Executive Summary
Singapore’s cash management landscape in 2026 has been fundamentally reshaped by a cycle of Monetary Authority of Singapore (MAS) policy easings, compressed T-bill yields, and the structural growth of digital-native investment platforms. This report provides a comparative analysis of three core instruments — Money Market Funds (MMFs), Money Market Accounts (MMAs), and conventional Savings Accounts — examined through the lens of Singapore’s unique monetary policy framework, regulatory architecture, and retail investor behaviour.
Against a backdrop of 6-month T-bill yields declining to approximately 1.37% as of February 2026, and core inflation projected to normalise at 1.0–2.0% for 2026, SGD-denominated MMFs have emerged as the dominant choice for yield-seeking investors, delivering net returns of 3.3–3.6% p.a. on a daily-liquidity basis. High-yield savings accounts, while SDIC-insured, require increasingly burdensome behavioural conditions to unlock competitive rates, while fixed deposits have lost their premium amid declining benchmark rates.
The key finding of this analysis is that no single instrument dominates across all investor objectives. Rather, optimal cash management in Singapore requires a tiered, multi-instrument strategy — governed by the investor’s liquidity horizon, tax position, risk tolerance, and ability to satisfy relationship-based account conditions.
- Singapore’s Regulatory and Monetary Policy Framework
1.1 MAS Monetary Policy Architecture
Unlike most major central banks, the Monetary Authority of Singapore (MAS) conducts monetary policy through management of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) against a trade-weighted basket of currencies, rather than through a policy interest rate. This exchange-rate-based framework has direct implications for domestic short-term interest rates: they are largely determined by global rate dynamics and Singapore’s interest rate differential with major economies, rather than by MAS fiat.
Through 2025, MAS executed two policy easings — in January and April — reducing the slope of the S$NEER appreciation band. By October 2025, MAS paused its easing cycle, maintaining the prevailing rate of appreciation with no changes to the band’s width or centre. In its January 2026 Monetary Policy Statement, MAS maintained this stance, projecting that core inflation would normalise to 1.0–2.0% in 2026 after averaging just 0.7% in 2025.
Policy Implication: Because Singapore’s short-term interest rates are transmission products of global rates and exchange rate management, the decline in T-bill yields from ~3.7% (early 2025) to ~1.37% (February 2026) reflects global rate compression rather than a domestically accommodative stance per se.
1.2 Deposit Insurance: SDIC vs. No SDIC
The Singapore Deposit Insurance Corporation (SDIC) insures SGD-denominated deposits at member banks and finance companies up to S$100,000 per depositor per institution (increased from S$75,000 in April 2024). This coverage applies to savings accounts and fixed deposits but explicitly excludes MMFs, which are classified as investment products under the Securities and Futures Act.
MMFs are instead regulated by MAS under the collective investment scheme framework, mandating diversification across short-duration, high-quality debt instruments including MAS Bills, Singapore Government Securities (SGS), certificates of deposit, and investment-grade commercial paper. There is no capital guarantee; however, MMFs in Singapore have not historically experienced capital losses.
Table 1: Regulatory Framework Comparison
Criterion MMF Savings Account Fixed Deposit
Regulator MAS (CIS framework) MAS (Banking Act) MAS (Banking Act)
SDIC Coverage None (SIPC equivalent not applicable in SG) Up to S$100,000 Up to S$100,000
Capital Guarantee No Yes Yes
Instrument Type Collective Investment Scheme Bank Deposit Bank Deposit
Tax on Returns Generally non-taxable for individuals Generally non-taxable for individuals Generally non-taxable for individuals - Instrument-by-Instrument Analysis: Singapore Context
2.1 Money Market Funds (MMFs)
Market Structure
The SGD MMF landscape in Singapore has matured significantly, anchored by several large institutional funds. The Fullerton SGD Cash Fund — the largest by assets under management at over S$5 billion — invests predominantly in bank deposits from investment-grade institutions, achieving a weighted average maturity of under two months. Other prominent funds include the Phillip Money Market Fund, United SGD Money Market Fund, and the Lion-MariBank SavePlus Fund.
