With T-bills hitting yet another new low, what other low-risk assets can you consider?

Interest rates continue to fall, with recent auction results showing the 6-month T-bill cut-off yield having fallen to 1.41%. For investors looking to generate meaningful income from their cash holdings, the hunt is now on for assets that offer higher returns without venturing too far up the risk spectrum.

Money Market Funds (MMFs)

MMFs probably need no introduction. Highly liquid, they often offer returns comparable to, or slightly better than, bank fixed deposits and are excellent for savers to park short-term cash. However, they are not immune to the falling rate environment. As general interest rates drop, MMF yields have also similarly cooled. While ideal for stability and immediate access, MMFs are generally not the place to chase high returns.

BigFundr Deals

For investors looking for fixed returns with short tenures (typically 12 months) with a highly competitive rate of return that can surpass T-bills, MMFs and corporate bonds, BigFundr may be an appealing option.

BigFundr Deals, which are short-term loan notes backed by international property developments that meet our stringent criteria, are returning at up to 5.05%* nett interest p.a. and provide a predictable income stream through monthly interest payments.

Investors on BigFundr can move beyond traditional low-yielding instruments, securing a significantly higher nett return on capital with a clear maturity profile—an essential feature for investors focused on predictable income generation.

(*interest rate applicable as of 5 December 2025)

REITs and REIT ETFs

Real Estate Investment Trust (REIT) Exchange-Traded Funds (ETFs) are capturing attention with their enticing headline yields, often in the 5% to 6% range. For income seekers, they offer a compelling proposition because not only do they generate yields, but investors can also enjoy potential capital appreciation should interest rates begin to ease.

However, investors must remember that REITs are fundamentally equities. Their prices can fluctuate with market sentiment and expose investors to stock market volatilities, higher borrowing costs due to refinancing risk, and the possibility of yield traps. Investors should always be cautious and do their due diligence before investing in REITs.

Higher-Yielding Bond Funds

For those willing to take on a modest amount of credit and interest rate risk, high-quality corporate and high-yield bond funds can be a valuable addition. Short-duration, high-grade corporate bond funds, for instance, are sometimes described as a "cash-plus" investment, offering greater yield than pure cash without the excessive volatility of equities.

The high-yield debt market is often cited as one of the most efficient asset classes. However, the critical strategy is to selectively avoid weak companies with poor balance sheets, and this may mean investors may require significant investment expertise and knowledge to identify suitable bond funds to invest in.

Diversification is Key

Ultimately, as interest rates fall and yields across all asset classes compress, an investor’s end goal remains constant: balancing liquidity, risk, and yield. Investors should consider having a well-constructed, diversified and resilient investment portfolio that can help achieve financial goals.

BigFundr offers investors property-backed fixed income investment Deals that will give you an edge in performance, quality and risk protection over other fixed income products in the market. Our Deals provide a significant interest rate advantage and resilience to market fluctuations as compared to other products in the market, while offering you unrestricted access without fees, conditions or deposit limits.

Sign up for a free BigFundr account today and start earning monthly interest at superior interest rates!

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