Singapore fixed deposit and money market funds (Aug 2026)

Best options to grow your short-term cash savings in Singapore

The Federal Reserve’s target range for its key interest rate is currently at 3.50%–3.75%. 

If you are seeking to earn yields on your idle cash, find out which type of short-term product—money market funds, bank fixed deposits, and Singapore T-bills—is most suitable for you.

Overview of best fixed deposit rates in Singapore (Aug 2026)

Overview of yields earned on money market funds available on Endowus

What is a money market fund?

A money market fund is a mutual fund that invests in high-quality, short-term debt instruments and cash equivalents. These investments typically include Treasury bills (T-bills), commercial paper, and certificates of deposit (CDs), which are known for their liquidity and low risk. Money market funds are designed to offer investors a relatively low-risk place to invest easily accessible cash while earning a modest return. 

What are fixed deposits and what do the rates mean?

A fixed deposit is an interest-bearing bank account that has a pre-set maturity date, meaning it can only be withdrawn after the predetermined set duration. For instance, if the fixed deposit rate in Singapore is stipulated to be 3.40% for a period of 3 months, it means that the deposited cash in the account will earn an interest rate of 3.40% per annum, pro-rata to 3 months’ value and can only be withdrawn after 3 months, subject to bank deposit withdrawal policy and penalty.

What are Singapore T-bills?

Singapore Treasury bills (T-bills) are short-term Singapore Government Securities (SGS) which are sold for less than their nominal or face value. When T-bills mature, investors receive the full face value, earning the difference as interest (ie. T-bills interest rate). The Singapore government issues T-bills with two different maturities—6 months and 1 year.

Latest market commentary (Aug 2026)

In July, non-farm payrolls unexpectedly fell by 23,000, against a consensus for an 83,000 gain, while June's print was revised down to just 20,000 and May's to 63,000—a combined downgrade of 103,000. Unemployment actually dropped to 4.1%, but this is seen as a reflection  of more people leaving the labour force. 

The Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, eased to 3.7% year-on-year in June, down from May's 4.1%, as a brief US-Iran ceasefire pulled energy prices lower. Core PCE, which excludes food and energy, held at 3.3% year-on-year—still well above the Fed's 2% target. July's PCE data, due 26 August, will likely show whether the softening continued even as oil prices resumed climbing through the month after low-intensity hostilities resumed. While full out war is not the base case, a complete resolution also appears to be out of reach at this stage. 

At its 28–29 July meeting, the Federal Open Market Committee (FOMC) held rates at 3.50%–3.75% by a 9–3 vote. Cleveland's Beth Hammack, Minneapolis's Neel Kashkari and Dallas's Lorie Logan all dissented in favour of a quarter-point hike. The minutes, released on 19 August, showed the hawkish tilt ran wider than the three dissents alone: "Most participants anticipated that inflation would step down over the rest of the year as the effects of tariffs and earlier energy price increases wane, but many participants noted the possibility that inflation might be more persistently elevated." This is consistent with the data showing persistent levels of above-target core inflation. 

Market pricing has swung with the data. According to CME Group's FedWatch tool, the odds of a hike at the Fed's 15–16 September meeting stood near 65% in the days right after the July decision, before tumbling toward one-in-three as the weak July jobs report landed, and have held near 35% since the minutes were released on 19 August — the same reading (34.6%) implies a 68.4% chance of a hike by December and 82.2% by April 2027. 

Chair Kevin Warsh will deliver his first keynote as Fed Chair at the Kansas City Fed's Jackson Hole symposium, running 27–29 August, three weeks ahead of the September decision, though he has said the speech will focus on longer-term structural questions rather than near-term policy signals.

Money market funds in Singapore: What are your possible next moves?

Depending on your risk tolerance and investment objectives, a list of cash management or liquidity funds is available on our Fund Smart platform for you to earn more on the value of your cash. Or, you can consider our diversified Cash Smart Portfolios that allow you to earn yields. Either way, there are no penalties on fund or portfolio redemptions.

More importantly, enjoy daily liquidity for full flexibility. The money market funds on the Endowus platform are well diversified and enable you to take advantage of high yields in the current environment while minimising concentration risks to single issuers.

We have these solutions available in SGD, USD, and other major currencies. With Endowus, you can invest in funds and advised portfolios using Cash, CPF, or Supplementary Retirement Scheme (SRS) savings. Endowus also has corporate cash solutions, which you can find out more about here.

Net yields calculated with latest available data as of 31 July 2026 now range from 0.84% to 2.15% p.a. for SGD cash management funds and 3.51% to 3.76% p.a. for USD cash funds available on the Endowus platform.

• No penalties on fund or portfolio redemptions. Enjoy daily liquidity for full flexibility. 
• Well-diversified, minimising concentration risks to single issuers

Read more: What is a money market fund?

These solutions are available in SGD, USD, and other major currencies. With Endowus, you can invest in funds and advised portfolios using Cash, CPF, or SRS (Supplementary Retirement Scheme) savings. Endowus also has corporate cash solutions, which you can find out more about here.

