the chosen tenor. Early withdrawal usually incurs penalties which can reduce your returns and even result in losing part of your principal. 
• Additional requirements: Many promotional fixed deposit rates apply only to new funds or as part of a bundle deal linked to other banking products. Some banks also set minimum and maximum deposit requirements.

T-Bills

Treasury Bills (T-Bills) are securities issued to raise short-term funds by the Singapore government. They are widely regarded as a safe, low-risk investment option due to the government’s stability and AAA credit rating. Singapore T-Bills allow you to invest money for either 6 months or a year at competitive rates. They are also highly liquid as you can buy and sell T-Bills in the secondary market which means that you can withdraw your funds and it will take you about a week to get it back.

Expected Returns

When you bid for T-Bills, you can’t be certain of the interest rates, which are determined based on a uniform-price auction. However, you can view the results of past auctions to get an idea of the expected rates.

From August 2024 to February 2025, the median yield on 6-month T-Bills was at 2.9%. The cut-off yield for the last 6-month T-Bill auction was at 2.56% (13 March 2025).

Benefits

• Government Backed: T-Bills are considered extremely safe as they are backed by the Singapore government. 
• Flexible Short-Term Tenures: Singapore T-Bills typically have tenures of 6 months or 1 year, making them suitable for short term investment strategies.
• Liquidity: While not as liquid as cash, T-Bills can be bought and sold on the secondary market, allowing you to access your funds before maturity if needed.
• Competitive Rates: T-Bills can offer competitive returns compared to other short-term, low-risk investments, especially during periods of higher interest rates. 

Drawbacks

• Uncertainty of Returns: Because T-Bill interest rates are determined through an auction process, you cannot be certain of the exact return you’ll receive until the auction is complete. You may also get lower allocation if demand is high.
• Potential for Loss in Secondary Market: While T-Bills are generally considered safe, selling them before maturity in the secondary market can result in a loss, as the demand is limited in the secondary market. 

Singapore Savings Bonds (SSBs)

Singapore Savings Bonds (SSBs) are fixed-income securities that offer periodic interest payments and return the principal amount upon maturity, also a very popular option among Singaporeans as it’s backed by the government.

Expected Returns

The key feature of SSBs is the step-up interest rate structure where the rate increases over time. For instance, for the latest February 2025 issuance, the interest rate ranges from 2.83% to 3.15%, depending on the tenor of one to 10 years. They are redeemable in any given month, with no penalty for exiting the investment early. They provide interest payouts every 6 months which can be used towards building passive income.

Benefits

• Government Backed: Like T-Bills, SSBs are backed by the Singapore government, making them a safe investment with a high degree of security. 
• Step-Up Interest Rates: The increasing interest rate structure encourages long-term savings and provides higher returns the longer you hold the bond.
• Flexibility and Liquidity: Unlike some other fixed-income instruments, SSBs are redeemable in any given month, with no penalty for exiting the investment early. 
• Regular Payouts: SSBs provide interest payouts every six months, which can be a useful source of passive income for some investors.
• Accessibility: SSBs are designed to be accessible to retail investors, with relatively low minimum investment amounts. 

Drawbacks

• Purchase limits: individuals can invest only up to S$200,000 in total in SSBs. This cap prevents investors from deploying large sums into SSBs. 
• Potentially Lower Returns: Compared to some other investment options, including corporate bonds or even potentially some fixed deposit promotions, SSBs may offer lower returns, especially in the initial years.

Singapore Government Securities (SGS) Bonds

Singapore Government Securities (SGS) bonds are debt securities issued by the Singapore government to raise funds. They are used to finance government expenditures, such as infrastructure projects, public services, and other initiatives that benefit the nation. SGS bonds are considered a very safe investment as they are backed by the full faith and credit of the Singapore government. 

Expected Returns

SGS bond yields vary depending on factors like the bond’s maturity, prevailing market interest rates, and the overall economic climate. The latest 10-year SGS bond issued in February 2025 had closing yield of 2.79% p.a.

For existing bonds trading on the secondary market, yields will vary depending on market conditions at the time of the sale. When it comes to expected returns for SGS bonds, keep in mind that past performance is not an indicator of future results.

Benefits

• Government Backing: SGS bonds are considered a low risk investment option as they are backed by the Singapore government. 
• Regular Income: SGS bonds typically pay a fixed coupon (interest payment) every six months, providing a regular stream of income. 
• Variety of Maturities: SGS bonds are issued with a range of maturities, from two to 50 years. As a result, investors can choose bonds that align with their personal investment horizon and financial goals.
• Relatively Liquid: SGS bonds can be bought and sold on the secondary market. While not as liquid as cash, they are generally more liquid than some other fixed-income instruments.

