Ultimate Guide On How To Invest CPF In T Bills

[@KelvinLearnsInvesting]

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[@kokxiansoo3969]

the additional 1% of OA only applies for the first 20k, which is also the minimum amount left in OA, which you can't use for T-bill

[@linuxnewbie74]

That's what I understood also, the first 20k in OA will be 'locked', anything beyond then can invest

[@MrCrazykill2]

That's what I'm figuring out too. So technically above 20k of OA it's still earning 2.5% right?

[@devilfishsir]

For all 3 banks, they charge a quarterly platform fee. These would become a fixed cost for the 6 or 12 month t-bill

[@singho1267]

hey Kelvin, thanks for your effort making that excel and the explanation is quick & detailed!

[@Cinimod105]

For the calculator, may I suggest you include the fees and service charges before calculating the minimum cut off yield? This way the bottom half of the spreadsheet won't be needed and can be simplfied.

[@leonishappysashimi9450]

Thanks Kelvin, very helpful. have just applied for the account, now will wait 10 days for the approval.

[@hellomoto888]

Thanks for computing & sharing the excel sheets! Given that the 3.5% interest rate (2.5% standard + 1% extra) is capped at 20k of the OA, it means that it would make sense to invest the amounts beyond 20k into T-bills (provided interest rate is more than 2.5%) right?

[@YR-up8vk]

Second this. I would like to know too

[@juznikon]

How does it affect the compound interest that I will earn by keeping my money in OA vs investing in T-Bill?

[@lishr4536]

if I already open with DBS can I change to UOB?

[@andrew-l9j]

Yes, but tedious. Maybe Kelvin can come up with a guide on how to switch from DBS/OCBC to UOB.

[@chongchai2515]

Need to transfer amount from CPF into bank CPFIA

[@64ytb]

Thank you. You mentioned that CPF gives an addition of 1% for the first 60K in OA. Meaning to say, if I have 70k in my OA, my first 60k will have 3.5% interest. Is that right? So I can use the last 10K to buy t-bill for higher interest, is that correct?

[@riginetay5017]

Hi @kelvin I appreciate your sharing For the number of interest days earning, why is there a minus 5 days in your formula? Isnt it just maturity date minus funds deduction date?

[@darylsoh]

Hi Kelvin, can I know for the upcoming 1 year Tbill BY24100T 1-Year T-bill, would we lose 2 months of CPF interest or more? Because based on the spreadsheet, funds deducted would be 26 Jan 2024, maturity is 28 Jan 2025 and funds return is 4 Feb 2025. Jan 2024 to Jan 2025 is 13 months and if funds returns is Feb 2025. CPF calculate interests monthly based on the least balance of the month. Hence effectively losing more than 2 months of interests? Correct me if I'm wrong.

[@PassiveLearner]

Thank you Kelvin! Always wondering how to do that

[@meesanunab4811]

Uob also got gold in which u can invest. Othr banks dont have

[@riginetay5017]

@Kelvin My question : for CASH investment into T-Bill, is the funds deducted taken as 1 day after auction date?

[@edwardlumsianming3430]

With the removal of SA 4% from 2025. How is it going to impact these who are committed to the HDB loan of 2.6% interest. Is it not OA interest becomes minus 0.1% 😢😢😢😢😢😢😢😢

[@blau98798]

hello! just to confirm, if i enter a competitive bid of $10k at 3% and the cut off yield is 3.5%, my entire $10k will earn 3.5%? (the cut off yield which is also wad the non competitive bids will get)

[@chongchai2515]

Do u need to transfer from cot account the into your bank cpfia to make sure there is money poses advise

[@KelvinLearnsInvesting]

No need, they will auto deduct money from cpf

[@chongchai2515]

Thanks

[@danieltan2270]

Hi Kelvin, how do i get an excel version of your T bill calculator? I tried the link but it only provided a non editable pdf version. I cant input new values.

[@chinchowpowpook]

Even is 10%,,can see cannot touch.. cannot use it for enjoyment now,,can only it when old and use it all in medical..sad

[@Farmersyoungseniors]

Consult you please? If I buy t bills on 15 Sept using OA, do I lose 7 or 8 months of CPF interests?

[@anthonyfong7714]

You are the BEST Kelvin

[@doraemxn1037]

this t bill calculate include the quarterly CPF investment deduction?

[@anguslou5640]

Technically, should we use CPF0A 2 .5% to calculate?

[@edgan1]

how come there is no option to specify cpf-oa or cpf-sa?

[@user-lm1rf8mn9o]

How is the T bill yield determine?

