--- title: Why Your CPF Now Pays More Than T-Bills and Savings Bonds in 2026 description: CPF interest rates now beat Singapore T-bills and SSBs in 2026, after a shock US jobs report and a divided Fed reshaped short-term yields. image: https://www.thefinancialcoconut.com/hubfs/cpf.webp --- [Skip to content](https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026#main-content) [![Full\_COlour](https://www.thefinancialcoconut.com/hs-fs/hubfs/Full_COlour.png?width=456&height=80&name=Full_COlour.png)](https://www.thefinancialcoconut.com/) - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) Open main navigation Close main navigation - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) - [Contact us](https://www.thefinancialcoconut.com/contact-us) [Contact us](https://www.thefinancialcoconut.com/contact-us) Aug 25, 2026, 2:26:34 PM # Why Your CPF Now Pays More Than T-Bills and Savings Bonds in 2026 ![Picture of The Financial Coconut](https://www.thefinancialcoconut.com/hs-fs/hubfs/Square%20(2)-3.png?width=50&name=Square%20(2)-3.png) [The Financial Coconut](https://www.thefinancialcoconut.com/blog/author/the-financial-coconut) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [![Follow The Financial Coconut](https://no-cache.hubspot.com/cta/default/46975693/interactive-182431637553.png)](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/redirect?encryptedPayload=AVxigLL2CjCe42iR2RH2MpVX0Ej%2BKJQ%2F3A0Z7pXnUs35To%2Bo6nbKcpBVq9I98X5NUungVEwfs5YCKuM%2FaP97VxIITkTlihT57%2F%2F4XDW9rT3VR4MatSLDi%2BMU5mbQqihfX3LRRz83ij8K19OiD8UXy8sdct4t0Q%3D%3D&webInteractiveContentId=182431637553&portalId=46975693) Yes. As at August 2026, CPF's Ordinary Account pays 2.5% and its Special, MediSave and Retirement Accounts pay 4%, both ahead of the 6-month T-bill's 1.56% and the September Savings Bond's 1.52% first-year rate. A wobblier US economy and an undecided Fed are the reason "T-bill and chill" no longer looks like the easy win it was. ## What's happened to T-bill and SSB yields? Singapore's short-term "risk-free" instruments have quietly lost their shine. The 6-month T-bill cut-off yield came in at 1.56% at the 13 August 2026 auction, down from 1.59% at the 30 July auction and its first decline since 18 June. The Singapore Savings Bond (SSB) issued in September 2026 offers just 1.52% in its first year, averaging 2.25% a year if held for the full decade, with applications for that tranche closing on 26 August at 9pm. Fixed deposits are holding up marginally better, with banks offering roughly 1.65% for six months and 1.70% for nine to twelve months as at mid-August, but the direction across the board is down, not up. ![singapore-money-in-the-black-wallet-2026-03-16-03-26-32-utc](https://www.thefinancialcoconut.com/hs-fs/hubfs/singapore-money-in-the-black-wallet-2026-03-16-03-26-32-utc.jpg?width=777&height=518&name=singapore-money-in-the-black-wallet-2026-03-16-03-26-32-utc.jpg) ## Why is the US Fed moving Singapore's rates? Singapore's short-term rates track global liquidity conditions closely, and the US Federal Reserve is the biggest single influence on that. On 29 July 2026, the Fed held its benchmark rate steady at 3.50% to 3.75%, but the vote was unusually split: three officials actually pushed for a hike rather than a cut, reflecting lingering concern about inflation. That hawkish tilt did not last. On 7 August, the US jobs report showed nonfarm payrolls shrinking by roughly 23,000, an unexpected reversal after months of growth. Hike odds for the Fed's next meeting on 15 to 16 September 2026 tumbled almost immediately, and rate-cut speculation crept back in. For Singapore, this kind of on-again, off-again signalling from Washington shows up fastest in T-bill and SSB pricing, since both are anchored to where the market expects rates to head next. ## How does CPF compare right now? For the quarter running 1 July to 30 September 2026, CPF's base rates are unchanged: 2.5% on the Ordinary Account (OA), and 4% on the Special, MediSave and Retirement Accounts (SMRA), with the HDB concessionary loan rate at 2.6%. Crucially, the government has extended the 4% floor on SMRA monies for another year, through to 31 December 2026, so that rate will