Drawbacks

• Interest Rate Risk: Bond prices and interest rates typically have an inverse relationship. If market interest rates rise after you purchase an SGS bond, the value of your bond in the secondary market may fall. Conversely, if rates fall, your bond’s value may rise.
• Returns are not guaranteed if sold before maturity: Unlike SSBs, which can be redeemed at par, SGS bonds must be sold on the secondary market, where prices fluctuate based on interest rates and demand. If market conditions are unfavorable, investors may have to sell at a loss. 

Cash+ Guaranteed

Cash+ Guaranteed is the latest cash management solution from Syfe that offers investors guaranteed returns for their idle cash. Unlike traditional fixed deposit accounts, investors can skip the hassle of switching banks to unlock higher return rates because Syfe keeps the rates optimised and competitive by working with several providers and making them available to retail investors.

Cash+ Guaranteed guarantees you capital and returns at an attractive rate, while compounding your savings with reinvesting. It also stands out for its transparency and accessibility. The rate you see is the rate you get. There are no hidden caps, no complicated hoops to jump through, and no sneaky fees. Moreover, it requires no minimum funding amount or qualifying criteria such as salary credits. 

Expected Returns

Visit the Syfe Cash+ Guaranteed (SGD) for the most up-to-date rates and expected returns.

Benefits

• Guaranteed Capital and Returns: Cash+ Guaranteed offers guaranteed returns with the same level of security as traditional fixed deposits with a bank.
• Competitive Rates: By working with multiple MAS-regulated banks, Syfe Cash+ Guaranteed provides competitive interest rates without having to shop around for the best rates yourself. 
• Transparency and Accessibility: Cash+ Guaranteed is transparent with no minimum or maximum investment amounts, hidden fees or complicated requirements. The advertised rate is the rate you get. 
• Flexible Tenures: While your money is in fixed deposits, Syfe generally offers a reasonable degree of liquidity, allowing you to invest with 1 month, 3 month, 6 month and 12 month tenures. 

Drawbacks

• Not Directly SDIC Insured: Although the underlying assets are not directly insured by the SDIC, the risk is deemed to be very low as a result of Syfe’s policy to partner solely with MAS-regulated banks.

How to Choose the Right Low-Risk Investment in Singapore?

How do you choose the best low-risk investment in Singapore for your unique circumstances? While all of the options we covered above are relatively safer assets to invest in, there are key components that can determine whether they are suitable for you. Here’s a framework you can use to help you decide:

Rate of Returns

For short-term investments in Singapore under six months, fixed deposits generally provide the lowest average rates. While T-Bills can provide competitive returns for six-month and one-year tenors, Cash+ Guaranteed (SGD) offers similarly competitive returns and greater flexibility, with tenures ranging from one to twelve months.

Liquidity

If you anticipate needing access to your money in the near future (within one year or less), explore short-term investment options like Cash+ Guaranteed or fixed deposits with lower lock-in durations.

For long term investment options in Singapore with the most liquidity, SSBs are the best choice as you can redeem them early without penalty. 

Risk Profile

While all these investment options are considered safe and offer some form of capital guarantee, your personal risk tolerance should guide your decision. 

Essentially, how much risk you’re comfortable with will influence your choice. If you’re willing to accept some fluctuation for the potential of slightly higher returns, you might consider SGS bonds or T-Bills, as their potential returns can vary based on auction results. However, if you prioritise stability and predictable returns above all else, fixed deposits, Cash+ Guaranteed, or SSBs with clear, transparent rates will be more suitable. 

Cash+ Guaranteed: Why It’s the Best Low-Risk Investment for You

Looking for a safe, guaranteed return investment in Singapore that maximises your surplus cash? Syfe’s Cash+ Guaranteed is a compelling option for those seeking the best short-term investment with competitive returns and flexible access to their funds.

• Cash+ Guaranteed helps you shop around for the best bank fixed deposit rates, giving you competitive returns without the hassle.
• Enjoy shorter, more flexible tenures from one to 12 months, giving you more options to suit your liquidity needs. 
• Start growing your wealth with any amount of spare cash. No minimum funding required.

Read More:

• Introducing Cash+ Guaranteed

Disclaimer: Cash+ Guaranteed is a managed investment portfolio. Investments involve risk. Investment capital and returns are guaranteed if held for 3 months, subject to underlying bank risk. Full disclaimers are available at www.syfe.com. This advertisement has not been reviewed by the Monetary Authority of Singapore.