Singapore Treasury bills (T-bills)

[Mickey01]

What a screwed up bank is DBS? They sent me this email almost after 3 months.....

******************************

Dear Mr XXXXXXXXXXX,

Singapore Government Bond/T-Bill dated 27th August 2022.

With regards to your Singapore Government Bond/T-Bill application on 27th August 2022 using SRS funds, there was an error whereby securities were allotted to you even though your competitive bid of 3% is higher than MAS cut off yield of 2.99%. As such, your Government Bond/T-Bill will mature on 7th March 2023.

We are very sorry for this and would like to offer you S$50 as a token of apology. The amount will be credited to your deposit account ending with XXXX by mid of December.

If you have any other queries, feel free to reach out to me or call our DBS Hotline.

*******************************

so you get to enjoy 2.99% for 6 months + a gift of $50? I don't mind the screw up if I were you. I will be furious if they sell off my T bill in the secondary market due to this error of allocation

 

[sgbird]

Can I check with you guys what is the CPF interest formula for now? I want to see whether CPF will increase interest in Jan 2023 before I dump in my CPF. Many thanks!

 

[TehSi99]

What a screwed up bank is DBS? They sent me this email almost after 3 months.....

******************************

Dear Mr XXXXXXXXXXX,

Singapore Government Bond/T-Bill dated 27th August 2022.

With regards to your Singapore Government Bond/T-Bill application on 27th August 2022 using SRS funds, there was an error whereby securities were allotted to you even though your competitive bid of 3% is higher than MAS cut off yield of 2.99%. As such, your Government Bond/T-Bill will mature on 7th March 2023.

We are very sorry for this and would like to offer you S$50 as a token of apology. The amount will be credited to your deposit account ending with XXXX by mid of December.

If you have any other queries, feel free to reach out to me or call our DBS Hotline.

*******************************

Small mistake say sorry and close case.
Bigger mistake say very sorry and close case.

 

[vsvs24]

Can I check with you guys what is the CPF interest formula for now? I want to see whether CPF will increase interest in Jan 2023 before I dump in my CPF. Many thanks!

This is really not a good time to topup CPF. Can get more outside riskfree and liquid

 

[lzydata]

Can I check with you guys what is the CPF interest formula for now? I want to see whether CPF will increase interest in Jan 2023 before I dump in my CPF. Many thanks!

It's already announced, no change for Jan to Mar 2023.

https://www.cpf.gov.sg/member/infoh...-march-2023-and-basic-healthcare-sum-for-2023

 

[Mickey01]

2.99% means BS22117S. The next issue cut off 3.32%. Is the $50 enough to cover the difference ?

Maybe you should tell them to take it back and return you the principal intact. Then go and apply the next one since rate higher now.

I guess we should not kill the messenger who deliver the bad news. Yes, the biggest mistake here is DBS inform the customer almost 3 months late. But who discover this error (DBS or MAS) and DBS being his SRS operator has to inform the customer and offer a $50 gift as apology.
If the online application is what we think it is (all the e applications with DBS, UOB, OCBC are uploaded to the aggregator MAS electronically without massage), and MAS is the one who is in charge of the allocation, then perhaps it is MAS error and not DBS error.
CPF Tbills application via paper application is a different story as there is a certain amount of text (from paper application form) to data conversion done some point in time before it is being aggregated with the online applications.

 

[sgbird]

It's already announced, no change for Jan to Mar 2023.

https://www.cpf.gov.sg/member/infoh...-march-2023-and-basic-healthcare-sum-for-2023

Thank you so much! So no doubt to dump in all my cpf OA savings

 

[sgbird]

This is really not a good time to topup CPF. Can get more outside riskfree and liquid

I have no choice. Topup for tax saving

 

[vsvs24]

It's already announced, no change for Jan to Mar 2023.

https://www.cpf.gov.sg/member/infoh...-march-2023-and-basic-healthcare-sum-for-2023

Wah. You very updated. This press release was just released yesterday

 

[konan~]

I have no choice. Topup for tax saving

Actually you have a choice and you have chosen topup for tax saving because it is a better deal.

 

[yumsang]

I am one of those who bidded 3.88%.

Cause using my SRS, don't know where to put it, so 3.88% better than 0.05%

where do you check the record of how many units allotted to you

 

[vsvs24]

I guess we should not kill the messenger who deliver the bad news. Yes, the biggest mistake here is DBS inform the customer almost 3 months late. But who discover this error (DBS or MAS) and DBS being his SRS operator has to inform the customer and offer a $50 gift as apology.
If the online application is what we think it is (all the e applications with DBS, UOB, OCBC are uploaded to the aggregator MAS electronically without massage), and MAS is the one who is in charge of the allocation, then perhaps it is MAS error and not DBS error.
CPF Tbills application via paper application is a different story as there is a certain amount of text (from paper application form) to data conversion done some point in time before it is being aggregated with the online applications.

Allocating tbill when competitive bid is above cutoff is a fundamental and serious mistake.

 

[oceanicmanta]

Allocating tbill when competitive bid is above cutoff is a fundamental and serious mistake.

for DBS, there is no record of the application details, so there is no way for customers to check if error (ie wrong bid) was with the application itself

 

[TehSi99]

This is really not a good time to topup CPF. Can get more outside riskfree and liquid

Depends.

CPF top up is more targeted at tax reduction. That is the main message I am getting whenever I read the official CPF top-up.

It will be double digit income tax % when chargeable income crosses above 80K.

 

[yumsang]

those who happen to invest with cpfsa, the only place to check how much allotted is just your CPF SA portfolio

 

[konan~]

2.99% means BS22117S. The next issue cut off 3.32%. Is the $50 enough to cover the difference ?

Maybe you should tell them to take it back and return you the principal intact. Then go and apply the next one since rate higher now.

Wah, you really can keng kow leow

 

[mikezuper]

for DBS, there is no record of the application details, so there is no way for customers to check if error (ie wrong bid) was with the application itself

Thats why I applied thru atm and there is a paper receipt. If apply online, should take screenshot.

 

[churnmaster]

But the 12 week MAS bill is only 4.5% pa. And T-bill benchmark quoted yields have not budged recently too.

Yeah, even I was surprised to see such a big difference in the 2 yields.

Anyways, I was expecting either FSMOne or one of the robo advisers, to come up with a product / fund that allows retail to indirectly participate and benefit from these yields.

 

[ahnyaahnya]

Can I check with you guys what is the CPF interest formula for now? I want to see whether CPF will increase interest in Jan 2023 before I dump in my CPF. Many thanks!

CPF OA unless they change the formula, or the 3 local banks stop raising money via promo FD rates, and increase board rates instead, there's no way that OA interest rate will increase

 

[vsvs24]

Wef Dec, if have $100,000, salary credit of at least $1600 and credit card spend $500, UOB One can get 5%. Interest is tiered so 5% only if exact $100,000.

Better than tbills at the current pull down rate situation.

https://www.uob.com.sg/personal/save/everyday-accounts/one-account.page
Esaver also increase to 3.8%. RHB bank also increase. Now a lot more choice than tbill.

I am going to take a break from tbills. Ladder already broken since did not get last issue