Rising inflation and market volatility over recent years are forcing both new and experienced investors to seek out low-risk investments. Many are turning to safe investment opportunities in Singapore that preserve capital while offering reliable returns.
What is it that attracts investors to the city-state, you may ask!
It’s a mix of multiple factors, including Singapore’s stable economy, its status as a global financial hub, robust regulatory frameworks, and AAA credit ratings from major international rating agencies.
This comprehensive guide explores the best low-risk investment options available in Singapore for 2025.
Read on for detailed insights into returns, features, requirements, and potential downsides of certain investment vehicles that will help you make informed financial decisions.
Comparison of Best Low-Risk Investments
Here's a quick overview of Singapore's safest investment options and their key features:
Note: Returns are indicative and subject to change.
If you’re an accredited or institutional investor willing to take on higher risk for significantly higher returns, you should consider Kilde. It is one of the best private investment options in Singapore, with lock-in periods ranging from 3 to 36 months.
Kilde facilitates managed, secure investments in private credit. Its rigorous due diligence process and risk management strategies have achieved 10%+ net returns annually (averaging 12.6% in the last year).
However, you should note that private investment will always be more risky than government-backed investment options, fixed deposits, and savings accounts.
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Types of Safe Investments in Singapore
Singapore offers many investment options with different levels of protection. Let's understand how these investments are secured in three broad categories.
- Government-backed investments, known as Singapore Government Securities (SGS).
- Singapore Deposit Insurance Corporation (SDIC) insured investments.
- Other investment options.
Singapore Government Securities (SGS)
The Singapore government issues a range of debt securities known as Singapore Government Securities (SGS). They are among the best safe investments in the world, backed by the full faith and credit of the Singapore government.
Investors seeking a low risk investment in Singapore with stable returns often choose SGS.
This category includes multiple investment instruments:
- SGS Bonds (including Market Development and Infrastructure).
- Singapore Savings Bonds (SSB).
- Treasury Bills (T-Bills).
Each type of SGS serves a different purpose, which we will outline in later sections.
Singapore Deposit Insurance Corporation (SDIC) Insured Investments
The Singapore Deposit Insurance Corporation (SDIC) maintains investor confidence in the country's financial system. It insures up to S$100,000 per non-bank depositor per SDIC member scheme.
The SDIC covers multiple deposit products, including:
- Savings accounts.
- Fixed deposit accounts.
- Current accounts.
- Money placed under the Supplementary Retirement Scheme (SRS).
All full banks and finance companies are scheme members, including local banks (DBS, OCBC, UOB), Qualifying Full Banks (QFBs), and foreign bank branches.
Covered banks include:
- Bank of Singapore
- Citibank
- ICICI Bank
- DBS Bank
- UOB
- OCBC
- Maybank
- CIMB
- Bank of India
The SDIC does not cover foreign currency deposits, structured deposits, and other investment products such as unit trusts and shares.
Other Investment Options
Beyond government-guaranteed and SDIC-protected investments, Singapore offers additional investment vehicles that provide potentially higher returns with varying risk levels.
These include:
- Insurance savings plans.
- Endowment plans.
- Cash management accounts.
We'll explore each of these options in detail throughout this guide.
Singapore Government Securities Bonds (SGS Bonds)
As mentioned earlier, Singapore Government Securities (SGS) are government-guaranteed, highly safe investments.
SGS bonds, a subset of SGS, are medium to long-term securities.
They have tenures ranging from 2 to 50 years and pay bondholders a semi-annual coupon with a fixed interest rate.
SGS bonds are essentially a guaranteed return investment in Singapore with a predictable income stream.
If you invest as an individual, you will not be taxed on the interest earned on SGS bonds. Additionally, you cannot redeem any of the 3 main types of SGS bonds early, but you can sell them in the secondary market.
Market Development SGS
These traditional bonds support the development of Singapore's debt market. They offer fixed interest payments every six months, with tenures ranging from 2 to 50 years.
Infrastructure SGS
The Singapore government issues these bonds to finance major infrastructure projects. They work like Market Development SGS but are specifically designed to support Singapore's long-term development.
Green SGS (Infrastructure)
The Green SGS bonds were launched in 2022 to fund environmentally friendly infrastructure projects in line with Singapore's sustainability goals.
They work like regular Infrastructure SGS in all other aspects.
Expected Returns and Risks
SGS bonds offer modest returns, typically between 2.5% and 3.5% annually, depending on prevailing market conditions and the bond's maturity date. Bonds with longer maturities generally offer higher interest rates to compensate investors for the increased time commitment.
While the returns may seem modest, they are the safest investment in Singapore as the Singapore government backs them.
Even though SGS Bonds are considered safe, it pays to be aware of the following risks:
- Interest Rate Risk: If interest rates rise after you purchase a bond, the value of your bond in the secondary market declines. That is because newer bonds will be issued with higher interest rates, making older bonds less attractive.
