I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Friday, 10 February 2023

T-bills and CPF Time Deposit

 Read? T-bills and CPF Time Deposit

Win-win for CPF members, CPF and MAS/OCBC?


  1. The 2.5% interest offered by the OA makes it hard for people to move their funds. 2.5% is neither high nor low.

    If the funds were cash sitting in some bank deposit accounts, it would be a no brainer to put the cash into a 4% T-bill or a 3.88% FD.

    For me, it is still ok to put my OA funds into a 4% T-bill since I am not using the funds and its just sitting doing nothing. And I have actually done it, moving about $1.2M of my OA funds into T-bills for yields of 4% to 4.4%.

    Looking to do the same for my wife's OA. Now that we can apply for the T-bills online using OA funds makes it very easy.

  2. CW,

    I like your example of using $500K ;)

    Imagine using $50K to jump through hoops...

    OK, $300 is still money...

    Big daddy must be smiling.

    With banks' fixed deposits and T-bills acting as "escape pressure valves", there's less urgency and pressure to adjust CPF rates upwards.



    1. I remember the CPF has a formula to tie the interests to the deposit rates offered by the three local banks.

      And so far the deposit rates have not reached the trigger points to alter the CPF interest rates. Then there is possible political ramification if the CPF raises the interest rate. Many HDB owners with HDB loans could be adversely affected by an increase in OA interest rate as HDB loans are pegged at 0.1% above OA rates.

    2. mysecretinvestment,

      CPF OA is based on the 3 months average of major local banks' interest rates.

      The trouble is that our local banks are using the same trick as how we shepherds give a "low" basic pay to rank-and-file workers, but add a lot of extras like shift allowance, meal allowance, punctuality bonus, transport allowance; etc.

      This way, when it comes to calculating overtime, pay increments, and giving annual bonus, we are using the lower basic salary only ;)

      That's how CPF no need to raise OA 2.5% interest rate despite our major local banks having "savings accounts" that give interests north of 4% to 7%!?

      Yes, even higher than fixed deposit accounts!!! T-bills and Singapore Savings Bonds too!!!


      What to do?

      Unless bei kambings move from negotiating monthly salary to annual compensation packages, how would they ever see all the jumping through hoops are not 'free"?

      It's just SPEND more to earn/save more (???) sleight-of-hand trickery ;)

      Then again, marketing is fun if you're the pipe-piper!


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