Singapore Treasury bills (T-bills)

[a4973]

t-bills purchased using cpf-oa are not reflected in cdp. Your agent bank will send you the cpfis statement.

Thanks, this is noted. But would you know when using OA to purchase SGS Bonds in addition to the DBS investment account fee would there be a CDP fee charged as well?

 

[a4973]

DBS charged you upfront when you made the application for t-bill using cpf? For ocbc, there is no upfront charge just for application for t-bill using cpf, same as using cash.

To be clear, the full amount ie the amount I intended to invest was deducted from OA on 27 July which is the auction date itself. So what is your meaning of upfront charge?

 

[endori]

Thanks, this is noted. But would you know when using OA to purchase SGS Bonds in addition to the DBS investment account fee would there be a CDP fee charged as well?

I have not heard about this cdp fee. What is this cdp fee (presumably should be charged by cdp side and not bank) but if you buy using cash there isnt any cdp fee charged right. I havent seen any charges to my account yet will update when the first charges come in

Update: Sorry, saw my statement and there is a bank charge of $2.68 which they took from my cpfoa too.

 

[endori]

To be clear, the full amount ie the amount I intended to invest was deducted from OA on 27 July which is the auction date itself. So what is your meaning of upfront charge?

What I mean is did Dbs charge you anything extra like application fee in addition to your intended bidding amount (e.g similar to $2 imposed for ssb application)? Hmmm that is strange cos for Ocbc, only the amount less interest is deducted from oa

 

[a4973]

I have not heard about this cdp fee. What is this cdp fee (presumably should be charged by cdp side and not bank) but if you buy using cash there isnt any cdp fee charged right. I havent seen any charges to my account yet will update when the first charges come in

Update: Sorry, saw my statement and there is a bank charge of $2.68 which they took from my cpfoa too.

Ok , $2.68 is bank fee $2.50 + GST. I through DBS cpfis got charged $3.05: which the DBS CSO explained is Bank fee $2.50 + CDP fee $0.35 + GST = $3.05. are you using ocbc or UOB?

 

[endori]

Ok , $2.68 is bank fee $2.50 + GST. I through DBS cpfis got charged $3.05: which the DBS CSO explained is Bank fee $2.50 + CDP fee $0.35 + GST = $3.05. are you using ocbc or UOB?

ocbc

 

[a4973]

What I mean is did Dbs charge you anything extra like application fee in addition to your intended bidding amount (e.g similar to $2 imposed for ssb application)? Hmmm that is strange cos for Ocbc, only the amount less interest is deducted from oa

This is interesting!! Just to double confirm have you checked your CPF OA side to verify the amount deducted is truly only the amount nett of interest?
That there is no full amount deducted then the interest is subsequently credited back?

 

[endori]

This is interesting!! Just to double confirm have you checked your CPF OA side to verify the amount deducted is truly only the amount nett of interest?

Yes. It is in the statement. In short you bid a whole number say 10,000, final amount even ignoring the bank charge deducted is not the amt you bidded (it is lesser than the amount you bidded)

 

[a4973]

Yes. It is in the statement. In short you bid a whole number say 10,000, final amount even ignoring the bank charge deducted is not the amt you bidded (it is lesser than the amount you bidded)

I bid 100k, on 26 July $100003.05 was deducted , on auction date 27 July $740 being the discount was credited back to DBS CPFIS account. I then initiated refund of the $740 back to OA, on 29 July $740 was back in OA.

 

[endori]

I bid 100k, on 26 July $100003.05 was deducted , on auction date 27 July $740 being the discount was credited back to DBS CPFIS account. I then initiated refund of the $740 back to OA, on 29 July $740 was back in OA.

There is no such step needed (initiate refund back to oa) if you apply thru ocbc. The amount was only deducted from my oa on issue date (not auction date).

 

[chopra]

but didn't know CPFIS purchases gets credited to CDP... i thought it is held in the bank

i guess the “shareholder” to cdp is dbs.


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[reddevil0728]

i guess the “shareholder” to cdp is dbs.


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I don’t get this

 

[a4973]

There is no such step needed (initiate refund back to oa) if you apply thru ocbc. The amount was only deducted from my oa on issue date (not auction date).

So for the 10 year bond, your OA was only deducted the amount nett of the discount on 01 Aug 2022 which is the Issue date? That's really great, you didn't lose any CPF OA interest for July and only started losing OA interest from August based on the nett amount.

 

[chopra]

I don’t get this

dbs is e custodian for cpfis.
everything via dbs cpfis is parked under dbs account in cdp’s eyes

anyway this are my assumptions without doing any homework, so it is prolly not v factually accurate



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[endori]

So for the 10 year bond, your OA was only deducted the amount nett of the discount on 01 Aug 2022 which is the Issue date? That's really great, you didn't lose any CPF OA interest for July and only started losing OA interest from August based on the nett amount.

My post was referring to t-bills (see post #2021) and primarily what this thread was about and t-bills are only 6 months or 1 year. For you, are you referring to SGS bonds instead?

 

[reddevil0728]

dbs is e custodian for cpfis.
everything via dbs cpfis is parked under dbs account in cdp’s eyes

anyway this are my assumptions without doing any homework, so it is prolly not v factually accurate



Read HWZ Forum Rules!

Yea I really don’t think you should confuse stuff when you don’t have background and context of other CPFIS transaction and the same is of other banks.

 

[BTO_Brah]

Hey it finally appeared CDP-side!

 

[a4973]

My post was referring to t-bills (see post #2021) and primarily what this thread was about and t-bills are only 6 months or 1 year. For you, are you referring to SGS bonds instead?

Yes I had purchased 10 year SGS Bond not T-bills but I would assume that the mechanics would not be different since the mechanics of purchasing with cash are the same right? Ie bid $10k , $10k is deducted, auction closed, discount is credited back to the bank account.

 

[reddevil0728]

Yes I had purchased 10 year SGS Bond not T-bills but I would assume that the mechanics would not be different since the mechanics of purchasing with cash are the same right? Ie bid $10k , $10k is deducted, auction closed, discount is credited back to the bank account.

I’m not sure if I would assume that.

 

[sgbird]

Hi, one question to ask about using CPFIS to buy Tbill. It is worth assuming Tbill interest rate is 3%?

I check the application charge will be S$32. Anyway to get the charge lower?