- Inflation Risk: If inflation rises faster than the interest rate on your bond, your returns may not keep pace with the rising cost of living. That means your investment may lose purchasing power over time.
How to Invest in SGS Bonds
There are three ways to buy SGS bonds:
- Through primary market auctions via participating banks, such as DBS Bank, OCBC Bank, and United Overseas Bank (UOB).
- Through securities brokers on the secondary market.
- Through bond ETFs listed on the Singapore Exchange (SGX).
Individuals can bid on SGS bonds at primary auctions via cash, Supplementary Retirement Scheme (SRS) funds, or CPF Investment Scheme (CPFIS) funds. Each type of application requires a different account.
The government distributes bonds to financial institutions for larger or specialized issues, like infrastructure bonds and Green SGS bonds. These institutions then allocate them to investors.
Minimum Investment Amount
Investment starts at SGD 1,000, with additional investments in multiples of SGD 1,000. This makes SGS bonds accessible to most investors seeking safe, stable returns.
Here you can exlpore upcoming auctions.
Singapore Savings Bonds (SSB)
The next type of SGS is Singapore Savings Bonds (SSBs). They offer a unique blend of safety and flexibility for investors seeking guaranteed returns.
Unlike traditional SGS bonds, SSBs let you withdraw your money at any time without penalties.
Features and Benefits
Here’s what makes SSBs stand out among the safest investments in Singapore:
- Government Guaranteed Investment: The Singapore Government backs these bonds fully, offering the same level of security as other government securities.
- Flexible Investment Horizon: SSBs have a 10-year maturity, but you can redeem them at any time with no penalties. You receive your redemption by the 2nd business day of the following month. This flexibility accommodates investors with different financial goals.
- Step-Up Interest Structure: The interest earned on SSBs increases over time to encourage long-term savings.
- No Capital Loss: SSBs are capital-guaranteed investments in Singapore. As long as you hold the bond until maturity, you will receive your principal back in full.
- Low Entry to Invest: You can start investing with just S$500, making SSBs even more accessible than SGBs.
Interest Rate Structure
SSB interest rates reward long-term holders. Rates start lower but go up the longer you hold the bond, for up to 10 years.
The Monetary Authority of Singapore (MAS) announces interest rates for each Savings Bond, as well as the returns over different holding periods. For example, the SSB issued in January 2025 ranges from a 2.76% interest rate in the first year to 2.91% in the tenth year.
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Treasury Bills (T-Bills)
The third kind of SGS is Treasury bills (T-bills). These are among the most popular low-risk investments in Singapore. These short-term government-backed securities offer attractive returns with shorter tenures than SGS bonds or SSBs.
Features
T-bills are typically issued with maturities of 6 months or 1 year.
Their interest payments work differently from regular bonds. You buy T-bills at a discount to their face value and receive the full face value at maturity. The difference between the two values represents your returns.
Let’s say you buy a T-bill with a face value of S$1000 for S$950. Your return is the S$50 difference between what you paid and what you will receive at maturity.
There are two kinds of T-bills:
- Six-month T-bills, which provide more frequent reinvestment opportunities with potentially higher yields.
- One-year T-bills, which typically offer slightly higher yields and security against future yield drops.
Investors can purchase T-bills at regular uniform-price auctions, with a minimum S$1,000 investment.
Current Yields
Yields for T-bills fluctuate with each new auction. Investors have the option of placing either competitive or non-competitive bids.
Non-competitive bids will get the same yield as the highest accepted yield of a successful competitive bid, also known as the cut-off yield.
For example, the most recent auction on 16th January closed with a 2.99% p.a. cut-off yield for a 6-month T-bill. In contrast, the 6-month T-bill auctioned on 18th July 2024 had a 3.64% cut-off yield.
T-bills attract investors due to their short tenures and generally higher yields than fixed deposits and other guaranteed return investments in Singapore.
Fixed Deposits (FDs)
Fixed deposits (FDs) are one of the most low-risk investments in Singapore. They offer guaranteed returns over a fixed period that typically exceed regular savings account rates.
FDs are a simple and secure way to grow your savings, which makes them ideal for conservative investors.
Best FD Rates in Singapore
Fixed deposit interest rates can vary based on the bank, minimum deposit amounts, and tenures.
Let’s take a look at the rates from Singapore’s top banks in January 2025.
Banks also run promotions with special rates for specific tenures and deposit amounts. Foreign currency fixed deposits might offer even higher rates, particularly for USD and AUD deposits.
Disclaimer: Interest rates are subject to change.
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Investment Safety
Investors consider fixed deposits (FDs) in Singapore to be very safe investments as they are backed by the Singapore Deposit Insurance Corporation (SDIC).
