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With over S$15 billion in applications and just over S$6 billion in potential issuance, Singapore’s most recent auction of six-month Treasury notes (T-bills) in early April 2025 saw an incredible demand. This is not an anomaly. As a clever and somewhat safe strategy to counteract the long-lasting impacts of inflation, more Singaporeans are putting their money in T-bills.
Why T-bills are popular with regular Singaporeans
You are undoubtedly feeling the pinch yourself, with utilities rising, hawker meals becoming more expensive, and shopping bills going up. Even though bank savings rates have somewhat increased, they frequently fall short of inflation. Because treasury bill Singapore offers provide higher rates without needing a significant upfront commitment, they have drawn the interest of regular people.
The Singaporean government issues short-term debt securities called T-bills. You purchase them at a discount, and you get the full-face value when they mature, which is typically within six months or a year. Your interest gained makes up the gap. At around 3.66% annually, the April 2025 six-month T-bill return is substantially higher than that of the majority of fixed deposits and low-risk savings accounts.
How, without realizing it, you are already using T-bills
You are following the trend if you have ever invested your CPF funds in treasury bill Singapore auctions. To increase their profits, many CPF members are opting to invest their CPF Ordinary Account balances in T-bills. This strategy has grown in popularity, particularly among people who are getting close to retirement and want to shield their money from inflation-related depletion.
To lock in profits above 3.5%, individuals like Mr. Lee, a 58-year-old private instructor, have moved tens of thousands from CPF onto T-bills. He is not by himself. To make the process more accessible to all, banks are even permitting online applications for T-bills through CPF.
Why T-bills are an effective inflation hedge
In contrast to erratic stocks or speculative cryptocurrency, the Singaporean government backs T-bills. This indicates that you are assuming less risk. Capital preservation becomes as crucial as growth in a society where prices are increasing more quickly than salaries. Singapore yields on Treasury bills enable you to stay up to date with inflation and, in certain situations, surpass it.
Even if you may not consider yourself an investor, T-bills are best suited for those who wish to build their money in a responsible manner. Beating the market is not the goal. The goal is to prevent inflation from subtly reducing your purchasing power.
Using money wisely in a high-rate setting
T-bills are a far better option than letting cash sit around if you know you will not need it in the next six to twelve months. To guarantee a consistent flow of maturing bills and interest revenue, some astute Singaporeans are even constructing T-bill ladders, which involve varying their investments every few months.
Small company owners, retirees, and young professionals are all employing this tactic. They value the predictability and liquidity it provides. Singapore issues a lot of Treasury bills, so you have plenty of chances to participate or reallocate.
Starting without giving it too much thought
Purchasing T-bills does not require you to be an expert in finance. For a possibly greater return, apply using your CPF or online banking with DBS, OCBC, or UOB. You can determine whether the time is appropriate by visiting the MAS website, which lists forthcoming auction dates and yield details.
Adopting Singaporean treasury bill alternatives is a proactive move toward financial stability. It is not ostentatious, yet it works. And that is precisely what smart money looks like in the current environment.
Even while T-bills will not make you rich right away, they will help you keep the things you have worked so hard to earn. You can rely on that victory over inflation.
