Passive income in Singapore: what pays a regular return, and what each one asks of you
Passive income in Singapore is money that arrives without your daily work: interest, dividends, rent or payouts. Almost all of it asks for something first, whether that is a large sum of savings, some risk to that sum, or hours of work up front. Which one fits depends on what you can give.
This guide compares the main sources by who owes you the money, how long it is tied up and what protects it. It is not financial advice, and for a large sum a licensed adviser can look at your own case. It quotes no rates, because they move. GetBackedBy's notes and their current terms are on its Invest & Borrow page.
How much money passive income in Singapore takes
To work out the sum, take the income you want in a year and divide it by the yearly return. The rates below are invented, for the arithmetic only.
| Income you want | In a year | Sum needed at an example 3% | Sum needed at an example 6% |
|---|---|---|---|
| 100 a month | 1,200 | 40,000 | 20,000 |
| 500 a month | 6,000 | 200,000 | 100,000 |
| 1,000 a month | 12,000 | 400,000 | 200,000 |
| 100 a day | 36,500 | about 1.2 million | about 610,000 |
The last column needs less money because it assumes a higher return, and that return carries more risk. "Higher returns always come with higher risk," says MoneySense, the national financial education programme. It suggests judging your appetite for risk by how much you can afford to lose, and spreading your money so that one loss does less damage.
Few people have those sums to hand. Most build up over years, adding savings and reinvesting what they earn, so the first years pay very little.
Interest: you lend, and someone owes you
With these, you lend your money and someone promises it back with interest. The difference is who that someone is. MoneySense explains fixed deposits and bonds, and the Monetary Authority of Singapore (MAS) explains T-bills, savings bonds and government bonds.
| Where it sits | Who owes you | How it pays | How long it is tied up | What protects it |
|---|---|---|---|---|
| Fixed deposit | A bank or finance company | Interest at the agreed rate | Until maturity. Leaving early can cost the interest, and a fee could leave you with less than you put in | Deposit insurance, up to a limit |
| T-bill | The Singapore Government | Bought below face value, repaid at face value at the end | Six months or one year. Selling early gets the market price | Backed by the Government |
| Singapore Savings Bond | The Singapore Government | Interest every six months, rising each year | Up to ten years. You can redeem in any month with no penalty | Backed by the Government, and you get your principal back |
| Singapore Government bond | The Singapore Government | A fixed coupon every six months | Two to fifty years. Selling early gets the market price | Backed by the Government |
| Corporate bond | A company | A regular coupon | To the end date. Selling early gets the market price | The company's ability to pay. No deposit insurance |
| GetBackedBy note | GetBackedBy Pte. Ltd. | Simple interest that builds up day by day. Take it out along the way, above a set minimum, or with the principal at the end | A fixed term that starts when the money is confirmed. The principal stays until the term ends | The company's promise to pay. No deposit insurance, and the capital is at risk |
Deposit insurance covers Singapore-dollar deposits up to one hundred thousand dollars per depositor at each bank or finance company (read on 5 November 2026). It does not cover investment products.
A note is money you lend to GetBackedBy Pte. Ltd. for a fixed term at a fixed return. It is an obligation of the company. It is not a bank deposit, it is not covered by deposit insurance, and your capital is at risk, so you can lose some or all of what you place.
Lending through an online platform, which MoneySense calls lending-based crowdfunding, also pays interest. MoneySense warns that you could lose some or all of your capital, and that you may be unable to get out when you want to.
If you are after a monthly income investment, read the "how it pays" column closely. A T-bill pays nothing until the end, and savings bonds and government bonds pay twice a year. With a fixed deposit, MoneySense says to ask when the interest is credited.
Dividends and distributions: you own a piece
Buy a share and you own a small part of a company. Buy a unit in a REIT, a real estate investment trust, and you hold a slice of a pool of properties. Nobody owes you anything here. A dividend can fall or stop, and the price of what you hold moves every trading day.
