Singapore Money Market Account Landscape

Outlook, Solutions & Impact Analysis

Prepared: February 2026
Financial Markets Research Division

CONFIDENTIAL — FOR INTERNAL USE ONLY

Executive Summary
Singapore’s money market landscape in 2026 is defined by a pronounced compression of yields, a structural divergence from global peers, and a rapidly evolving product ecosystem. As the Monetary Authority of Singapore (MAS) twice eased monetary policy in 2025 — both times reducing the rate of appreciation of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) — short-term benchmark rates have declined sharply.

The 6-month MAS T-bill yield fell from approximately 3.7% in early 2025 to 1.37% by February 2026. This trajectory has fundamentally altered the cash management calculus for retail and institutional investors alike. Conventional savings products — fixed deposits and standard savings accounts — now offer just 1.2%–1.6% and 0.05%–0.30% respectively, barely ahead of a CPI running at 1.2% year-on-year.

Into this gap, money market funds (MMFs) and cash management accounts (CMAs) — robo-advisory wrappers that predominantly hold MMFs — have emerged as the dominant value proposition in the short-term cash space, delivering yields of 1.8%–3.8% p.a. with daily to T+3 liquidity. Their proliferation has been accelerated by MAS-regulated fintech platforms such as StashAway, Endowus, and Syfe, democratising access to institutional-grade cash instruments.

This case study examines the structural backdrop, prevailing instrument landscape, forward outlook, strategic solutions for both retail and institutional participants, and the broader macro-financial impact of this environment on Singapore’s savings culture, banking sector, and capital markets.

1. The Money Market Landscape in Singapore
   1.1 Macroeconomic & Monetary Policy Context
   Singapore’s monetary framework is unique among major economies: MAS operates policy via the exchange rate rather than a domestic interest rate, managing the S$NEER within a policy band to achieve price stability. Interest rates in Singapore therefore primarily reflect external global conditions — principally US Federal Reserve policy — and the demand-supply dynamics of the domestic interbank market, rather than a domestically set benchmark rate.

Following the Federal Reserve’s cumulative rate cuts since September 2024 (six cuts totalling 150 basis points), Singapore’s own short-rate complex declined in tandem. MAS eased twice in 2025. The Singapore Overnight Rate Average (SORA), the primary interbank reference rate replacing SIBOR, declined accordingly, pulling down yields across the money market spectrum.

Indicator Value (Feb 2026) Prior Year (Feb 2025)
6-Month MAS T-bill Yield 1.37% ~3.70%
Singapore CPI (YoY) 1.2% ~2.5%
MAS Core Inflation Forecast 2026 0.5%–1.5% N/A
GDP Growth Forecast 2026 Near-trend (~2%) Above-trend (~3.5%)
Standard Savings Account Rate 0.05%–0.30% 0.05%–0.30%
Fixed Deposit Rate (3-month) 1.20%–1.58% ~3.0%–3.5%
High-Yield Savings Account (conditional) 2.05%–2.45% ~3.0%–4.0%
Money Market Fund Yield Range 1.8%–3.8% 3.5%–4.2%
Table 1: Key Macroeconomic & Rate Indicators, Singapore (February 2026)
1.2 The Money Market Instrument Ecosystem
Unlike the United States — where ‘money market accounts’ are bank-offered deposit accounts with check-writing functionality — Singapore’s short-term cash ecosystem is more heterogeneous, spanning five primary categories:

(a) Bank Savings & Fixed Deposit Accounts
The most familiar vehicle. Standard savings accounts from the major local banks (DBS, OCBC, UOB) pay negligible rates (~0.05%), while tiered high-yield accounts (e.g., DBS Multiplier, OCBC 360, UOB One) offer 2.05%–2.45% conditional on fulfilling multiple criteria: salary crediting, minimum card spend, insurance purchases, and incremental savings. These conditions create a significant compliance burden and limit the accessible yield for many depositors.

