SSB 3.21% / T-Bill 4.19%

This month I got $10.5k of SSB and a smaller amount of T-Bills. 

This months' SSB and T-Bill application dates coincided. One would have expected demand to for SSB to be less as some of the money would have been diverted to T-Bill applications, but SSB demand remains high and the SSB allocation for this month was $10,500. The SSB 3.21% average rate is very attractive.

In contrast, the interest rate for the preceding month was 2.75% and the allocation was $42,000.

As for T-Bills, the interest rate /cut-off yield hit a record 4.19% which is very nice indeed. It makes me seriously consider using my CPF to bid for T-Bills despite the hassle of needing to join the bank queue as CPF applications for T-Bills must be done 'manually'.

The internet has calculated that in order for T-bills to be more attractive than CPF 2.5%, the yield must be more than 2.96% (to compensate for the loss of CPF interest in the month pay for T-Bills and the month the T-Bill is refunded to your account). Of course, if you roll-over the T-Bill by buying a fresh T-Bill in the same month, this reduces the lost interest.