Singapore Treasury bills (T-bills)

[sohguanh]

As you will have to spend at least 2 hours+ to go down and do the trascation physically at the main branch. Its time/effort against rewards to consider.

If you are retired no longer working and the tenure is for 5/10 years for big sum of monies maybe viable.

CPF investment usually incur txn charge and a quarterly fee.

 

[a4973]

If you are retired no longer working and the tenure is for 5/10 years for big sum of monies maybe viable.

CPF investment usually incur txn charge and a quarterly fee.

May I know CPF investment quarterly fee is it charged every quarter regardless of whether there is any activity? Thanks

 

[reddevil0728]

May I know CPF investment quarterly fee is it charged every quarter regardless of whether there is any activity? Thanks

i provided 2 links above where it is stated. check it out

 

[vsvs24]

Nowadays a lot of resources online. don't really need to call. A lot of times CSO also aren't sure about such stuff especially when it is not as common.

https://www.dbs.com.sg/personal/investments/srs-and-cpf/cpf-investment-account > Find "Schedule of charges"

https://www.ocbc.com/personal-banking/investments/cpf-investment-account > Find "Fees"

that's why only worth if it can be done conveniently. but then again some ppl like to optomise till the last drop

Wow. For CPFIS, DBS charges $2.50 per transaction for :

S’PORE GOVT SECURITIES
- For every purchase, sale and interest received.

Interest on SGS is paid half yearly...so will kena charges.

 

[gladtoknowmore]

try this?

Subscriber Services
html div

www.mas.gov.sg
may not be 100% related..
anyway T-bill is just going to be fortnightly for the 6m version. why not just set reminders?

thanks! but this doesn’t seem to alert for sgs and t-bill. ah din know it’s fortnightly. ok!


Read HWZ Forum Rules!

 

[reddevil0728]

thanks! but this doesn’t seem to alert for sgs and t-bill. ah din know it’s fortnightly. ok!


Read HWZ Forum Rules!

such inform is all on their website. so recommendation is always to check out their website.

there's also an issuance calendar where you can see.

 

[Nofear40]

Interesting thing about the daily SGS Prices published. Did my eyes crossed and see inverted yields?

Treasury Bills

6-Mth

1-Year

Issue Code Coupon Rate Maturity Date	BS22112V 27 Dec 2022	BY22101N 18 Apr 2023

23 Jun 2022

2.27

2.18

Looking at the rates, seem to be better to invest in T bills than SSB?

 

[sohguanh]

Wow. For CPFIS, DBS charges $2.50 per transaction for :

S’PORE GOVT SECURITIES
- For every purchase, sale and interest received.

Interest on SGS is paid half yearly...so will kena charges.

That is why I invest CPF using FSM seldom go for bond like instruments as interest too low for me to take the risk of 2.5% safety. I usually use it for equities or balanced fund that are more risky to get higher than 2.5% and those fees

 

[sohguanh]

Looking at the rates, seem to be better to invest in T bills than SSB?

T-bill has short tenure only 6,12 months unlike SSB as hold longer it give more interest and beat T-bill in later years. Also T-bill cannot like SSB every month redeem if want

Edit: Technically can sell T-bill before maturity in SGX but there not much buyers. Next is find a way to sell to those dealer banks involved in T-bill auction how is the process like etc will they give good price?

 

[CaptainWu]

If you are retired no longer working and the tenure is for 5/10 years for big sum of monies maybe viable.

CPF investment usually incur txn charge and a quarterly fee.

Say for 50k the $7.5 or $5 per year reduce the interest rate for 0.015% or 0.01%. Personally I think its minor as I am target at least 3%+ bond's interest rate to justify, with at least 0.5% more that CPF-OA. I would more concern if interest rate hikes push CPF OA's rate higher than 3% ....

 

[sohguanh]

Say for 50k the $7.5 or $5 per year reduce the interest rate for 0.015% or 0.01%. Personally I think its minor as I am target at least 3%+ bond's interest rate to justify, with at least 0.5% more that CPF-OA. I would more concern if interest rate hikes push CPF OA's rate higher than 3% ....