The SDIC insures up to S$100,000 per depositor across all scheme members. If a bank fails, your deposits are protected up to that amount. This guarantee applies to 91% of depositors.
Comparing Bank Offerings
Each bank structures its FD products differently. That’s why you must look at the following factors when comparing FDs for the best investment with guaranteed returns:
- Minimum deposit requirements.
- Interest payment frequency.
- Early withdrawal penalties.
- Tenure options.
- Auto-renewal terms.
High-Yield Savings Accounts
Competition among banks has led to high-yield savings accounts becoming a low-risk, high-return investment.
Banks reward higher balances and more transactions in these accounts with tiered bonus interest rates.
Top Saving Accounts Comparison
Singapore’s best high-yield savings accounts include:
- DBS Multiplier: 1.80% to 4.10% p.a. interest rate, subject to meeting certain requirements. No minimum deposit.
- OCBC 360: Base 0.05% p.a. interest rate and up to 7.65% p.a. on your first S$100,000, subject to meeting certain requirements. S$1,000 minimum deposit.
- UOB One Account: 0.05% to 6% p.a. interest rate, subject to meeting certain requirements. S$1,000 minimum deposit.
Maximum Returns
Most high-yield savings accounts have specific requirements that must be met before they receive higher interest rates.
That may include:
- Minimum monthly salary credit.
- Minimum card spending.
- Credit card bill payments.
- Investing in specific products.
- Maintaining a minimum account balance.
Your total interest rate builds up as you meet more conditions. That makes high-yield savings accounts an attractive, low-risk investment option for those managing daily finances.
Insurance Savings & Endowment Plans
Insurance savings plans are a type of life insurance policy that combines protection with savings. They offer a way to grow your wealth steadily while providing financial security for your loved ones in case of death or terminal illness.
These plans are best for those seeking a guaranteed return investment in Singapore with an added insurance benefit.
Insurance saving plans known as endowment plans offer shorter tenures. They are more suited to long-term financial goals such as funding education or planning for retirement.
How Insurance Savings Plans Work
You pay regular premiums into the plan, a portion of which goes towards the life insurance component while the rest is invested. The investments made are typically in low-risk assets like bonds and fixed-income securities that provide stable returns.
Many such plans are capital-guaranteed investments, where you get back 100% of your capital at maturity and earn more returns through bonuses or interest.
The Singlife Account, for instance, is a popular insurance savings plan in Singapore. It guarantees the capital amount while offering a 3% p.a. return on the first S$10,000, and a base 1% p.a. return on amounts up to S$100,000.
The life insurance part of the plan covers up to 105% of the account value. It is also one of the rare plans with no lock-in period.
Types of Insurance Savings Plans
There are two main categories of insurance saving plans.
Endowment Plans
These plans mature after a specific period (5, 10, or 20 years) and provide a lump sum payout at maturity. Some endowment plans offer guaranteed returns, while others participate in the insurer's profits for potentially higher returns.
For example, OCBC’s GREAT SP is a short-term endowment plan (24 months) with insurance coverage and a guaranteed return.
Whole Life Plans
These plans offer traditional life insurance coverage with an added cash value component that grows over time.
Benefits of Insurance Saving Plans
As a low-risk investment in Singapore, insurance saving plans offer multiple benefits:
- Guaranteed Capital: Many plans, though not all, offer capital guarantees upon maturity to ensure the return of the principal amount invested.
- Regular Premiums: Policyholders usually make regular premium payments over the policy term. Some insurance savings and endowment plans, however, have a single premium or terms for premium payments (3, 5, or 10 years).
- Potential Bonuses: In addition to guaranteed returns, insurers may give bonuses based on the performance of their participating funds.
- Insurance Protection: These plans provide coverage against unforeseen events, offering a safety net for beneficiaries together with savings growth.
- Flexibility: Some plans allow you to adjust your premiums or coverage based on changing needs. Review policies carefully, as early withdrawal can incur significant penalties in some cases.
- Tax Benefits: Savings insurance plans in Singapore may offer tax benefits under specific conditions, giving them an edge over other investment and savings products.
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Central Provident Fund (CPF) Top-Up
The Central Provident Fund (CPF) is a comprehensive saving system for Singapore citizens and permanent residents. It helps save for retirement by offering one of the safest investment returns in Singapore.
Depending on your age, CPF contribution rates can range from 12.5% to 37% of your monthly wages.
CPF contributions go to three different types of accounts:
- Ordinary Account (OA).
- MediSave Account (MA).
- Special Account (SA).
SA accounts are closed when you turn 55 and are replaced by Retirement Accounts (RAs).
A CPF account offers multiple benefits:
- Guaranteed 4% base interest rate. This can go up to 5% p.a. if you’re younger than 55 years and up to 6% p.a. if you’re 55 and older. Topping up your CPF results in higher monthly payouts.
