Best Ways to Invest Money in 2025

While investing offers a proven path to grow your wealth over time, the sheer variety of investment options available in Singapore can be overwhelming. From exchange-traded funds and high-yield accounts to bonds and more, navigating the investment landscape can be challenging, especially for those new to investing. Finding the right option that aligns with your financial goals and risk tolerance starts with careful consideration and research.

So, where should you begin?

The quick answer is: it depends. Regardless of your income, investment appetite, or age, you can access most types of investment options. 

>> Compare cash management accounts and find the option that fits your investment needs.

There are various types of investments available in Singapore, each catering to different financial goals and risk appetites. Consider these investment options this year, ranging from low-risk to high-risk alternatives:

While not technically an investment, high-yield savings accounts provide an accessible and low-risk way to grow your money in Singapore. Compared to regular savings accounts, high-yield accounts may yield higher interest rates. As such, they're generally an appealing option for those who don't want to take a significant risk yet want to earn a return on their cash.

Plus, high-yield savings accounts offer the added benefit of liquidity, allowing you to access your funds easily when needed. However, it's important to note that compared to other investment types, the returns on these accounts may be lower.

For those seeking potentially higher returns on uninvested cash, some brokerage firms offer accounts with rates comparable to high-yield savings accounts.

Best for: High-yield savings accounts are ideal for short-term savings goals or funds that you can access readily, such as an emergency fund or travel budget.

Where to open high-yield savings accounts: Banks such as OCBC, UOB, and DBS offer high-yield savings accounts. Compare rates on SingSaver to find the best deals.

>> See the highest-yielding savings accounts

Fixed deposit accounts, or FDs, can let you grow your savings with a guaranteed return. Similar to Certificates of Deposit (CDs) in other countries, this option involves depositing a fixed sum of money with a bank for a specified period, known as the lock-in period. In return, the bank offers a fixed interest rate that’s usually higher than regular savings accounts.

The interest rates on FDs vary depending on the deposit amount and the lock-in period. Generally, longer lock-in periods offer higher interest rates.

FDs provide a predictable return, making them suitable for investors seeking a safe and steady investment option with a fixed investment timeframe. However, it's important to note that early withdrawal from an FD may result in a penalty, so it's crucial to select a lock-in period that aligns with your investment needs.

Best for: Individuals with a low-risk tolerance seeking a safe and predictable investment option with a fixed investment timeframe, such as saving for a down payment on a house or a future vacation.

Where to open fixed deposit accounts: FDs are available at major banks in Singapore, including OCBC, UOB, and HSBC. However, you can compare rates and terms through SingSaver to find the best option for your needs.

>> See the best fixed deposit rates right now

Government bonds are also an investment option in Singapore, offering a relatively safe way to grow your wealth. These bonds are essentially loans to the government, which promises to repay the principal amount at maturity along with periodic interest payments. Government bonds are also considered low-risk investments since the Singaporean government backs them.

One of the more popular government bonds in Singapore, Singapore Savings Bonds (SSBs) are a popular option for investors seeking a safe and flexible investment. They offer a fixed interest rate for a period of 10 years, with the option to redeem them at any time with no penalty. Other government-backed bonds, such as Singapore Government Securities (SGS) bonds, also provide a secure investment opportunity with varying terms and interest rates.

You can invest in bonds through direct purchases from the issuer or through bond funds, which offer diversification across various bonds. Additionally, bond funds provide a convenient way to access the bond market and potentially achieve higher returns than individual bonds.

Best for: Government bonds are ideal for conservative investors seeking a safe, long-term investment plan with guaranteed returns. They’re also suitable for those nearing retirement or seeking to preserve capital.

Where to buy government bonds: Government bonds can be purchased directly through DBS Bank, OCBC Bank, or UOB, or via the Singapore Exchange (SGX).

>> Learn more about how to invest in bonds

A type of fixed-income security, corporate bonds are issued by companies to raise capital. In Singapore, they offer investors an alternative investment option with potentially higher returns than government bonds. However, they also carry higher risk, as the creditworthiness, fluctuating interest rates, and liquidity concerns of the issuing company are some factors to consider.

When evaluating corporate bonds, it's important to assess the yield, which is the return you can expect to receive, and the credit rating, which indicates the financial health of the issuer. Higher yields often come with lower credit ratings, signifying higher risk. Investors seeking higher returns may consider corporate bonds issued by companies with lower credit ratings, but they should be prepared for the increased risk of default.

Best for: Corporate bonds are ideal for investors seeking fixed-income securities with possibly higher yields and who are willing to accept more risk in return.

Where to buy corporate bonds: Corporate bonds can be bought through investment banks like OCBC, Citi, and Standard Chartered, or via the SGX.

>> See the best brokers for bonds

Money market funds are invested in short-term, low-risk debt securities like government bonds and treasury bills. They offer investors a relatively safe and liquid investment option with a stable return. Additionally, professional fund managers handle these funds by investing in a diversified portfolio of short-term yet high-quality debt instruments.

Best for: Money market funds are ideal for investors looking for short-term, low-risk investments with a stable return. They’re also suitable for those seeking to park their funds for a short period while earning a return.