I ask this before and reddevil say CPF rates is based on formula not sentiment. Now that formula hmmm anyone know how it works?

Now T-bill SSB CPF rates we keep asking will it rise further? It is precisely no confirm that make our decision planning tough.

Once you decide hope to see you reply here

 

[reddevil0728]

I ask this before and reddevil say CPF rates is based on formula not sentiment. Now that formula hmmm anyone know how it works?

https://www.cpf.gov.sg/member/growi...ng-higher-returns/earning-attractive-interest

Ordinary Account interest rate​

Interest rate from 1 July 2022 to 30 September 2022: 2.5% per annum
Reviewed quarterly, this rate is computed based on the 3-month average of major local banks' interest rates1 (subject to the legislated minimum interest of 2.5% per annum).

1 0.09% for the period from February 2022 to April 2022

Special Account and MediSave Account interest rates​

Interest rate from 1 July 2022 to 30 September 2022: 4% per annum
Reviewed quarterly, this rate is computed based on the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%2 (subject to the current floor interest rate of 4% per annum3).

2 2.72% for the period from May 2021 to April 2022.

3 In view of the continuing low interest rate environment, the Government will further extend the 4% floor rate for interest earned on all Special, MediSave and Retirement savings until 31 December 2022.

Now T-bill SSB CPF rates we keep asking will it rise further? It is precisely no confirm that make our decision planning tough.

Once you decide hope to see you reply here

until Feds say they will stop rising rates, it should continue

 

[CaptainWu]

I ask this before and reddevil say CPF rates is based on formula not sentiment. Now that formula hmmm anyone know how it works?

Now T-bill SSB CPF rates we keep asking will it rise further? It is precisely no confirm that make our decision planning tough.

Once you decide hope to see you reply here

CPF interest rate is computed as reddevil0728 quoted previously the statement, just that we have no transparency on the bank average 3-mth rates. I will observe interest rate's trend for another two months before making decision as I am target for the Aug issue (5 years), see how

 

[stephenbishop]

just that we have no transparency on the bank average 3-mth rates.

Per the dollarsandsense website (https://dollarsandsense.sg/heres-cp...-calculated-rates-almost-never-actually-earn/) the 3-month average of major local banks’ interest rates is computed using the average interest earned on 12-month fixed deposits (FD) and savings deposits (SD) across DBS, OCBC and UOB, with a weighting of 80FD:20SD. Not sure of the official source of this info.

 

[reddevil0728]

Per the dollarsandsense website (https://dollarsandsense.sg/heres-cp...-calculated-rates-almost-never-actually-earn/) the 3-month average of major local banks’ interest rates is computed using the average interest earned on 12-month fixed deposits (FD) and savings deposits (SD) across DBS, OCBC and UOB, with a weighting of 80FD:20SD. Not sure of the official source of this info.

should be legit... they sourced it. but link no longer working but i managed to dig....

https://www.cpf.gov.sg/member/infoh...-march-2020-and-basic-healthcare-sum-for-2020

 

[CaptainWu]

Thanks both. Look at the current rates and likely SG needs to raise at least 1.5% then there is a chance for CPF-OA to catch up at the 2.5% level. So far the 3 local banks seem with no adjustment to the 0.75% hike yet, probably wait till the next US raise at the end July see whether they will do any adjustments.

 

[V_for_Vanilla]

Think depends whether FED will raise rates in July.

 

[reddevil0728]

Think depends whether FED will raise rates in July.

I think that’s a foregone conclusion unless there’s another black swan event.

the qns is how much

 

[digisales]

One pays a coupon for the yield, the other is purchased at a discount if the face value??? Which I already mentioned above?

did more reading on the terms used.
SGS: pays principle + interest after maturity
T-bills: refunds the discounted amount after auction closes, and pays the full principle after maturity

please correct me if I am wrong. thank you.

 

[reddevil0728]

did more reading on the terms used.
SGS: pays principle + interest after maturity
T-bills: refunds the discounted amount after auction closes, and pays the full principle after maturity

please correct me if I am wrong. thank you.

Yep