not fall even if market benchmarks slide further. On top of the base rates, members under 55 earn an extra 1% on the first $60,000 of combined balances (capped at $20,000 from the OA), while those 55 and older earn an extra 2% on the first $30,000 and a further 1% on the next $30,000. That pushes effective yields on a meaningful chunk of CPF savings well above what T-bills or SSBs are currently offering, with a government guarantee behind it. ![cpf](https://www.thefinancialcoconut.com/hs-fs/hubfs/cpf.webp?width=777&height=518&name=cpf.webp) ## So should you ditch T-bills and SSBs for CPF? Not automatically. CPF savings, particularly in the SMRA, are far less liquid than a T-bill or SSB and are meant for retirement and housing, not short-term cash needs. If you genuinely need funds within six to twelve months, T-bills, SSBs or fixed deposits still make sense purely on flexibility, even at lower yields. But if you have idle cash you will not touch before 55 or 65, and you are comparing purely on yield, the math has shifted. Voluntary CPF top-ups, particularly into the SA or MA via Retirement Sum Topping-Up, now clear T-bill and SSB returns by a wide margin, before even counting extra interest. Higher-risk alternatives like S-REITs, some yielding in the range of 5% to 6%, offer more income potential but carry real market risk that CPF, T-bills and SSBs simply do not. This is exactly the kind of yield-versus-liquidity trade-off The Financial Coconut's [Chills 39 episode on investing CPF savings with Endowus](https://thefinancialcoconut.com/tfc-chills/cpf-investing-endowus/) digs into, alongside TFC's own breakdown of [how T-bills stack up against other short-term investments](https://www.thefinancialcoconut.com/blog/comparing-tbill-to-other-investments). ## In summary A divided Fed and a shock US jobs slump have pushed Singapore's T-bill and SSB yields down to 1.56% and 1.52% respectively, while CPF's OA and SMRA rates have stayed put at 2.5% and 4%, with the 4% floor locked in until end-2026. For cash you can afford to lock away, CPF now quietly out-earns the instruments Singaporeans have leaned on for years. For everything else, the usual trade-offs around liquidity still apply. For more breakdowns on how global rate moves affect your money in Singapore, follow The Financial Coconut Podcast and join the community via [linkin.bio/thefinancialcoconut](https://linkin.bio/thefinancialcoconut). ## FAQ 1. **Is CPF interest higher than T-bills in 2026?** Yes. As at the third quarter of 2026, CPF's Ordinary Account pays 2.5% and its Special, MediSave and Retirement Accounts pay 4%, both above the 6-month T-bill's 1.56% cut-off yield from the 13 August auction. 2. **Why are Singapore T-bill yields falling in 2026?** T-bill yields track expectations for US Federal Reserve policy. A weak July 2026 US jobs report revived speculation that the Fed could cut rates at its September meeting, which has pulled Singapore's short-term yields, including T-bills and SSBs, lower. 3. **Will CPF's 4% interest rate floor change soon?** The government has extended the 4% floor on Special, MediSave and Retirement Account monies through 31 December 2026, so it will not fall before then even if market-pegged rates dip further. 4. **Should I still buy Singapore Savings Bonds if the return is only 1.52%?** It depends on your goal. SSBs remain useful for short-term cash you may need within a few years, since you can redeem early without penalty. For money you will not touch before retirement, CPF's current rates offer a higher, government-backed return. #### Source consulted - CPFB, [CPF interest rates from 1 July to 30 September 2026](https://www.cpf.gov.sg/member/infohub/news/news-releases/cpf-interest-rates-from-1-july-to-30-september-2026) - CPFB, [Government extends 4% interest rate floor on Special, MediSave and Retirement Account monies until 31 December 2026](https://www.cpf.gov.sg/member/infohub/news/news-releases/government-extends-4-per-cent-interest-rate-floor-on-special-medisave-and-retirement-account-monies-until-31-december-2026) - Federal Reserve Board, [Implementation Note issued 29 July 2026](https://www.federalreserve.gov/newsevents/pressreleases/monetary20260729a1.htm) - Bloomberg, [Fed