A newer generation of fintech-distributed MMFs, accessible through platforms such as StashAway, Endowus, Syfe, Moomoo (Cash Plus), and Tiger Vault, has democratised access significantly. These platforms allow retail investors to allocate with no minimum balance, T+1 to T+3 liquidity, and expense ratios ranging from 0.10% to 0.35% per annum.
Yield Performance
As of January–February 2026, SGD-denominated MMFs are broadly yielding 3.3%–3.6% net p.a. for standard funds, and up to 3.8% for enhanced liquidity products that incorporate short-duration bond exposure. This premium over T-bill yields (~1.37%) and fixed deposit rates (1.20%–1.58% for 3-month tenures) reflects the MMF’s ability to maintain diversified institutional deposit exposures and roll short-duration instruments dynamically.
Note on Enhanced MMFs: Funds such as the LionGlobal SGD Enhanced Liquidity Fund incorporate bonds with longer weighted durations (up to 12+ months), introducing modest interest rate risk in exchange for higher yield. These are suitable for investors with a medium-term horizon and tolerance for minor NAV fluctuation.
2.2 High-Yield Savings Accounts (HYSAs)
Structural Characteristics
Singapore does not maintain a distinct regulatory category for ‘money market accounts’ (MMAs) as exists in the United States. The functional equivalent is the high-yield savings account (HYSA) — a bank savings product that unlocks progressively higher interest rates contingent on meeting behavioural criteria. These typically include: salary crediting (minimum S$1,500–S$3,000/month), minimum credit card expenditure (S$500–S$2,000/month), insurance or investment product subscriptions, and mortgage relationships.
Current Rate Environment
Following two MAS policy easings and broad-based rate cuts at major banks (UOB, OCBC, MariBank all reduced rates in H2 2025), the effective interest rate on top HYSAs has declined to approximately 2.45%–3.05% for fully-qualified depositors. Standard Chartered Bonus$aver leads at up to 3.05% for engaged savers. For depositors unable to satisfy all conditions, the base rate frequently falls to 0.05%–0.30%.
Table 2: Leading Singapore HYSA Rates (February 2026)
Bank / Product Max. Rate (p.a.) SDIC Coverage Key Conditions
Standard Chartered Bonus$aver Up to 3.05% Up to S$100,000 Salary credit, card spend, insurance
UOB One Account Up to 2.50% Up to S$100,000 Salary credit, card spend
OCBC 360 Account Up to 2.45% Up to S$100,000 Salary credit, save, spend, insure
MariBank Savings (Digital) ~1.28% Up to S$100,000 None (base rate)
GXS / Trust Bank (Digital) ~0.20–0.50% above majors Up to S$100,000 Variable promotional rates
2.3 Standard Savings Accounts
Basic savings accounts at major Singapore banks (DBS/POSB, UOB, OCBC) offer nominal rates of 0.05%–0.30% p.a. — effectively zero in real terms given projected inflation of 1.0%–1.5% for 2026. These accounts serve a pure liquidity function: immediate access via ATM, FAST transfers, and PayNow. They are not competitive yield instruments.
However, standard savings accounts remain the foundational product for Singaporeans meeting CPF, SRS, and salary crediting requirements. Their primary advantage is simplicity — no minimum balance to maintain for SDIC protection, no behavioural conditions, and universal acceptance for bill payments and standing orders. - Comparative Yield Analysis: 2023–2026 Trajectory
The period 2022–2024 represented an extraordinary yield environment in Singapore, driven by the US Federal Reserve’s aggressive tightening cycle. MAS T-bill yields peaked at approximately 3.8% in early 2023. Fixed deposit rates at major banks briefly exceeded 3.0% for 12-month tenures. MMFs tracked these elevated benchmarks closely.
The subsequent easing cycle — global Fed cuts from September 2024, complemented by two MAS policy easings in 2025 — compressed benchmark yields substantially. The 6-month MAS T-bill, which yielded 3.7% in early 2025, had declined to 1.6% by December 2025 and further to 1.37% at the February 2026 auction.