Fixed deposits currently offer 1.20%–1.58% for 3-month tenures following a brief upward adjustment during the Chinese New Year promotional season. They carry no ongoing conditions but sacrifice liquidity, making them unsuitable for operational cash buffers.
(b) Singapore Government Securities: T-bills & Singapore Savings Bonds
MAS T-bills are zero-coupon instruments offered at 1-month, 3-month, and 6-month maturities via bi-weekly auctions accessible to retail investors through bank ATMs and DBS/POSB iBanking. The 6-month yield of 1.37% as of February 2026 represents the government risk-free benchmark and a significant compression from 3.7% twelve months prior. Singapore Savings Bonds (SSBs) offer a 10-year average return of approximately 2.16%–2.25%, redeemable monthly without penalty, making them a structural complement to shorter-term instruments for medium-horizon liquidity.
(c) Money Market Funds (MMFs)
Regulated by MAS under the Securities and Futures Act, SGD-denominated MMFs invest in short-duration, high-quality instruments — MAS Bills, government securities, bank placements, and investment-grade corporate paper. MAS rules mandate diversification and credit quality constraints analogous to IOSCO standards. As of 2026, the yield range across institutional SGD MMFs spans 1.8%–3.8% p.a., with total expense ratios (TERs) of approximately 0.15%–0.45% deducted from gross yield. Key funds include:

Fund Provider Primary Holdings Approx. Net Yield (Jan 2026) Liquidity
Fullerton SGD Cash Fund Bank deposits, T-bills ~1.8%–2.2% T+1
LionGlobal SGD MMF MAS Bills, bonds, rate securities ~2.5%–3.0% T+1
Phillip Money Market Fund Diversified MMF instruments ~2.5%–3.2% T+1
Lion-MariBank SavePlus ~60% MAS Bills + bond funds ~2.09% (after fees) T+1
Amova STBF Bonds + rate securities ~3.0%–3.8% T+2/T+3
Table 2: Selected SGD Money Market Funds (February 2026). Yields are indicative and variable.
(d) Cash Management Accounts (CMAs)
CMAs are robo-advisory overlay products offered by MAS-licensed platforms that invest client cash into curated MMF portfolios. They have democratised access to institutional-grade returns with minimum deposits as low as S$1. Leading providers include Endowus (Cash Smart Secure/Enhanced/Ultra), StashAway (Simple/Simple Plus), and Syfe (Cash+). CMA platforms segregate client assets in trust accounts (typically at UOB Kay Hian or equivalent licensed custodians), ring-fencing them from platform insolvency risk. Management fees of 0.05%–0.43% apply.

A key risk event that heightened public scrutiny of CMAs was the Chocolate Finance withdrawal incident, which underscored the importance of understanding custodial arrangements and liquidity mechanics even within low-risk cash products.
(e) CPF as a Structural Overlay
Singapore’s Central Provident Fund provides a government-guaranteed savings framework — 2.5% on Ordinary Account balances and 4.0% on Special/MediSave/Retirement accounts — that structurally anchors the opportunity cost of cash for employed Singaporeans. CPF’s rates are particularly salient when evaluating whether to invest discretionary savings or top up CPF, especially in a declining rate environment.

2. Key Challenges & Problem Statement
   2.1 Yield Compression and the Real Return Trilemma
   The central challenge for Singapore-based cash holders in 2026 is navigating the trilemma of safety, liquidity, and real return. With inflation projected at 0.5%–1.5% and most cash instruments yielding 1.2%–2.5%, real returns are minimal to marginally positive. The instruments offering the highest yields — longer-duration MMFs and CMAs with short-duration bond exposure — carry modest but non-trivial drawdown risk and multi-day liquidity lags, which may not suit operational cash needs.

2.2 Structural Complexity of High-Yield Savings Accounts
High-yield savings accounts in Singapore advertise rates of 2.05%–2.45%, but these are conditional on a constellation of concurrent product relationships — salary crediting, minimum card spend, loan or investment products, and incremental balance growth. The effective yield for many consumers who cannot or choose not to fulfil all criteria is substantially lower, often approaching the base rate of 0.05%. This complexity disadvantages less financially literate participants and creates a friction-laden user experience inconsistent with the simplicity demanded by modern digital banking consumers.

2.3 Interest Rate Trajectory Uncertainty
Forward guidance from MAS suggests core inflation will trough near-term and gradually rise toward 0.5%–1.5% in 2026. Whether MAS re-tightens policy depends significantly on global conditions — particularly the trajectory of US Federal Reserve policy, geopolitical trade disruptions, and the sustainability of the AI investment boom supporting Singapore’s manufacturing and services exports. Investors face material uncertainty about whether current MMF yields will hold, compress further, or recover.

