Deposits vs SBN Retail vs Money Market Mutual Funds: Which is Right for Indonesian Investors in 2026?

As the BI-Rate remains steady at 4.75% in 2026, Indonesian investors are faced with a crucial decision: where to place their funds for optimal returns while managing risk. This article compares three popular investment options: deposits, SBN retail, and money market mutual funds, helping you make an informed choice.

Quick Comparison Table

What are Deposits?

Deposits, or time deposits, are savings accounts with fixed interest rates and maturity dates. They are considered low-risk investments but come with penalties for early withdrawal.

Pros

• Fixed returns
• Low risk
• Insured by LPS (Lembaga Penjamin Simpanan)

Cons

• Low liquidity
• Penalties for early withdrawal

What is SBN Retail?

SBN (Surat Berharga Negara) Retail are government-issued bonds available to individual investors. They offer fixed returns and are considered very low risk.

Pros

• Backed by the government
• Fixed, generally higher returns than deposits
• Tax-free interest

Cons

• Limited liquidity
• Minimum holding period

What are Money Market Mutual Funds?

Money market mutual funds invest in low-risk, short-term debt securities. They offer liquidity and competitive returns.

Pros

• High liquidity
• Competitive returns
• Diversified portfolio

Cons

• Not entirely risk-free
• Returns can fluctuate

Head-to-Head Comparison

Risk Level

Deposits and SBN Retail are considered very low risk, with deposits insured by LPS and SBN backed by the government. Money market mutual funds, while generally low risk, carry slightly more risk due to their investment in various debt securities.

Liquidity

Money market mutual funds offer the highest liquidity, allowing investors to access their funds quickly. Deposits and SBN Retail have lower liquidity due to penalties for early withdrawal or minimum holding periods.

Returns

SBN Retail generally offers the highest returns, followed by deposits and then money market mutual funds. However, actual returns can vary based on the specific product and market conditions.

Which Should You Choose?

Choose Deposits if:

• You prioritize absolute safety and are insured by LPS.
• You can afford to lock your money for the specified term.

Choose SBN Retail if:

• You are looking for higher returns than deposits.
• You are comfortable with a minimum holding period and understand the terms.

Choose Money Market Mutual Funds if:

• You need high liquidity.
• You are looking for a diversified portfolio with competitive returns.

The Bottom Line

The choice between deposits, SBN Retail, and money market mutual funds in 2026 depends on your financial goals, risk tolerance, and liquidity needs. For those seeking the highest returns with low risk, SBN Retail may be the best option. For liquidity, money market mutual funds are preferable. Deposits remain a safe, albeit less lucrative, choice. Always consider your personal financial situation and consult with a financial advisor if necessary.

Data collected as of early 2026.