Cash management solutions on the Endowus platform

Here are the key money market or liquidity funds available on the Endowus platform:

• Fullerton SGD Cash Fund
• LionGlobal SGD Money Market Fund
• United SGD Money Market Fund
• LionGlobal SGD Enhanced Liquidity Fund* (*ultra-short duration bond fund)
• LionGlobal SGD Liquidity Fund
• Fullerton USD Cash Fund 
• Amundi Cash USD Fund

As with all investments, investors are reminded that putting your money into money market or liquidity funds come with some degree of risk, and that the capital and yield is not guaranteed. If you do not wish to be subject to the risk of capital loss, we recommend you to consider capital-protected vehicles such as bank deposits, or government-backed instruments such as Singapore Savings Bonds (SSBs) and Treasury bills (T-bills). To find out more about each fund’s historical track record, click on the fund names above.

Bond yields vs returns — what’s the difference?

Many of the cash management funds highlighted above invest primarily in fixed-income securities, which include bonds. 

Simply put, fixed-income securities are debt instruments. An investor lends money to the issuer (basically, the borrower), and in return the investor receives coupons — or interest payments — on a regular basis. Entities that issue bonds include governments and corporations.

By investing your money in a fund that includes fixed-income securities, you are essentially lending your money to the issuers that the fund management company has chosen based on its analysis.

Here are quick definitions of yields and returns in this context:

• Yields: These refer to the payouts — that is, the interest payments — generated by a fixed-income security. Yields are based on the total annualised future returns that you would have received by the end of the security’s tenor (i.e. reflecting all the payments you would’ve received by maturity).
• Returns: These are generated by the increase or decrease in the value of a fixed-income security during the lifespan of the security. Returns are based on what you would have already earned up to the present day if you were to sell the security today.

A fundamental difference between yields and returns lies in the timeframe.

To illustrate this, let’s use a simple example of a one-year bond. You invest $1,000, which is the principal amount, in the bond of Company X and the company promises to repay this sum plus 5% interest (yield) at the end of one year. After a year, you would have earned a 5% return in total. 

In other words, as long as (i) you hold your fixed-income security until it matures, and (ii) the borrower does not default on the debt — the yield is very likely to be the total return you will earn. This is why yields are important in assessing the implied future return of cash management funds (and even longer-duration fixed-income funds).

This scenario, of the yield equating to the return, changes when you choose to trade the bond. 

Let’s say the same Company X runs into financial difficulties. You’re not willing to stomach the increased risk of the company failing to repay the principal by the maturity date or missing the interest payment. Therefore, you decide to sell your bond investment in the secondary market. There, you are quoted a trading price that will mean you sell the bond at less than the principal of $1,000. If we assume this sum to be $900, that means you incur a loss of $100 or a return of -10%.

In other words:

• You would care about the “return” if you trade the fixed-income security before it matures.
• The value of fixed-income securities is subject to various factors, including the financials of the companies, or even the broader market environment. Put simply, this value is what you will get if you choose to sell the security to a third party.
• This value changes on a daily basis, and is reflected as the returns.

Comparing fixed deposits, T-bills, SSBs, and cash management funds

The world of cash management spans a wide variety of yield enhancement products. Investors in Singapore who are looking for a higher interest rate may turn to fixed deposits from Singapore banks, Singapore government Treasury bills (T-bills), Singapore Savings Bonds (SSBs), or unit trusts, for example.

However, it is important for investors to have a clear understanding of the pros and cons of each of these instruments — they often come with trade-offs involving yield, lock-ups, duration, minimum or maximum investment amounts, and transaction fees. 

And if you’re looking to invest your CPF Ordinary Account (OA) savings, bear in mind that not all cash management products are available for OA investments.

The table below shows key details about Singapore fixed deposits, T-bills, SSBs, and cash management unit trusts on the Endowus platform, including the latest available information on their yields (as of the time of writing). For fixed deposits, please note that the range of current yields should be taken as a guide only, given that fixed deposit interest rates in Singapore change frequently.

The smart and flexible way to earn more on your cash

Looking to build your investment portfolio? You can potentially  add The LionGlobal SGD Enhanced Liquidity Fund, with a net yield of 1.37% p.a.**, subject to your risk tolerance and investment objectives, by following these steps. 

Based on your investment objectives and risk tolerance, Cash Smart Secure, which currently offers a 1.2%*** net yield, can also be attractive. Finally, Cash Smart Enhanced is available for investors who are willing to take additional risk relative to the Cash Smart Secure solution. 

Endowus charges 0.15% for our cash management solutions, a competitive fee for your low-risk investments. This is in addition to our longstanding practice to rebate any trailer fees back to our clients. Learn more about our Cash Smart offerings here.

Make your cash work smarter for you. If you have money set aside for an upcoming expense, earn higher returns on it instead of letting it sit idle in your current or savings account. To get started with Endowus, click here. 

Read more:

• How to navigate the T-bill yield drop in Singapore
• Should you invest your CPF money in T-bills?

*For money market funds, yield refers to the 7-Day yield, calculated as the change in value (NAV plus reinvested distributions) over the trailing 7 days and annualized on a compounded basis. It is a quick, short-term measure that shows what the fund has earned recently, annualised to give investors a percentage return for the year. For short-duration fixed income funds, yield refers to the Yield to Maturity (YTM), which estimates the total annual return an investor would earn if all underlying bonds in the fund are held to maturity.
**As of 31 July 2026. Net yield after deducting fund-level fees and Endowus access fee, and adding back rebates. Note: The Endowus Fee is subject to GST. Source: Endowus Research, Fullerton Fund Management.

***Latest available data as of 31 July 2026. Net yield after deducting fund-level fees and Endowus access fee, and adding back rebates. Note: The Endowus Fee is subject to GST. Source: Endowus Research, Fullerton Fund Management, Lion Global Investors.