MoneySense on REITs says "Distributions are not guaranteed and are subject to fluctuations in the REIT's income". Rents can fall, buildings can sit empty, and borrowing can cost the trust more.
Unit trusts and exchange-traded funds spread your money across many holdings, for a fee. All of these need money you can leave alone for years and patience with swings, plus some homework, or a fee to someone who does it for you.
Rent: you own the whole thing
Rent asks for the most money up front: a property, usually with a loan behind it. Then it asks for time, with tenants to find, repairs to arrange, empty months to cover and perhaps an agent to pay. HDB flats also have their own rules, and renting one out starts with HDB's approval.
Payouts: savings set aside for later
CPF LIFE is a government-backed annuity scheme run by the CPF Board. It pays monthly for as long as you live, once payouts begin, and in return the savings go in and stay in.
Insurers sell annuities and income plans too. Ask about the lock-in period, what it costs to leave early, and which part of the payout is promised and which is only projected.
Things you make once
A blog, an e-book, an online course, stock photos or an app can keep paying after the work is done, and they take little money to start. They take time instead, often a lot of it, with no promise of anything back. Driving for a ride-hailing app or running a shop, which some lists include, is simply a job.
Which of these are taxed
Tax differs by source. This is what IRAS says, read on 5 November 2026.
- Not taxable for most individuals: interest on deposits with approved banks and licensed finance companies, and on debt securities such as bonds, unless held through a partnership or a trade.
- Also not taxable for most individuals: one-tier dividends from Singapore-resident companies, and REIT distributions.
- Taxable: rent, after allowable expenses, and interest from "Loans to companies, persons, etc."
A note is a loan to a company, so that last line is the one to read, and IRAS or a tax adviser can answer for your own case. MAS says interest on savings bonds and T-bills is tax-exempt for individuals.
Five checks before you put money in
- Who owes you, or what you are relying on. A bank, the Government and a company are different promises.
- What happens if they cannot pay, or the market falls.
- How soon you can get the money out, what that would cost, and what bills are coming before then.
- Whether the payout is promised, or only projected.
- How much of it you could afford to lose.
A promise of high returns with little risk is a warning sign. You can look up a firm in MAS's Financial Institutions Directory. Its Investor Alert List is worth a look too, though MAS says that list is not exhaustive.
To see what a monthly target would take with a note, open How much do I need to invest? on the free Money tools. Type your target and a term, and it shows about how much to place, the interest and what comes back.
Questions
How much money do I need to make 1,000 a month in passive income?
Divide the 12,000 a year by the yearly return. At an example return of 3% that is 400,000, and at 6% it is 200,000. The smaller sum comes with higher risk, so the sum alone does not settle it.
What are 10 examples of passive income?
Five come from lending: a fixed deposit, a T-bill, a Singapore Savings Bond, a government or corporate bond, and a company's note. The other five are dividends from shares, distributions from a REIT, rent from a property, annuity payouts such as CPF LIFE, and royalties from something you made once. Each asks for money, risk or time up front.
How can I make 100 a day in passive income?
That is 36,500 a year, which at an example return of 5% takes about 730,000. Most people would need many years to build up a sum like that. Anyone promising that income from a small sum is describing a large risk or a scam.
Is passive income taxed in Singapore?
It depends on the source. IRAS lists interest on deposits with approved banks, one-tier dividends from Singapore companies and REIT distributions as generally not taxable for individuals. Rent after expenses, and interest from loans to companies or persons, are taxable. IRAS can answer for your own case.
Is a company note the same as a fixed deposit?
No. A fixed deposit is money held by a bank or finance company and is covered by deposit insurance up to a limit. A note is money lent to a company. It is an obligation of that company, it is not a bank deposit, it has no deposit insurance, and the capital is at risk.
Which passive income is best in Singapore?
That depends on what you have to give: money, time or tolerance for risk. Weigh who owes you, how soon you may need the money, whether the payout is promised or only projected, and how much you could afford to lose. A licensed adviser can look at your own figures.
Published .