This is one out of two series where you can level up your CFP money.
Uncle’s Guide: How to Use Your CPF to Buy T-Bills in Singapore
Ah, investing with CPF money. Not as complicated as you might think, so let Uncle break it down for you. If you’re wondering how to use your CPF to buy Treasury Bills (T-bills), follow these steps, ok? Don’t worry, it’s not rocket science, but you must follow properly or else, headache later.
(yes, uncle know how to use AI for this)
Step 1: Are You Eligible?
First things first, are you Singaporean or Permanent Resident? Good, that’s sorted. Now, check your CPF Ordinary Account (OA) – you need to have at least $20,000 inside after this investment. Don’t go using all your CPF, need to leave some buffer. Ok, still good? Let’s go.
Step 2: Open CPF Investment Account (If You Haven’t)
Next, you need a CPF Investment Account. No account, no talk. Go and open one with any of the CPFIS-approved banks: DBS/POSB, OCBC, or UOB. This is where your T-bills will sit quietly after you buy them.
Step 3: Make Sure You Have Enough Funds
Quick check – do you have enough cash in your CPF OA to make this investment? Go and log in to CPF and see how much you can use for investments (there’s this option called “Amount available from Ordinary Account for professionally managed products”). Got enough? Ok, we move on.
Step 4: Pick Your T-bill
Now it’s time to choose which T-bill you want to buy. There are usually two types: the 6-month T-bill and the 1-year T-bill. You decide which one fits you better, lah. Both are issued by the government, so it’s pretty safe.
Step 5: Submit Your Application
Here’s the fun part, submitting your application. Just like ordering online, but for investments. So, this is how you do it:
Log in to your bank’s internet banking (either DBS/POSB, OCBC, or UOB).
Go to the investment section and look for “SGS” or “T-Bills.”
Choose the issuance code for the T-bill you want.
Now, you decide if you want to place a competitive or non-competitive bid.
If you’re the kind who likes things simple, just go for the non-competitive bid lah. Put your investment amount (in multiples of S$1,000), confirm everything looks good, and hit submit. Cannot anyhow make mistake here because once you submit, no take-backs.
Step 6: After the Application
Now you just wait for the auction results. The results will be out either one or two days before the auction date. You can check on the MAS website or log into your bank’s platform to see how you did.
If successful: Congrats! Your CPF OA will automatically be debited, and your T-bills will be credited to your investment account three days after the auction.
If not: No worries, the money will be refunded to your CPF OA in one or two days.
Step 7: When T-bills Mature
Fast forward six months or one year, and your T-bills will mature. Time to collect your money, but be quick lah. Transfer the proceeds back to your CPF OA as soon as possible – if you leave it hanging, no interest will be paid on that money. You can do this online, so it’s pretty easy.
Also, don’t forget to monitor your investments. Check your statements and the CPFIS dashboard once in a while to see what’s happening with your T-bill holdings.
There you go, simple right? Just follow these steps, and you’ll be able to make use of your CPF money to buy T-bills easily. Good luck, and remember, slow and steady wins the race!