Holds Rates Steady as Three Officials Dissent on Quarter-Point Increase](https://www.bloomberg.com/news/articles/2026-07-29/key-takeaways-from-fed-decision-to-hold-rates-steady) - CNBC, [Fed rate decision July 2026: Divided Fed holds interest rates steady](https://www.cnbc.com/2026/07/29/fed-rate-decision-july-2026.html) - NBC News, [July jobs report: US economy shed 23,000 jobs, a sudden reversal](https://www.nbcnews.com/business/economy/july-2026-jobs-report-rcna591138) - CNBC, [Odds the Fed will hike in September tumble following big July jobs miss](https://www.cnbc.com/2026/08/07/odds-the-fed-hikes-in-september-tumble-following-big-july-jobs-miss.html) - Growbeansprout, [T-bill yield dips to 1.56% as demand rises in latest 13 August auction](https://growbeansprout.com/t-bill-allotment-13-aug-2026) - TheFinance.sg, [Singapore Savings Bonds (SSB) Sep 2026: Year 1 (1.52%), 10-Year (2.25%) & Results](https://thefinance.sg/2026/08/05/singapore-savings-bonds-ssb-sep-2026-year-1-1-52-10-year-2-25-results/) Let us know what you think about this topic, and what do you want to hear next. You can now be our community contributor and make a [pitch ](https://thefinancialcoconut.com/contact/)to have your favourite personality be on our show. Join our [community group](https://linkin.bio/thefinancialcoconut/?fbclid=PAZXh0bgNhZW0CMTEAAaY2-JSYItZawSUnNP4YhAicLp0H2wXwx8EBmQgbzOJrjA6YRiPWXtFDSH4_aem_t1DMRY5jrSAapreaSX9ntw) and drop us your insights on this topic.   ### Stay ahead in your financial journey! Sign up for our newsletter to receive insights, tips, and strategies from The Financial Coconut Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/AI-Generated%20Media/Images/businesses%20needing%20to%20adopt%20AI%20automations.jpeg?height=200&name=businesses%20needing%20to%20adopt%20AI%20automations.jpeg)](https://www.thefinancialcoconut.com/blog/ai-ceos-slowdown-pace-the-frontier-investors-2026) ## [AI Slowdown: Why Are AI CEOs Suddenly Asking to Slow Down, and What Are Investors Not Seeing?](https://www.thefinancialcoconut.com/blog/ai-ceos-slowdown-pace-the-frontier-investors-2026) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/the-asia-map-on-a-globe-beckons-travelers-to-chart-2026-03-20-05-42-05-utc.jpg?height=200&name=the-asia-map-on-a-globe-beckons-travelers-to-chart-2026-03-20-05-42-05-utc.jpg)](https://www.thefinancialcoconut.com/blog/best-travel-cards-singapore-september-2026) ## [Best Travel Cards in Singapore (September 2026): Is Trust Bank's New Miles Mode Worth It?](https://www.thefinancialcoconut.com/blog/best-travel-cards-singapore-september-2026) [![](https://cdn.getyourguide.com/image/format=avif%2Cfit=cover%2Cgravity=auto%2Cquality=60/dam/japan-725347-Header%20Mobile.jpg)](https://www.thefinancialcoconut.com/blog/japan-travel-costs-2026-singaporeans) ## [How Much More Will a Japan Trip Cost Singaporeans in 2026?](https://www.thefinancialcoconut.com/blog/japan-travel-costs-2026-singaporeans) [![](https://focusmalaysia.my/wp-content/uploads/Screenshot-2022-12-31-at-14.00.26.png)](https://www.thefinancialcoconut.com/blog/singaporeans-with-business-interests-in-malaysia-what-this-weeks-tuition-centre-reversal-actually-changes) ## [Singaporeans With Business Interests in Malaysia: What This Week's Tuition Centre Reversal Actually Changes](https://www.thefinancialcoconut.com/blog/singaporeans-with-business-interests-in-malaysia-what-this-weeks-tuition-centre-reversal-actually-changes) ## Let us know what you think of this post ## Related posts [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/senior-old-man-and-woman-playing-chess-game-on-che-2026-03-19-23-09-26-utc.jpg?height=200&name=senior-old-man-and-woman-playing-chess-game-on-che-2026-03-19-23-09-26-utc.jpg)](https://www.thefinancialcoconut.com/blog/my-legacy-deleting-records-4-january-2027) [Invest](https://www.thefinancialcoconut.com/blog/tag/invest), [Personal Finance](https://www.thefinancialcoconut.com/blog/tag/personal-finance), [lifestyle](https://www.thefinancialcoconut.com/blog/tag/lifestyle), [Legacy Planning](https://www.thefinancialcoconut.com/blog/tag/legacy-planning) ## [My Legacy Is Deleting Your Stored Records on 4 