Where to buy money market funds: You can purchase these funds directly from banks or through fund platforms like Moomoo, Syfe and CMC Markets.

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Mutual funds are also a top investment option in Singapore, offering a way to access a variety of assets and a diversified portfolio. These are pooled funds from multiple investors and are invested in securities like bonds, stocks, or other assets. Consequently, investors are able to spread their risk and potentially achieve greater returns than they might by investing in individual securities.   

Often, professional fund managers will handle mutual funds and make investment choices on behalf of the investors. These managers can employ two different approaches: active and passive management. 

In active management, the fund manager frequently buys and sells assets in an attempt to outperform the market, which often results in higher management fees. Passive management, on the other hand, tracks a specific market index, aiming to replicate its performance. Additionally, this approach typically has lower fees and can be an ideal choice for long-term investors.

Best for: Those saving for retirement or have other long-term financial goals. 

Where to buy mutual funds: Mutual funds can be bought through banks like DBS, OCBC, or Citibank. Alternatively, you can use online fund platforms like Fundsupermart (FSMOne).

Index funds passively track a particular market index like the Straits Times Index (STI) or the MSCI World Index. What's more, they can provide you with broad market exposure and the possibility of long-term growth.

Since index funds are managed passively, they don't incur the high costs associated with active fund management. At the same time, they’re a cost-effective choice for those who prefer growing their wealth over time. 

Additionally, index funds offer market-tracking performance, meaning they aim to replicate the underlying index's returns. This can be a suitable strategy for investors who are comfortable with market returns and don't seek to outperform them.

Some of the best index funds available for Singaporean investors include ABF Singapore Bond Index Fund, LionGlobal Infinity Global Stock Index Fund, and Phillip SING Income ETF.

>> Check out the best bond market index funds to buy

Best for: Investors with long-term savings goals who prefer a low-cost, passive investment approach. 

Where to buy index funds: Index funds can be purchased via fund platforms, as well as banks like DBS and OCBC.

Exchange-traded funds (ETFs) are another type of versatile investment option in Singapore. Similar to mutual funds, ETFs pool investors' money to invest in a diversified asset portfolio, such as stocks, bonds, or commodities. However, unlike mutual funds, ETFs are traded on stock exchanges. Consequently, investors can buy and sell them throughout the trading day at market prices.

ETFs provide instant diversification, as they often track a specific index or sector, giving investors exposure to a basket of assets with a single investment. ETFs also provide flexibility, as they can be bought and sold throughout the trading day, offering liquidity and the ability to react to market changes.

Compared to mutual funds, ETFs often have lower investment minimums, allowing a wider range of investors to access them. However, it's important to note that ETFs may involve brokerage commissions when buying and selling, which can add to the overall cost.

To invest in ETFs in Singapore, open a brokerage account or consider robo-advisors. Choose ETFs that meet your investment goals and risk tolerance, and look for low-cost options with international exposure.

Best for: ETFs are ideal for investors seeking low-cost, diversified investments with intraday trading flexibility.

Where to buy: ETFs can be purchased via brokerage accounts with platforms like OCBC Securities, UOB Kay Hian, and DBS Vickers.

>> Discover 8 best ETFs for February 2025

Stocks are perhaps the most well-known investment option, offering the potential for high returns but also carrying significant risk. When you buy a stock, you're essentially buying a piece of ownership in a company. However, the value of your investment can fluctuate significantly depending on the company's performance and overall market conditions.

Investing in stocks also requires careful research and a good understanding of market dynamics. Additionally, it's crucial to analyse a company's financial health, industry trends, and competitive landscape before investing. To mitigate the risk, you can try diversifying your stock portfolio across different sectors and companies.

>> See the best SG stocks investment brokerage accounts

Best for: Stocks are ideal for long-term investors with a higher risk tolerance and are comfortable with market volatility. They’re also perfect for those seeking the potential for high growth.

Where to buy: Stocks can be bought through the SGX or brokerage platforms like OCBC Securities and DBS Vickers.

Dividend stocks are a preferred investment option for investors in Singapore seeking regular income from their investments. These stocks represent shares of ownership in companies. Dividend stocks also offer the potential for both regular income and long-term capital appreciation.

As mentioned, investing in dividend-paying stocks can provide a steady stream of passive income. Additionally, dividend stocks has the potential for long-term growth, as the value of the underlying company may increase over time. Reinvesting dividends can also lead to compounded growth, further enhancing returns.

>> Learn more about high-dividend stocks and how to invest in them

Best for: Dividend stocks are ideal for income-focused investors seeking consistent payouts and the potential for long-term growth. They are also particularly suitable for retirees or those seeking to reinvest dividends for compounded growth.

Where to buy: Dividend stocks can be purchased on the SGX or  through brokerage platforms like OCBC Securities, UOB Kay Hian, or DBS Vickers. You can also invest in dividend-focused funds through unit trust platforms.

Are you eager to explore the investment options above? Look for the best brokerage accounts or speak with a finance expert to determine the ideal investment plan for your individual needs and circumstances. Remember, diversification and understanding your risk tolerance are key factors in achieving your investment goals.