Fixed Income Investments in Singapore: A Beginner’s Guide (2026)
Updated: 12 Nov 2026
Written byChing Sue Mae
Disclaimer: The information on this page is for general educational and informational purposes only and should not be considered financial or investment advice.
Fixed income investments, such as Singapore Savings Bonds (SSBs), Treasury bills (T-bills), government bonds and bond funds, pay you predictable interest in exchange for lending your money. In Singapore, government-backed options currently pay around 1.8% to 2.4% a year, with very low risk to your capital.
Fixed income in a nutshell
Not every investment needs to chase big returns. Fixed income gives your portfolio stability and a regular income stream, and it can help cushion the swings of stocks. Alongside steadier options like blue chip stocks and index-tracking exchange traded funds (ETFs), it’s one of the simplest ways to invest with less risk.
For the risk averse, fret not — there are still plenty of investment options for you to choose from, be it the steadier blue chip stocks, well-diversified, index-tracking exchange traded funds (ETFs) or fixed income investments.
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Which fixed income option suits you?
Fixed income options in Singapore compared
| SSBs | 6-month T-bills | SGS bonds | Bond ETFs | Bond unit trusts | |
|---|---|---|---|---|---|
| Minimum | S$500 | S$1,000 | S$1,000 | 1 unit (varies) | Varies by fund |
| Tenure | Up to 10 years | 6 months | 2 to 50 years | None (sell anytime) | None |
| Liquidity | Redeem any month, no penalty | Hold to maturity or sell on SGX | Sell on SGX before maturity | Trade on SGX | Redeem via fund house |
| Current yield | 2.39% p.a. (10-yr avg, Dec 2026 issue) | 1.86% (4 Nov 2026 auction) | Varies by issue | Varies by fund | Varies by fund |
| Funds you can use | Cash, SRS | Cash, SRS, CPF OA (CPFIS) | Cash, SRS, CPF OA (CPFIS) | Cash, CPF OA for approved ETFs | Cash, CPF/SRS for approved funds |
What are fixed income investments?
Fixed income investments are a lower-risk asset class that pays you a set return. Bonds are the most common type, which is why the two terms are often used interchangeably.
Bonds are debt instruments issued by governments and companies. These entities borrow investors’ money and pay interest in return, so they have the capital they need for purposes such as expansion and growth.
When you invest in a bond, you put in a lump sum in return for regular interest payments (called coupons) over a set period. The coupon rate is typically fixed before you apply. When the bond matures, you get your principal back.
Here’s a simplified example of what a bond might look like:
- Interest rate (coupon): 3% p.a., paid twice a year
- Maturity: 10 years
- Minimum investment: S$1,000
If you invest S$10,000 in this bond, you’ll receive S$300 a year (two payments of S$150) for 10 years, then get your S$10,000 back at maturity. That’s S$13,000 in total, made up of S$3,000 in interest and your S$10,000 capital.
| Pros of fixed income products | Cons of fixed income products |
|---|---|
| Stable asset class with foreseeable returns | Risk of default |
| Diversifies your portfolio | Lower returns than other investment types (inflation risk) |
| Preserves your starting capital | Low liquidity |
| Steady stream of income | Interest rate risk |
Why invest in fixed income products?
#1 Stable asset class
Fixed income investments come with expected payouts. This gives you some visibility into the returns you’ll receive in the coming months or years. Compared to asset classes that fluctuate with market conditions, fixed income products add a layer of stability to your portfolio.
#2 Diversification of portfolio
Besides providing stability, fixed income products help you diversify your portfolio. This means spreading your eggs across different baskets, which helps balance out the volatility of asset classes such as stocks and commodities.
#3 Preserve investment capital
Bonds are one way to help you preserve your starting capital. Coupon payouts aside, you’ll receive your principal back at the end of the tenure. This is especially true for government-backed bonds such as Singapore Savings Bonds.
There is one caveat: some higher-risk bonds can end with the company defaulting.
#4 Steady stream of income
Bonds pay coupons at regular intervals, which gives you a consistent stream of income. This is similar to how annuity plans work.
What are the risks of investing in fixed income products?
As safe as fixed income might sound, it comes with its own set of risks, like all other investment products.
#1 Risk of default
The biggest risk of fixed income products is the issuer defaulting on the bond. If that happens, you won’t receive your coupon payouts and could also lose your capital.
This is why it’s important to check the bond’s credit rating. The better the issuer’s rating, the lower the risk of default, because the rating reflects the issuer’s creditworthiness. For example, on the S&P Global Ratings scale, the highest grade is AAA, followed by AA and A, and all of these are investment grade ratings.
If you’re risk-averse, stick to bonds with investment grade credit ratings or bonds backed by the government.
#2 Lower returns than other investment types
Fixed income products typically offer lower returns. This means they face inflation risk: the risk that inflation outpaces your returns and erodes the real value of your capital.
You may be better off putting some of your money into products that offer similar returns with more flexibility, such as cash management accounts or the lower-risk portfolios offered by robo-advisors.
#3 Low liquidity
Bonds come with a maturity period. To receive the full coupon payouts and get your principal back, you’ll have to hold the bond for the full tenure, so your money is locked up for those years. There are a few exceptions, such as SSBs, which let you redeem in any month.
