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

The Federal Reserve has lowered its key interest rate to a target range of 3.50%–3.75%, marking its third cut in 2025.

If you are seeking to earn yields on your idle cash while interest rates remain above 3%, continue reading to discover the distinctions between money market funds, bank fixed deposits, and Singapore T-bills. Find out which option is most suitable for you.

Overview of best fixed deposit rates in Singapore (Dec 2025)

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A fixed deposit is an interest-bearing bank account that has a pre-set maturity date, meaning it can only be withdrawn after the predetermined set duration.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cash in the account will earn an interest rate of 3.40% per annum, pro-rata to 3 months’ value and can only be withdrawn after 3 months, subject to bank deposit withdrawal policy and penalty.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 two different types of T-bills issued by the government are 6 months and 1 year, respectively. 

Latest market commentary (Dec 2025)

The Federal Reserve delivered its third rate cut of 2025 at the December meeting, lowering the federal funds target range to 3.50%–3.75%. The decision was not unanimous, with three dissenting votes underscoring the committee’s divisions over the pace of easing. 

What made this meeting unusual was the backdrop of incomplete data. The prolonged US government shutdown delayed key releases, leaving the Fed to act with less visibility than usual. September PCE data, only published in early December, showed core inflation at 2.8% year‑on‑year, consistent with gradual disinflation. But the absence of timely October and November prints meant policymakers were effectively steering without a full dashboard. This lack of clarity amplified internal debate and reinforced the cautious tone in the minutes. Policymakers balanced evidence of cooling inflation against signs of a softer labor market, while maintaining language that inflation remains “somewhat elevated.” This signals that while the Fed is willing to ease, it is not prepared to commit to a rapid sequence of cuts.

Following three cuts during 2025, the fed funds rate will enter 2026 at the level of 3.50%–3.75%. The first policy meeting by the Fed will be on 28 January 2026. As many as three quarters of traders think the institute will stay put for any rate decisions, while about 25% of them expect the Fed to deliver another 25‑basis‑point cut, according to data released by CME FedWatch as of 16 December.

This split in market expectations reflects both the progress made on disinflation and the lingering uncertainty caused by delayed government data releases, leaving investors cautious about how quickly the Fed will move in the new year. For cash investors, the December cut means incremental yield compression across operating cash vehicles.

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 5 Dec 2025 now range from 0.85% to 1.71% p.a. for SGD cash management funds and 3.86% to 4.02% 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? The LionGlobal SGD Enhanced Liquidity Fund, with a net yield of 1.71% p.a.**, could be a great addition depending on your risk tolerance and investment objectives. You can add it to your portfolio by following these steps. 

Depending on your investment objectives and risk tolerance, Cash Smart Secure is another good option, with the latest net yield of 1.7% p.a***. Cash Smart Enhanced is available as well for investors who are willing to take more risk relative to the Cash Smart Secure solution. Critically, Endowus offers our cash management solutions at fees of 0.15%, making our offerings highly competitive for your low-risk investments. This is on top of 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, annualized 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 5 Dec 2025. Net yield after deducting fund-level fees and Endowus access fee, and adding back rebates. Note: The Endowus Fee is subject to GST from 1 April 2023 onwards. Source: Endowus Research, Fullerton Fund Management.

***Latest available data as of 5 Dec 2025. Net yield after deducting fund-level fees and Endowus access fee, and adding back rebates. Note: The Endowus Fee is subject to GST from 1 April 2023 onwards. Source: Endowus Research, Fullerton Fund Management, Lion Global Investors.