Singapore Treasury bills (T-bills)

[henrylbh]

If you just leave the matured t bill funds in the banks cpfia account, it will only auto go back to cpf after two months?

That's what the agent bank say. But they still pay you pittance till they auto transfer to your CPF

 

[henrylbh]

I think it could go down to 3.5% on average in 2023.

Should be coming down as more ordinary people got wind of T-bills paying better the ordinary deposits in bank. There are still 787b in bank deposits compare to 184b in CPF OA,

 

[henrylbh]

Give this kind of advice. No wonder tbill rates going down !

A good rule of thumb to ensure you get what you want and accept whatever the cut-off yield bid 50% of the last cut-off yield. In this case, you can bid 1.95%. Whether the final cut-off yield is at 2% to 4.3%, your 1.95% bid will help secure the full allocation you need.



https://investmentmoats.com/uncateg...ber_2022_investment_moats&utm_term=2022-12-02

Coffee shops uncles told me that too
Just bid 2.6 and sure get more....lol
Many pple agree with him

You will be surprise that many have savings in ordinary accounts, including yet to mature FDs with low interest, especially with their trusted local banks .... until they realised that whatever T-bill pays whatever rate is better than their trusted banks.

 

[Ahboy069]

This round shd bit at least 3.96 otherwise may as well go for comb fd

 

[WHLN17]

My view is that those aiming for at least 4% can forget it liao. I could be wrong but SSB rate already trending down, bond prices in secondary market already creeping up, Fed is likely to adopt a more dovish stand on 14 Dec and going forward. Maybe after all, CPFOA monies matter little. It is time to look at stock market again especially REITs.

 

[Geralt]

If you just leave the matured t bill funds in the banks cpfia account, it will only auto go back to cpf after two months?

Yes.

 

[glorfindel]

Given the same interest between t-bills and FD, which would you guys pick?

 

[royalmix]

Given the same interest between t-bills and FD, which would you guys pick?

Neither cos I can earn more than 5% in RHB savings account!

 

[maumu]

Given the same interest between t-bills and FD, which would you guys pick?

Thing is, you won't know what is the rate until the bill is auctioned. By then it's too late (to buy) to compare with a FD.

 

[glorfindel]

Neither cos I can earn more than 5% in RHB savings account!

That's only the incremental balance right? Does it only apply in the month you top up? As in, you top up 10k in Dec, only give you interest for Dec.

 

[glorfindel]

Thing is, you won't know what is the rate until the bill is auctioned. By then it's too late (to buy) to compare with a FD.

Can always make a competitive bid one day before auction. If below cutoff then just go to FD

 

[maumu]

Can always make a competitive bid one day before auction. If below cutoff then just go to FD

then I don't know what's the purpose of your question.

 

[glorfindel]

then I don't know what's the purpose of your question.

If prefer T-bill then bid lower. If not then bid at a premium to FD. That's the point

 

[maumu]

If prefer T-bill then bid lower. If not then bid at a premium to FD. That's the point

Were you not asking a question? Or you're just trying to lure some kind of a statement of your own?

Anyway, enough. Just do what you like. Won't respond further to you.

 

[glorfindel]

Were you not asking a question? Or you're just trying to lure some kind of a statement of your own?

Anyway, enough. Just do what you like. Won't respond further to you.

I don't get it why you are so set off by my question. I am trying to gather which is better over the other so I can make a better decision.

 

[F1ngolf2012]

But I think in this case, he got awarded the T-bill which he should not have gotten because his bid was just a bit higher than the cut-off yield, so in a sense he did benefit from the bank's error. Even without considering the $50. If he was supposed to get the T-bill and didn't, then there would be a better case to pursue Fidrec.

Whether the customer gotten the longer or shorter end of the stick is a separate matter. The real issue is an esteemed and trusted bank (or could be MAS) goofed up on the most fundamental task of T-bill allocation.
This casts doubt on the bank backend operation. Some critical customers may ask what else potentially could they goof up? Interest calculations, deposit balances, fund transfers, etc....

If DBS did not think this is an issue serious enough which may lead to non-compliance, I doubt the letter of apology and $50 token offer would have been sent. Perhaps, that was why it took them 3 months to come to this decision.

 

[F1ngolf2012]

will not do that, why trouble ourselves and wasting time with Fidrec since not loss anything

Pardon me for saying this. This is exactly the type of customers the banks want.

 

[lzydata]

Given the same interest between t-bills and FD, which would you guys pick?

As I see it now, FDs have the advantage over T-bills. You can place them whenever you are ready to, whether it is spending a few hours queuing at UOB, or just a few minutes placing it online at CIMB (if you already have an account with them). You know what the yield is beforehand. And there are multiple tenors available, not just 6 months.

T-bills still have the advantage of lower minimums. Cons: have to wait till the next auction, uncertainty about yield (but you can bid competitive).

 

[F1ngolf2012]

Coffee shops uncles told me that too
Just bid 2.6 and sure get more....lol
Many pple agree with him

I thought you would update the uncles that it should be 1.95% based on https://investmentmoats.com/uncateg...ber_2022_investment_moats&utm_term=2022-12-02

 

[demoforce1]

Pardon me for saying this. This is exactly the type of customers the banks want.

yes, be a good citizen and be grateful