The other way out is to sell your bond on the stock exchange. However, listed bonds can have low liquidity, meaning there may be little demand for them. Without a willing buyer, you won’t be able to sell.
#4 Interest rate risk
When interest rates rise, the market price of existing bonds tends to fall. That’s because new bonds pay higher returns, which makes older, lower-paying bonds less attractive. You’re only exposed to this risk if you plan to sell before the bond matures.
The flip side is that yields on new bonds track the wider rate environment. In 2026, short-term Singapore government yields have climbed back towards 2%. The December 2026 SSB averages 2.39% a year over 10 years, and 6-month T-bills reached a 2026 high of 1.95% in October before easing to 1.86% in November.
Types of fixed income investments in Singapore and how to buy them
Here are the fixed income investments you can buy in Singapore, particularly if you’re looking to DIY your portfolio.
Before you buy any fixed income product
Check who backs the bond
Government bonds carry the lowest default risk. For corporate bonds, check the credit rating.
Match the tenure to your timeline
Selling before maturity can mean a loss if rates have risen. SSBs are the exception.
Compare against fixed deposits
Short-term FDs and savings accounts sometimes beat T-bills and SSB first-year rates.
Know which funds you can use
SSBs take cash or SRS. T-bills and SGS bonds also accept CPF OA via CPFIS.
Count all the fees
Brokerage, custody and fund fees eat into bond returns more than stock returns.
- Singapore Savings Bonds (SSBs)
SSBs are the best-known bonds in Singapore. They’re a type of Singapore Government Securities, issued and backed by the government. The minimum investment is S$500, and you can hold up to S$200,000 in SSBs at any one time.
SSB interest rates step up each year you hold the bond, and each month’s issue has a different rate. For example, the December 2026 issue pays 1.83% in its first year and averages 2.39% a year if held for the full 10 years. You can redeem your SSBs in any month without penalty and get back your principal plus the interest earned so far.
You can apply with cash through DBS/POSB, OCBC and UOB ATMs or internet banking, or use your SRS funds via internet banking. CPF funds can’t be used for SSBs. Check this month’s SSB issue on the MAS website.
- Singapore Treasury bills (T-bills)
T-bills are short-term Singapore Government Securities, with 6-month and 1-year tenures. Instead of paying coupons, they’re sold at a discount and you receive the full face value at maturity. The difference is your return.
The minimum investment is S$1,000, and the yield is set at each auction. For example, the 6-month T-bill auctioned on 4 November 2026 had a cut-off yield of 1.86%. T-bills suit money you don’t need for 6 to 12 months, and you can apply with cash, SRS funds or your CPF Ordinary Account via CPFIS.
- Singapore Government Securities (SGS) bonds
SGS bonds are issued by the Singapore government, which has an AAA credit rating. The minimum investment is S$1,000, with tenures ranging from 2 to 50 years. They pay a fixed rate of interest every six months.
Check the latest SGS bonds on the MAS website.
Beyond government bonds, companies also issue bonds to retail investors from time to time. Azalea Asset Management’s Astrea private equity bonds are one example, though application windows for these offers are often short. You can also buy listed bonds on SGX through a brokerage account.
- Bond exchange traded funds (ETFs)
ETFs are funds that hold a basket of securities, typically to replicate the performance of an index. A bond ETF, such as the ABF Singapore Bond Index Fund or the Nikko AM SGD Investment Grade Corporate Bond ETF, holds many different investment grade bonds.
ETFs are listed on the stock exchange, so you can buy and sell them just like stocks. They’re also affordable, with a low minimum investment. You can even use your CPF money to buy approved bond ETFs.
- Bond unit trusts (mutual funds)
Just as ETFs give you exposure to a basket of bonds, so do unit trusts that invest in bonds. Unit trusts (also known as mutual funds) pool money from many investors and are run by a fund manager.
You can buy these unit trusts on your own or through a regular savings plan.
You can also get exposure to fixed income funds through insurers’ investment-linked policies (ILPs). However, if you want an insurance plan with low risk and modest returns, endowment plans may be a lower-cost option.
How much of your portfolio should you allocate to fixed income products?
The answer depends on your risk appetite, investment goals, available capital and age.
When to allocate more? If you’re risk-averse, you’ll want a bigger share of your portfolio in fixed income. The same applies as you get older. For example, if you’re approaching retirement, time is no longer on your side and you may not be able to afford losing your capital.
When to allocate less? If you’re young, you have a long investment horizon. This lets you take on more risk, because your portfolio has time to ride out market volatility, and stock markets have historically gone up over the long term.
Taking on some risk when you’re young gives your portfolio the chance to earn higher returns over time. This could mean investing in stocks, ETFs, unit trusts, and perhaps a small portion in more speculative assets.
If you need help deciding how much to allocate to fixed income, consider a robo-advisor. Robo-advisors build a diversified portfolio based on your risk profile and investment goals, typically mixing equities and fixed income. Platforms such as StashAway do this automatically and rebalance for you.
For example, an investor with a lower risk appetite might get a portfolio with 60% fixed income and 40% equities. An investor willing to take on more risk might go with 80% equities and 20% fixed income.
Instead of sitting on the fence, start growing your investment capital with a robo-advisor today.
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About the author
Ching Sue Mae
A flat white, an adventure-filled travel and a good workout is her fuel. Sue Mae enjoys sharing knowledge on personal finance while chasing the dream of financial independence.
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.