2.4 Financial Literacy and Platform Risk
The rapid proliferation of CMA platforms has outpaced financial literacy growth among retail participants. Many investors conflate MMF-based CMAs with bank deposits, misunderstanding that (a) returns are variable and unsecured, (b) redemption is not instantaneous, and (c) platform failure, while mitigated by asset segregation, is a distinct risk from fund performance risk. MAS oversight provides substantial protection, but retail education remains a gap.

2.5 Comparison with US & Global Peers
The contrast with the US money market account landscape is stark. As documented by Investopedia (February 2026), the top US money market account rate stands at 4.00% APY versus a national average of 0.56% APY — itself more than double Singapore’s highest conditional savings rate. This differential reflects the substantially higher US federal funds rate (3.50%–3.75% target range as of January 2026) versus Singapore’s exchange-rate-centred policy framework and declining short-rate complex.

3. Forward Outlook
   3.1 Monetary Policy Trajectory
   MAS eased monetary policy twice in 2025 by reducing the rate of S$NEER appreciation. The October 2025 Monetary Policy Statement projected 2026 GDP growth to moderate to a near-trend pace with the output gap narrowing toward 0%, and core inflation to remain in the 0.5%–1.5% range. MAS has signalled that its prevailing modest appreciation stance remains appropriate for medium-term price stability.

This implies limited room for further easing absent a significant external shock, but equally limited prospect of meaningful tightening in the near term. Singapore short-term rates are therefore expected to remain range-bound — with T-bill yields likely oscillating in the 1.2%–1.8% zone through mid-2026, assuming the US Fed holds rates steady or implements one additional cut.

3.2 MMF Yield Trajectory
MMF yields, which currently span 1.8%–3.8%, are expected to gradually compress toward the lower end of that range through 2026 as global rate cuts filter through. Funds with greater exposure to short-duration bonds or mixed credit instruments may sustain yields at the upper end temporarily, but at increased interest rate and credit risk. Purely deposit-and-T-bill-focused funds will likely converge toward the 1.8%–2.2% range within 12 months.

3.3 Competitive Dynamics: Digital Banks and Fintechs
Digital banks (MariBank, Trust Bank, GXS Bank) licensed under MAS’s 2020 digital banking framework are reshaping competition. They have introduced bundled savings-and-investment products — such as MariBank’s Mari Invest SavePlus — that lower distribution costs and pass yield through to retail customers more efficiently than incumbent banks. This competitive pressure is expected to compress net interest margins at traditional banks further, incentivising them to innovate on product design.

3.4 Macro-Financial Risks
Downside risks to the rate outlook include: (a) an abrupt AI investment correction causing a sharper-than-expected Singapore growth slowdown, triggering further MAS easing; (b) renewed global trade conflict lifting imported inflation but depressing growth simultaneously, creating a stagflationary dilemma for MAS; and (c) further US Fed rate cuts compressing the Singapore rate complex.

Upside risks include a sustained global manufacturing upcycle sustaining above-trend Singapore growth, and geopolitically driven commodity price spikes lifting headline CPI and prompting MAS to resist further easing.

Scenario Probability (Indicative) T-bill Yield Outlook MMF Yield Outlook
Base Case: Stable, gradual compression ~55% 1.2%–1.6% 1.8%–2.8%
Bull Case: Global re-acceleration ~20% 1.6%–2.2% 2.5%–3.5%
Bear Case: Renewed global slowdown ~25% 0.8%–1.2% 1.2%–2.0%
Table 3: 12-Month Forward Scenario Analysis (February 2026). Indicative only; not investment advice.

4. Strategic Solutions
   4.1 For Retail Investors
   Solution A: Laddered T-bill & SSB Strategy
   Investors prioritising capital certainty and government-guaranteed returns should adopt a laddering approach: allocating a portion to the bi-weekly T-bill auction (6-month tenor at ~1.37%) for near-term yield certainty, while deploying a separate tranche into Singapore Savings Bonds for the 10-year average return of 2.16%–2.25% with monthly redemption flexibility. This structure maximises government-guaranteed yield across the curve with no principal risk.

Solution B: CMA Core + T-bill Satellite
For investors comfortable with MMF-level risk, a core allocation to a high-quality CMA (e.g., Endowus Cash Smart Secure or StashAway Simple Plus at ~2.5%–3.0% net) provides superior yield over T-bills with T+1 to T+3 liquidity, while a satellite T-bill allocation provides a principal-guaranteed anchor. This structure optimises the yield-liquidity-safety trilemma for most retail use cases.