[@zo9fg]

each time u bid, do u get hit with fees (transaction cost)? even if u fail

[@yenjinso2775]

I'm sorry. Can you check the T-bills Months and the CPF missed months cells? When I tried to key in a number, the prompt says the formula has an ERROR. Thank you and thanks for a wonderful gift. Appreciate it.

[@KelvinLearnsInvesting]

You don't have to key in anything for these 2 cells. Just fill in the white cells and it'll auto calculate itself

[@yenjinso2775]

@@KelvinLearnsInvesting But I want to calculate it based on 12 months. The default number in the cell is 6

[@KelvinLearnsInvesting]

@@yenjinso2775 Ah, in that case you can change the auction date and maturity date

[@edwardlumsianming3430]

Please comment on the CHANGES TO CPF 2024

[@KelvinLearnsInvesting]

Soon soon

[@cuteandfunny5275]

Hi Kelvin , in webull , for newbie to get start from small , which one is better choice

[@KelvinLearnsInvesting]

Can go with snp500 index, spy

[@csy897]

Nice calculator!

[@chrleliu]

During application, how to know if you are investing your OA or SA?

[@meesanunab4811]

Is always OA for us.

[@redsfc]

Does the competitive bid behave like an auction? If that's the case, bidding at under 3% is like 'low-balling' isn't it? If everyone uses this minimum cut-off yield and bid competitively, the result is eventually the minimum cut-off yield, and nothing more... Maybe the minimum cut-off yield of just under 3% in this high interest rate environment is too conservative? As such, wouldn't bidding non-competitively maximise one's interest yield from the t-bill since we leave the financial institutes to do the competitive bidding, and they won't low-ball too much since they have a targetted yield to manage the expectations of investors in their managed funds... Maybe can factor in the housing loan offered from banks that one is servicing with CPF OA for calculating the minimum cut-off yield. Just a thought.

[@sydralz]

IMHO, all low ballers added together won't fulfill the total amount offered. Ultimately, the cutoff will still be decided by the big institutions.

[@redsfc]

Yup, hence there isn’t a point to put in a competitive bid and just choose the non-competitive bid, as long as one is certain that the interest rate will be above 3%.

[@sydralz]

​@@redsfc No one can ever be certain what the cutoff will be. I would still use competitive for CPF application, because opportunity cost. Even if today's rate is at 3%, tmr can be a different story. Shit can happen. For cash, I use non-competitive. Cheers. 😅

[@MrCrazykill2]

Can anyone explain why the minimum cut off yield needs to be higher than the CPF rates?

[@MrCrazykill2]

Why can't it be just 2.6%

[@Mew77778]

@@MrCrazykill2 because got fee. if 0.1% extra in the worst case scenario then it's not worth. Take his example. 80 dollars-ish for 1% extra interest. if yours is 0.1%, it's like 8 bucks. then minus the fee you will be left with nothing

[@jimmylim8010]

Good job!

[@PuvanLifts]

solid kelvin!

[@angdawn8662]

How to invest from cpfsa ? In the apps, only cpf oa account can be selected ?

[@KelvinLearnsInvesting]

See the bottom. the steps are different for each bank www.cpf.gov.sg/member/faq/growing-your-savings/cpf-investment-schemes/how-do-i-use-my-cpf-to-apply-for-singapore-government-bonds-and

[@ngym20s]

Why can't i download cpf tbill calculator?

[@KelvinLearnsInvesting]

Go to file -> make a copy

[@ngym20s]

@@KelvinLearnsInvesting cannot find the file option ?

[@koruspring1519]

3.7% is like UOB account ..

[@jalbertsum2990]

Once T-bill matures, need to send the funds back to CPF OA before being able to re-invest into the next issue? Or can just straightaway reinvest (i.e. deduct directly from the bank's Investment Account)?

[@FT-od4xv]

Directly trf from bank to new Tbill

[@PostPunjAhlong]

Will the amount be automatically be transferred back to OA after the T-Bills mature?

[@whyh]

For UOB, NO. You'll have to negotiate your way in UOB personal banking website to apply to transfer amount back to your CPF account. That itself takes at least a few days for UOB to process. This process can only be done in online banking. Not possible with app. If you don't do, UOB keeps your money with them at 0% interest rate happily.

[@xclusified]

@@whyh I just applied for CPFIA with them. May I know how you would go about requesting the transfer back to your CPF account? I also assume that it would have been automatic.

[@father88888]

dont say free when its NOT free T-bill calculator

[@James-ie3sz]

Risky just say accept tnc without reading