US T-Bills

[lordfa9]

I have about USD $1.5k in my Transferwise and Paypal accounts, since the money is sitting there doing nothing; thinking of just buying USA T-Bills to grow my money

https://dollarsandsense.sg/guide-buying-us-t-bills-singapore-investors/

Can someone who has invested via TreasuryDirect share their experience?

Is it very troublesome to get an account and tax ID?

 

[reddevil0728]

I have about USD $1.5k in my Transferwise and Paypal accounts, since the money is sitting there doing nothing; thinking of just buying USA T-Bills to grow my money

https://dollarsandsense.sg/guide-buying-us-t-bills-singapore-investors/

Can someone who has invested via TreasuryDirect share their experience?

Is it very troublesome to get an account and tax ID?

Don’t think is worth the effort for 1.5k

Even for IBKR, might not be worth the effort when the amount is so small as the commission is like $5

 

[RedsYWNA]

I have about USD $1.5k in my Transferwise and Paypal accounts, since the money is sitting there doing nothing; thinking of just buying USA T-Bills to grow my money

https://dollarsandsense.sg/guide-buying-us-t-bills-singapore-investors/

Can someone who has invested via TreasuryDirect share their experience?

Is it very troublesome to get an account and tax ID?

The amounts are just too small. Just choose option 3 in the article if you want US T-bills. SGOV is a popular ETF.

 

[BBCWatcher]

I have about USD $1.5k in my Transferwise and Paypal accounts, since the money is sitting there doing nothing; thinking of just buying USA T-Bills to grow my money
https://dollarsandsense.sg/guide-buying-us-t-bills-singapore-investors/
Can someone who has invested via TreasuryDirect share their experience?
Is it very troublesome to get an account and tax ID?

If you don't have a U.S. Social Security Number (SSN) then forget TreasuryDirect. Also, T-Bills won't grow your U.S. dollars very quickly. They are the world's #1 safest vehicles for parking U.S. dollars — and with the comparatively low yields to go along with their safety. As it happens nominal U.S. dollar interest rates are broadly "high" right now, but that could mean other vehicles are "cheap."

The amounts are just too small. Just choose option 3 in the article if you want US T-bills. SGOV is a popular ETF.

Yes, but SGOV is U.S. listed/traded and not a great choice for tax-related reasons. Unless you happen to be a U.S. person, in which case you would presumably have a SSN and be able to buy U.S. Treasuries (and U.S. Savings Bonds) directly via TreasuryDirect.

 

[RedsYWNA]

Yes, but SGOV is U.S. listed/traded and not a great choice for tax-related reasons. Unless you happen to be a U.S. person, in which case you would presumably have a SSN and be able to buy U.S. Treasuries (and U.S. Savings Bonds) directly via TreasuryDirect.

IBKR will withhold first and refund the full amount later, albeit it could be up to a year's time.

"Certain iShares and BlackRock Funds generate qualified interest income and short-term capital gains that may be exempt from United States withholding tax when distributed to non-U.S. holders. The U.S. tax law permits a regulated investment company (“RIC”) to designate the portion of distributions paid that represent interest-related dividends (commonly referred to as qualified interest income) and short-term capital gain dividends as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation."

 

[BBCWatcher]

IBKR will withhold first and refund the full amount later, albeit it could be up to a year's time.

Yes, that's part of the story. SGOV is also U.S. estate taxable. Admittedly US$1.5K of SGOV isn't (by itself) of any U.S. estate tax concern, but when combined with other U.S. estate taxable assets it could be of concern.

 

[tangent314]

You can use IB01 to bypass all the withholding and estate. It's also accumulating but you can choose distributing (IBTU) if you want.

 

[rubicon]

just buy direct on interactive brokers

 

[sglandscape]

just buy direct on interactive brokers

Cannot buy direct in the primary market, but can buy those in the secondary market

 

[lordfa9]

If you don't have a U.S. Social Security Number (SSN) then forget TreasuryDirect. Also, T-Bills won't grow your U.S. dollars very quickly. They are the world's #1 safest vehicles for parking U.S. dollars — and with the comparatively low yields to go along with their safety. As it happens nominal U.S. dollar interest rates are broadly "high" right now, but that could mean other vehicles are "cheap."

so means the article is wrong?

because Singaporean naturally wont have US SSN

 

[tangent314]

Article isn't wrong. It says foreigners can open a TreasuryDirect account with a TID/SSN and a US bank account. You need a US address too, but that's probably a requirement already to open a US bank account.