January 2027: What Should You Do?](https://www.thefinancialcoconut.com/blog/my-legacy-deleting-records-4-january-2027) From 4 January 2027, My Legacy will permanently delete every piece of personal information, funeral... [Read more](https://www.thefinancialcoconut.com/blog/my-legacy-deleting-records-4-january-2027) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/AI-Generated%20Media/Images/An%20image%20of%20a%20modern%20malay%20man%20moving%20to%20Johor%20Bahru%20with%20his%20wife%20and%202%20children%20while%20maintaining%20his%20work%20life%20in%20Singapore.jpeg?height=200&name=An%20image%20of%20a%20modern%20malay%20man%20moving%20to%20Johor%20Bahru%20with%20his%20wife%20and%202%20children%20while%20maintaining%20his%20work%20life%20in%20Singapore.jpeg)](https://www.thefinancialcoconut.com/blog/chillswithtfc-185) [show](https://www.thefinancialcoconut.com/blog/tag/show), [Chills with TFC](https://www.thefinancialcoconut.com/blog/tag/chills-with-tfc) ## [Mastering Rebasing in Johor Bahru with 3 Kids - Uncover Hidden Opportunities \[Chills 185\]](https://www.thefinancialcoconut.com/blog/chillswithtfc-185) In this follow-up to our viral episode with Hossan Leong, we dive deeper into the realities of... [Read more](https://www.thefinancialcoconut.com/blog/chillswithtfc-185) [![](https://media.licdn.com/dms/image/v2/D5622AQEo9zUB__1N7w/feedshare-shrink_2048_1536/feedshare-shrink_2048_1536/0/1712706753490?e=1751500800&v=beta&t=q6ObwioYm4kZTxixSPkpt74IY46uY21JCk_VSmuJuk0)](https://www.thefinancialcoconut.com/blog/reggie-koh-planted-roots-in-kl) [Personal Finance](https://www.thefinancialcoconut.com/blog/tag/personal-finance) ## [Finding Ground: Why This Singaporean Entrepreneur Planted Roots in KL](https://www.thefinancialcoconut.com/blog/reggie-koh-planted-roots-in-kl) "At that point in time, because I failed my business then — there wasn’t that safety net for me. So... [Read more](https://www.thefinancialcoconut.com/blog/reggie-koh-planted-roots-in-kl) [![Logo\_White](https://www.thefinancialcoconut.com/hs-fs/hubfs/Logo_White.png?width=111&height=69&name=Logo_White.png "Logo_White")](https://www.thefinancialcoconut.com/) [facebook-f icon](https://www.facebook.com/financialcoconut/) [linkedin-in icon](https://sg.linkedin.com/company/the-financial-coconut) [TikTok icon](https://www.tiktok.com/@thefinancialcoconut?lang=en) [instagram icon](https://www.instagram.com/thefinancialcoconut/) [Follow us on Facebook](https://www.youtube.com/channel/UCREEmSahtQyTBjJudI6kgmg) [Follow us on Facebook](https://open.spotify.com/show/6ndJZx2bk8jYgQHAXIwg1C) [Follow us on Facebook](https://podcasts.apple.com/sg/podcast/the-financial-coconut-podcast/id1487004505) 6 Shenton Way, OUE Downtown 2, #07-13, Singapore 068809 Copyright © 2025 - - [About Us](https://www.thefinancialcoconut.com/about-us) - [Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) - [Blog](https://www.thefinancialcoconut.com/blog) - - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Business](https://www.thefinancialcoconut.com/business) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - - [Contact Us](https://www.thefinancialcoconut.com/contact-us) - [Work With Us](https://www.thefinancialcoconut.com/workwithus) - [Ask Our Experts](https://www.thefinancialcoconut.com/ask-us) - [Make Your Pitch](https://www.thefinancialcoconut.com/make-your-pitch) - [Service and User Agreement](https://www.thefinancialcoconut.com/service-agreement) - [Privacy Policy](https://www.thefinancialcoconut.com/privacy-policy) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "The Financial Coconut", "url" : "https://www.thefinancialcoconut.com/blog/author/the-financial-coconut" }, "dateModified" : "2026-08-25T06:41:24.352Z", "datePublished" : "2026-08-25T06:26:34.000Z", "headline" : "Why Your CPF Now Pays More Than T-Bills and Savings Bonds in 2026", "image" : [ "https://www.thefinancialcoconut.com/hubfs/cpf.webp" ], "mainEntityOfPage" : { "@id" : "https://www.thefinancialcoconut.com/blog/why-your-cpf-now-pays-more-than-t-bills-and-savings-bonds-in-2026", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.thefinancialcoconut.com/hubfs/Full_COlour-2.png" }, "name" : "The Financial Coconut" } } ```