🍍Lai lai huat ah buy T-Bills
What is this T-Bills?
Singapore’s Treasury Bills (aka T-Bills), backed by our awesome and prudent Singaporean government, are a prime choice for risk-averse investors. These short-term debt securities offer capital preservation, low risk, and predictable returns, making them an excellent option for those seeking safety and stability in their investments. Especially during these uncertain times with rising interest rates, the current T-bills have better rate of return than bank’s interest. The Government issues 6-month and 1-year T-bills.
How do I buy T-Bills as part of my investment plan?
The 6-month T-bills are issued every two weeks (as of the date of this article we are in the reverse interest rate era, where shorter investment results in higher interest rates), the 1-year T-bills are issued every three months.
Check out the Auctions and Issuance Calendar for details on the latest T-bill issuances.
You can buy the T-bills using cash, supplementary retirement scheme (SRS) funds, or CPFIS Investment scheme funds.
💰 Cash
To buy T-bills using cash, you need a bank account with one of the three local banks (DBS/POSB, OCBC, and UOB).
You will also need an individual Central Depository (CDP) account with direct crediting services activated. This is to allow your coupon (meaning your interest income) and principal payments (your capital money) to be credited directly to your bank account.
Once prepared, you can apply for the T-bills through your banks (DBS/POSB, OCBC, and UOB) outlet or the banking app.
If successful, the transaction would be reflected on your CDP statement in 2-3 working days.
CPF Investment Scheme (CPFIS)
You can use your CPF’s ordinary account to buy T-Bills, especially in this current era where T-bills are around 3%-4%, while your CPF OA is paying 2.5% only.
You would need a CPF Investment Account with one of the three CPFIS agent banks (DBS/POSB, OCBC, and UOB).
You can apply online, depending what banks you are using:
If all fails, you can submit an application in person at any branch of the CPFIS bond dealers (DBS/POSB, OCBC, and UOB) when buying using your CPFIS-OA account.
