Thursday, 13 April 2023

First online application for 3.75% T-Bills using CPF

 

With OCBC rolling out online applications for T-Bills using CPF funds last month, I made my first application. There is unfortunately the inevitable CPF service charge but at least I can apply and make a few dollars more than the 2.5% CPF interest. The fine print says that you can only apply if your CPFIS account is with OCBC.

Applied for $100k at 3.69% and was fully allocated at 3.75%. The T-bill matures on 17 Oct 2023 whereupon I will use the funds to apply for the 26 Oct 23 6m T-Bill. CPF only pays interest on the lowest balance of each month so its good to roll over the T-Bill funds as much as possible.

Next up will be the 1 year T-Bill later this month. My concern is that the cut off yield will be much lower, because of its attractiveness to CPF investors. On MM/SSI, CPF investors are willing to bid as low as 3.3% for it.

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