Table 3: Indicative Yield Comparison Across Instruments (SGD, February 2026)
Instrument Indicative Yield Liquidity SDIC Conditions Required
SGD MMF (Standard) 3.3–3.6% p.a. T+1 to T+3 No None
SGD MMF (Enhanced) 3.6–3.8% p.a. T+2 to T+3 No None
HYSA (fully qualified) 2.45–3.05% p.a. Same-day Yes Salary, spend, insure
HYSA (base rate) 0.05–0.30% p.a. Same-day Yes None
Fixed Deposit (3-month) 1.45–1.58% p.a. At maturity only Yes Lock-in required
Singapore T-Bill (6-month) ~1.37% p.a. At maturity only N/A (Govt) Auction participation
Singapore Savings Bond (SSB) ~2.16–2.25% avg. Monthly redemption N/A (Govt) S$500 minimum
CPF Ordinary Account 2.5% p.a. Restricted access Govt-backed CPF membership - Singapore-Specific Contextual Factors
4.1 The CPF Overlay
A unique feature of Singapore’s savings ecosystem is the Central Provident Fund (CPF), a mandatory defined-contribution scheme providing government-backed returns of 2.5% on Ordinary Accounts and 4.0% on Special and MediSave Accounts. For working Singaporeans, the CPF constitutes the primary savings vehicle, with voluntary top-ups eligible for tax relief.
The CPF’s guaranteed 4.0% on the Special Account — historically superior to most non-equity instruments — effectively raises the opportunity cost of idle cash held in lower-yielding products. Younger investors increasingly recognise this, with a notable shift toward voluntary CPF contributions as a de facto substitute for cash savings, particularly for medium-to-long horizon funds.
4.2 The Supplementary Retirement Scheme (SRS)
The SRS is a voluntary government-administered account allowing contributions that are tax-deductible at the marginal rate. SRS funds may be invested in a broad range of instruments including MMFs. Platforms such as Syfe now offer SRS-eligible MMF products (e.g. Syfe Cash+ Flexi SGD), enabling investors to compound tax savings with MMF yields — a structure with no direct US equivalent.
4.3 Digital Bank Disruption
The entry of digital banks — GXS (backed by Grab and Singtel), MariBank (SEA Limited), and Trust Bank (Standard Chartered and FairPrice Group) — has introduced new competitive dynamics. These institutions offer higher base savings rates and seamless app-based access to affiliated MMFs (e.g. Mari Invest SavePlus). However, rates at digital banks have fallen sharply from their 2024 acquisition-phase peaks, converging toward traditional bank ranges as the institutions mature.
4.4 Oligopolistic Banking Structure
Singapore’s banking sector is dominated by three domestic institutions — DBS, UOB, and OCBC — supplemented by several foreign banks (Standard Chartered, Citibank, HSBC). This concentration limits the intensity of rate competition for vanilla savings products compared to, for example, the US market. It partly explains why MMFs — not subject to bank cartel dynamics — have delivered superior yields relative to deposit products during the current rate cycle. - Macroeconomic Outlook: 2026 and Beyond
5.1 MAS Policy Trajectory
In its January 2026 Monetary Policy Statement, MAS maintained the prevailing rate of appreciation of the S$NEER policy band. The central bank projected that MAS Core Inflation would normalise to 1.0–2.0% in 2026, following a period of marked weakness (0.7% for full-year 2025). GDP growth is expected to remain resilient, supported by the global AI-driven capital expenditure cycle and a robust construction pipeline, although the output gap is projected to close to approximately 0% in 2026.
Given that MAS eased twice in 2025 and paused in October, the probability of further near-term easing is limited unless global growth deteriorates materially. The key upside risk to rates — and therefore to yield instruments — is a reacceleration of imported inflation driven by commodity price shocks, renewed trade conflict, or a sudden reversal in Singapore dollar appreciation pressures.