Solution C: Maximise Conditional Savings Account Benefits
For consumers who can naturally fulfil salary crediting, card spend, and other conditions, high-yield savings accounts at 2.05%–2.45% remain competitive on a risk-adjusted basis, given their SDIC insurance coverage up to S$75,000 per depositor per institution. The key discipline is to ensure conditions are genuinely met rather than incurring fees or sub-optimal product choices purely to unlock the rate.

4.2 For Institutional & Corporate Treasurers
Solution D: Institutional MMF Direct Access
Corporate treasury teams should consider direct access to institutional share classes of MAS-regulated MMFs (minimum investments typically S$100,000–S$250,000), bypassing the management fee overlay of retail CMA platforms and capturing gross yields of 2.5%–3.8% for operational cash with daily or T+1 liquidity. Careful due diligence on fund mandate, duration, and credit quality is essential.

Solution E: Term Deposit Optimisation via Competitive Tendering
With digital banks and challenger institutions competing aggressively on fixed deposit rates — particularly during promotional periods — corporates holding significant cash buffers should implement a competitive tendering process across DBS, OCBC, UOB, and digital bank counterparts for term deposits, segmenting pools by tenor (1-month, 3-month, 6-month) to match liability schedules.

4.3 For Platform Operators & Financial Institutions
Solution F: Financial Literacy Integration
MAS-licensed CMA and MMF distribution platforms should invest in embedded financial literacy tools — clearly communicating the distinction between MMF yield variability and bank deposit guarantees, the T+3 redemption mechanics, and the custodial protection structure. This is both a regulatory imperative under MAS’s fair dealing guidelines and a competitive differentiator in a market shaken by the Chocolate Finance incident.

Solution G: USD and Multi-Currency MMF Products
As the SGD rate complex declines, Singapore-domiciled investors with USD income or liabilities may benefit from USD MMF options — which continue to offer substantially higher yields (approximately 4%+ as of February 2026, mirroring US market rates). MAS-regulated platforms offering both SGD and USD cash management products provide natural currency diversification and yield optimisation for internationally oriented investors.

5. Impact Analysis
   5.1 Impact on Retail Savings Behaviour
   The yield compression cycle has produced a measurable shift in Singapore retail savings behaviour. The high-rate environment of 2022–2024 cultivated a financially engaged retail investor cohort accustomed to actively shopping T-bills, fixed deposits, and CMAs. As those elevated yields have normalised, two divergent patterns are emerging: a cohort returning to passive bank deposits — accepting lower yields in exchange for convenience — and a more financially sophisticated segment rotating into equity and balanced investment products in search of returns above the 2%–3% cash threshold.

This bifurcation has positive long-term implications for capital market deepening in Singapore, as the MAS’s Financial Sector Development agenda has long sought to expand retail participation in investment products beyond deposits and property.

5.2 Impact on Singapore’s Banking Sector
The compression of fixed deposit rates to 1.2%–1.58% and the rise of CMA platforms represent structural pressure on the net interest margin (NIM) models of incumbent banks. DBS, OCBC, and UOB benefited substantially from the high-rate environment of 2023–2024, with NIMs expanding materially. The reversal — combined with intensifying competition from digital banks with lower cost structures — will compress NIMs through 2026 and likely into 2027.

Banks are responding through product bundling (driving multiple product relationships per customer), fee income diversification, and accelerated investment in digital platform capabilities. The major banks retain significant competitive moats through their SDIC-insured deposit franchises, existing customer relationships, and superior payment infrastructure.

5.3 Impact on MAS Liquidity Management
The MAS’s money market operations — issuing MAS Bills to drain excess SGD liquidity and calibrating repo facilities to smooth SORA volatility — are conducted against a backdrop of robust structural liquidity in the banking system. The declining rate environment has reduced the attractiveness of MAS Bills as a yield vehicle for banks but has maintained their utility as high-quality liquid assets (HQLAs) for regulatory purposes under the Liquidity Coverage Ratio and Net Stable Funding Ratio frameworks.

5.4 Comparative Global Impact
Singapore’s position as a leading global financial centre means its money market environment has implications beyond domestic retail savings. The SGD money market serves as a hub for regional treasury operations: multinational corporations, family offices, and regional asset managers holding SGD cash need to navigate the same yield-liquidity trilemma. The proliferation of fintech CMA platforms has made Singapore a reference market for the region in terms of retail financial product innovation, with comparable solutions emerging in Malaysia, Thailand, and Indonesia.