Of course the article did not mention that for a foreigner to have a SSN, they will need to be have been eligible to work in the US at some point of time, typically through a work visa.

 

[BBCWatcher]

Article isn't wrong. It says foreigners can open a TreasuryDirect account with a TID/SSN and a US bank account. You need a US address too, but that's probably a requirement already to open a US bank account.

You need 3 basic pieces of information to open a TreasuryDirect account: a SSN (an ITIN isn't enough for an individual), a U.S. postal address (not necessarily "yours," but at least where you could receive written correspondence in a pinch), and a U.S. bank or U.S. credit union account (the ABA routing number and account number). It's possible but not guaranteed that accounts connected to the ACH network such as a Wise account or an American Express Bluebird account are acceptable for these purposes. If you don't have all 3 of these items then you cannot open a TreasuryDirect account.

Of course the article did not mention that for a foreigner to have a SSN, they will need to be have been eligible to work in the US at some point of time, typically through a work visa.

If you were ever issued a U.S. Social Security Number (SSN) then it's yours for life. Some international students get SSNs (it varies). "Eligible to work" doesn't necessarily mean you worked in the U.S. And I think there might be some weird/quirky exceptions such as Singaporeans who work at the U.S. Embassy here in Singapore. They might be eligible for SSNs and TreasuryDirect accounts. But you can't get a SSN "just because." Just like Singapore's FINs and NRICs aren't handed out to random people across Planet Earth.

 

[boroangel]

The 3, 5, 7 year treasury notes are looking very attractive to me, yielding close to 5%. Doubt over the majority of next 5 to 7 years we will get close to 5%. Curious if anyone here looking to buy these longer duration notes?

 

[di_andrei]

The 3, 5, 7 year treasury notes are looking very attractive to me, yielding close to 5%. Doubt over the majority of next 5 to 7 years we will get close to 5%. Curious if anyone here looking to buy these longer duration notes?

I've been thinking along the same lines - I like the yields, I am comfortable with USD exposure and I wouldn't mind holding to maturity even if yields continue going up. (7y may be too long for me, but 2 to 5y would be ok).

 

[rubicon]

anyone bought TIPS? 2.4% real yield

 

[abkt99]

Hi, anyone applied for ITIN number before?Is it better to look for an agent to fill up the forms or can we do it ourselves instead?The agent charges $250 to do it. Is the fee charged reasonable? Are there options to choose other agents in Singapore to do so at a lesser fee? Any advise appreciated. Thank you.

 

[BBCWatcher]

Hi, anyone applied for ITIN number before?Is it better to look for an agent to fill up the forms or can we do it ourselves instead?The agent charges $250 to do it. Is the fee charged reasonable?

Not reasonable.

Are there options to choose other agents in Singapore to do so at a lesser fee? Any advise appreciated.

For what purpose(s) are you trying to obtain a U.S. Individual Taxpayer Identification Number (ITIN)? That detail could matter in terms of deciding how best to get one.

 

[abkt99]

Not reasonable.

For what purpose(s) are you trying to obtain a U.S. Individual Taxpayer Identification Number (ITIN)? That detail could matter in terms of deciding how best to get one.

HI,thanks for your reply. I need to get an ITIN number for tax refund purposes due to sale of land in the US.They have a withholding tax and i'll like to make a claim for it.

 

[jinsatkilife]

HI,thanks for your reply. I need to get an ITIN number for tax refund purposes due to sale of land in the US.They have a withholding tax and i'll like to make a claim for it.

Wah, u own and sold land in the US?
Then such fees must be peanuts

Just spend that fee to have peace of mind bah

 

[BBCWatcher]

HI,thanks for your reply. I need to get an ITIN number for tax refund purposes due to sale of land in the US.They have a withholding tax and i'll like to make a claim for it.

In that case you simply file IRS Form W-7 along with your IRS Form 1040-NR tax filing. If you're filing Form 1040-NR on your own, that's easy. If you're hiring a tax preparation firm of some kind to help you with Form 1040-NR then the ITIN (Form W-7) should just be part of the whole service.

Wah, u own and sold land in the US?
Then such fees must be peanuts
Just spend that fee to have peace of mind bah

A few points:

1. Land in the United States varies tremendously in value. For example, the average price of 1 acre (about 0.405 hectares) of farmland in the United States was US$4,080 in 2023.

2. The land may have been sold at a net loss.

3. Sometimes you get greater peace of mind knowing that someone isn't charging you an excessive sum. The party charging you an excessive sum may not have your best interests in mind. $250 solely to obtain an ITIN is an excessive sum in my view.