5.2 T-Bill Yield Outlook
The 6-month T-bill yield, which has declined from ~3.7% in early 2025 to ~1.37% by February 2026, is expected to stabilise at or slightly above current levels through mid-2026, assuming MAS holds its current monetary policy stance. Further compression is possible if global risk appetite weakens and demand for SGS instruments surges. A return to 2023-era yields (3.5%+) is unlikely in the 12-month horizon absent a major inflationary or geopolitical shock.
5.3 MMF Yield Persistence
The persistence of MMF yields at 3.3%–3.6% — well above T-bill yields — warrants examination. This premium is attributable to: (1) institutional SGD fixed deposit rates negotiated by fund managers exceeding retail bank rates; (2) the rolling of instruments across a diversified pool that captures various bank tenor premiums; and (3) modest credit differentiation across investment-grade counterparties. As SORA-linked deposit rates gradually normalise downward with the broader rate environment, MMF yields are expected to face gradual compression through 2026, trending toward 2.5%–3.0% by year-end.
Forward-Looking View: Investors should not anchor expectations to current MMF yields of 3.3%–3.6%. A more conservative planning assumption of 2.5%–3.0% by Q4 2026 aligns with the consensus rate outlook. The MMF yield advantage over HYSAs is expected to narrow but remain positive through 2026. - Impact Analysis: Investor Segments
6.1 Retail Investors (Mass Market)
For typical working Singaporeans with moderate savings (S$20,000–S$100,000), the optimal strategy in the current environment involves a tiered allocation. A core emergency liquidity tranche (3–6 months of expenses) should remain in a qualified HYSA to capture SDIC protection and same-day access. Surplus savings beyond this buffer are better deployed into SGD MMFs via fintech platforms, capturing the yield premium without lock-in constraints.
The CPF top-up consideration is particularly salient for this segment: a voluntary Special Account contribution at 4.0% p.a. (tax-deductible) dominates MMF returns on a risk-adjusted, after-tax basis for investors with a 5+ year horizon. The irreversibility of CPF contributions, however, makes MMFs superior for investors with shorter or uncertain cash needs.
6.2 High Net Worth Individuals (HNWIs)
HNWIs — those with S$500,000+ in liquid assets — face a distinct challenge: SDIC coverage of S$100,000 per institution requires maintaining accounts across at least five banks to fully insure S$500,000. Given this administrative overhead, MMFs become relatively more attractive as they do not carry per-institution concentration risk in the same way (though counterparty diversification within funds still requires due diligence).
Projected household financial assets in Singapore are expected to grow 5–7% annually, reaching S$1.8–2.0 trillion by 2026, reinforcing Singapore’s position as a regional wealth management hub. For this segment, private credit and structured products are increasingly considered alongside MMFs as part of a broader cash management architecture.
6.3 Corporates and Institutional Treasuries
Singapore-incorporated entities managing working capital have traditionally relied on bank fixed deposits and overnight SORA-linked instruments. The rise of institutional MMF access through platforms like Endowus and direct fund subscriptions has provided a competitive alternative. Corporate treasury teams value MMFs for their daily liquidity without the administrative burden of FD rollovers, though MAS regulatory treatment of MMFs as investment (rather than deposit) products requires accounting and board-level investment policy considerations. - Decision Framework for Singapore Investors
Table 4: Investor Profile–Instrument Mapping
Investor Profile Primary Instrument Secondary Instrument Rationale
Emergency fund holder HYSA (qualified) Standard savings (base) Instant liquidity + SDIC insurance; yield secondary to access
Short-term saver (< 1 yr) SGD MMF (standard) HYSA or SSB Superior yield without lock-in; T+1–T+3 redemption adequate for planned expenditure Medium-term saver (1–3 yr) SGD MMF (enhanced) SSB or FD Enhanced MMF captures duration premium; SSB provides government guarantee Working Singaporean (< 55) CPF top-up (SA/MA) SGD MMF (remainder) 4.0% CPF SA dominates on risk-adjusted, tax-deductible basis for illiquid long-term savings Retiree / near-retirement HYSA + SSB FD (laddered) Capital preservation and SDIC coverage paramount; SSB provides monthly exit option HNWI (> S$500K liquid) SGD MMF + multi-bank HYSA Private credit / structured products Diversify across SDIC-covered banks for insurance; MMF for surplus; private credit for yield enhancement
Corporate treasury Institutional MMF SORA-linked FD / T-bills Daily liquidity without FD rollover burden; policy treatment of MMF as investment requires board mandate - Risks and Limitations
8.1 Yield Compression Risk
The most significant near-term risk for MMF investors is continued yield compression as SORA-linked institutional deposit rates decline. A scenario where global central banks resume easing or where Singapore’s growth disappoints materially could drive MMF yields toward 2.0%–2.5% — narrowing the HYSA-comparable advantage.