- Under the Matched Retirement Savings Scheme (MRSS), the Singapore government matches every dollar of cash top-up made to your RA. From 2025 onwards, this can be up to $2,000 a year, with a $20,000 cap over your lifetime. This only applies if you have yet to meet the current Basic Retirement Sum (BRS).
- Tax relief of up to $16,000 total for cash top-ups made to yourself and your loved ones in each calendar year.
- You can invest your OA and SA savings in many investment vehicles, including buying a property or servicing a home loan.
Since CPF savings are strictly for retirement, there are withdrawal restrictions until you reach the eligible age.
Cash Management Accounts
Cash management accounts are a flexible way to manage your short-term funds while earning interest. These accounts make safe investments with your funds in money markets, short-term bonds, or similar low-risk instruments.
Cash management accounts typically offer:
- No lock-in periods.
- Low minimum investments.
- Next-day liquidity.
- Higher yields than regular savings accounts.
Interest rates on cash management accounts can vary significantly depending on the platform and prevailing market conditions.
Many platforms levy monthly fees or transaction fees for such accounts.
These factors make it prudent to compare rates and features carefully before choosing an account.
Regular Savings Plans (RSPs)
Regular Savings Plans (RSPs) are structured investment programs that help you invest small, fixed monthly amounts into various investment products.
That makes RSPs a great way to start investing with a low-risk investment strategy.
Here’s how RSPs help investors:
- Dollar-Cost Averaging: By investing regularly, you average out the cost of your investments over time and reduce the impact of market volatility.
- Accessibility: RSPs typically have low minimum investment amounts that make them more accessible.
- Diverse Options: You can typically choose from a range of unit trusts or ETFs that help diversify your investments.
RSPs are not entirely risk-free, however, and are subject to minor fees.
Kilde
When you think of the best safe investment in Singapore, think Kilde.
Kilde helps accredited individuals invest in private debt, which is typically available only to institutional investors.
The platform offers a unique and safe entry point into private credit by focusing on asset-backed private bonds issued by non-banking financial institutions (NBFIs) in the consumer and SME space.
Compared to traditional options like SSBs or T-Bills, Kilde delivers higher potential returns and flexibility.
- Higher Returns: While SSBs and T-Bills typically offer 2%–4% annual returns, Kilde delivers an average net return of 12.6% over the past 12 months, with historical net returns exceeding 10% annually.
- Short-Term Commitment: Investments range from 3 to 36 months, shorter than endowment plans or insurance savings products with lock-in periods of 5 to 15 years or more.
- Collateral-Backed Safety: Unlike equities or mutual funds, Kilde bonds are secured by collateral to mitigate risk while maintaining attractive yields.
- Uncorrelated to Public Markets: Similar to cash management accounts or CPF top-ups, private credit investments through Kilde are largely insulated from market volatility.
While Kilde focuses on high-quality loans with strong security, private debt investments inherently carry some level of risk. Kilde employs a rigorous due diligence process and risk management strategies to minimise these risks.
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Building Your Low-Risk Investment Strategy
Consider your personal financial goals, risk tolerance, and investment horizon when choosing the right safe investments in Singapore.
Here’s how you can match investment choices with your goals:
- Short-term savings: Consider T-bills and fixed deposits.
- Medium-term goals: Look into SSBs and insurance savings plans.
- Long-term planning: Explore CPF top-ups and endowment plans.
Here are some tips and strategies for low-risk investing:
- Prioritize Safety: Choose investments backed by strong institutions or collateral, such as government bonds, CPF top-ups, or asset-backed private credit like Kilde.
- Diversify Your Portfolio: Spread investments across various asset classes ( fixed deposits, savings bonds, cash management accounts) to minimize risk.
- Consider Liquidity: If you need access to your funds, opt for investments with flexible withdrawal options. Always keep some funds in high-yield savings accounts for emergencies.
- Focus on Returns vs. Risk: Instead of chasing high-yield, high-risk options, look for consistent returns even if they are lower.
- Stay Informed: Research market conditions, interest rates, and platform credentials before committing funds.
- Monitor and Rebalance: Regularly review your portfolio and rebalance it to maintain your desired asset allocation.
The safest investment strategy combines multiple instruments to balance guaranteed returns, liquidity needs, and investment timeframes.
*KILDE PTE LTD (“Kilde”) is incorporated in Singapore (registration no. 201929587K) is licenced and regulated by the Monetary Authority Singapore and holds a Capital Markets Services Licence (CMS101016) and an Exempted Financial Advisor License under the Financial Adviser Act. The information provided in this marketing material is intended for “accredited investors” and “institutional investors” (collectively “qualified persons”) only. This marketing material, and any information in this marketing material, or any documentation that Kilde provides in relation to this marketing material is provided without any representation or any kind of warranties whatsoever (whether express or implied by law).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