Stakeholder Primary Impact Strategic Implication
Retail Investors Declining yields on T-bills and FDs; real returns near zero Diversify into CMAs, SSBs, and begin equity exposure for long-horizon funds
Corporate Treasurers Lower yields on operational cash; FD rates below 2% Adopt competitive tendering; explore institutional MMF direct access
Incumbent Banks (DBS/OCBC/UOB) NIM compression; CMA platform competition for deposits Deepen product bundling; accelerate digital banking investment
Digital Banks (MariBank, GXS, Trust) Opportunity to gain share with streamlined, higher-yield savings products Expand MMF-linked savings products; invest in financial literacy
MAS / Regulators Balanced: declining rates ease household debt burdens but compress real savings returns Monitor financial stability risks from yield-chasing; enhance CMA disclosure norms
Fintech CMA Platforms Heightened scrutiny post-Chocolate Finance; user trust paramount Strengthen custodial disclosure, redemption transparency, and client communication
Table 4: Stakeholder Impact Matrix — Singapore Money Market Landscape (2026)

6. Recommendations
   6.1 Policy-Level
7. MAS should consider standardising minimum disclosure requirements for CMA platforms, ensuring redemption timelines, fee structures, and the nature of custodial arrangements are presented in a uniform, comparable format accessible to retail investors.
8. The SDIC deposit insurance coverage limit of S$75,000 per depositor per institution, while adequate for most retail depositors, should be reviewed periodically against household wealth accumulation trends, particularly given Singapore’s high savings rate.
9. MAS could explore an SSB-style product extended to 2–3 year maturities to provide a more competitive medium-term yield anchor for retail investors in a declining rate environment.

6.2 Institutional

1. Corporate treasury policies should be updated to include MMF direct access as an approved cash management instrument, with appropriate concentration and credit quality limits aligned to investment policy statements.
2. Banks should invest in transparent, rules-free savings products — offering base yields of 1.5%+ without complex conditional structures — to recapture depositors migrating to CMAs.

6.3 Retail Investor

1. Adopt a tiered cash strategy: emergency fund (3–6 months expenses) in a high-yield savings account or CMA with T+1 liquidity; medium-term reserves (6–24 months) in SSBs or laddered T-bills; longer-horizon surplus allocated to diversified investment products.
2. Evaluate CMAs based on underlying fund mandates, custodial arrangements, and total expense ratios — not headline yield alone. Yield differentials of 0.5%–1.0% between CMA products are often attributable to meaningfully different risk profiles.
3. Conclusion
   Singapore’s money market account landscape in 2026 is one of transition: from a high-yield, high-engagement environment driven by the global tightening cycle of 2022–2024, toward a more normalised, structurally lower-yield regime that demands greater financial sophistication from all participants. The T-bill yield’s decline from 3.7% to 1.37% in twelve months is emblematic of the speed with which the landscape can shift.

The emergence of MAS-regulated CMA platforms as mainstream cash management tools represents a durable structural innovation — compressing distribution costs, expanding product access, and enhancing yield transmission to retail depositors. However, this evolution brings with it elevated demands for financial literacy, platform transparency, and regulatory vigilance.

For investors, institutions, and policymakers alike, the optimal response is not to passively accept declining nominal yields, but to actively map cash holdings to the appropriate instrument given each pool’s liquidity horizon, risk tolerance, and tax efficiency. In an environment where the gap between the best and worst cash instruments spans 350+ basis points, active cash management is no longer an institutional privilege — it is a retail necessity.

“In an economic landscape marked by decelerating interest rates and persistent inflationary pressure, money market funds have re-emerged as a cornerstone of short-term liquidity and capital preservation strategies for Singaporean investors.” — StashAway Singapore, January 2026

References

1. StashAway Singapore. Complete Guide to Money Market Funds in Singapore. January 2026.
2. Monetary Authority of Singapore. Monetary Policy Statement. October 2025.
3. Beansprout / 88ask.com. Current Cash Yields in Singapore. February 2026.
4. Dr Wealth. Best Cash Management Accounts in Singapore. September 2025.
5. Endowus. Cash Smart Product Disclosure. Singapore.
6. Investopedia. Best Money Market Account Rates. February 26, 2026.
7. MAS Statistics. Commercial Banks: Deposit Rates of SGD Denominated Deposits. 2025–2026.
8. Ministry of Trade and Industry, Singapore. GDP Advance Estimates Q3 2025.