8.2 Regulatory and Tax Risk
Singapore currently does not levy personal income tax on interest income for most retail investors, providing a level playing field across instruments. However, any future changes to tax treatment of collective investment scheme distributions — a low-probability but non-zero risk — could alter the relative attractiveness of MMFs. Corporate investors face different considerations under the Income Tax Act.
8.3 Platform and Counterparty Risk
Fintech-distributed MMFs (StashAway, Syfe, Endowus) hold assets in trust accounts at licensed custodians (typically UOB Kay Hian or equivalent), providing structural segregation from platform insolvency. However, investors should verify that their platform routes subscriptions into MAS-recognised funds and maintains SIAC or equivalent dispute resolution access.
8.4 Inflation Erosion
With MAS projecting core inflation at 1.0%–2.0% for 2026, even MMF yields of 3.3%–3.5% deliver real returns of only 1.3%–2.5%. Standard savings accounts (0.05%–0.30%) generate deeply negative real returns. Long-term over-allocation to any cash instrument — relative to growth assets — carries meaningful opportunity cost for wealth accumulation. - Conclusion
Singapore’s 2026 cash management environment rewards informed, active allocation over passive deposit inertia. The structural yield advantage of SGD money market funds — delivering 3.3%–3.6% net on a daily-liquidity basis, against T-bill yields of ~1.37% and qualified HYSA rates of 2.45%–3.05% — represents a compelling case for retail and institutional investors willing to forgo SDIC insurance.
However, the appropriate instrument mix is profoundly dependent on individual circumstances. SDIC-covered HYSAs retain primacy for emergency liquidity tranches where capital protection is non-negotiable. CPF voluntary contributions dominate all cash instruments for eligible Singaporeans with long-term horizons. SSBs offer a government-guaranteed middle ground with monthly exit optionality. And MMFs serve best as a yield-optimised parking facility for medium-term, discretionary savings.
Looking forward, investors should anticipate gradual MMF yield compression through 2026 as the global and domestic rate environment stabilises. The strategic priority is not to chase current peak yields but to establish a durable, multi-layered cash management architecture — diversified across instruments, institutions, and time horizons — that balances the Singapore saver’s perpetual trilemma of safety, liquidity, and return.
Sources and Data References
MAS Monetary Policy Statements (January 2025, April 2025, July 2025, October 2025, January 2026) — www.mas.gov.sg
MAS Macroeconomic Review, Volume XXIV Issue 3, October 2025
StashAway Singapore: Complete Guide to Money Market Funds in Singapore (2026) — www.stashaway.sg
Beansprout (Growbeansprout.com): Best Money Market Funds in Singapore, June 2024 / November 2025
Endowus Singapore: Deep Dive into Money Market Funds in Singapore (2026) — endowus.com
Syfe Magazine: Top Money Market Funds in Singapore, September 2025 — syfe.com
Dr Wealth: Best Cash Management Accounts in Singapore, September 2025 — drwealth.com
Ahboy.com: Fixed Deposit Rates in Singapore, February 2026
88ask.com/Maxthon Blog: Current Cash Yields in Singapore, February 2026
SDIC Singapore: Deposit Insurance Scheme — sdic.org.sg
Investopedia: Money Market Fund vs. Money Market Account vs. Savings Account (reference framework)