Watch This Before Buying T-Bills

[@Sethisfy]

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[@saigo1718]

Hello Do u know if we apply for spore govt t bill from funds in OA, at which stage will the funds from OA be trsf to CPFIA? Wanted to check if unsuccessful will the money from OA be trsf back or ntg gets transfered out fm OA unless successful

[@saigo1718]

Hi Can i know if u competitive bid eg 3.5 and result (cut off) is 3.8 Will u get 3.5 or 3.8 if allocated?

[@Sethisfy]

Will get the cut-off

[@praba991ify]

Should we go for competitive bid, and bid lower? To get the full allocation

[@Sethisfy]

yes but if many people bid low the yield will be low, so you should bid a rate you would be happy to get, otherwise you risk getting a yield too low for yourself

[@treadstone6836]

Keep biding low or don't bid at all, will of course end up getting low yield. Simple demand and supply principle, yet many people don't understand. The new comers have now caused T-bills yield to be lower than fixed deposit. What's the point of biding 4% when fixed deposit rates from RHB and CIMB are already at 4.1 and 4.2 respectively. You might as well stick to fixed deposits and leave T-bills to those who want to make higher returns. Only when all of us bid higher then the yield will be high.

[@hr9168]

Can I ask do we need to pay the cpf accrued interest when we use cpf to buy T-bills? And issit the T-bill interest we get is all cash or need to put back into cpf? And also is there any other charges other than the $2.50 transaction fee?

[@Sethisfy]

No accrued interest. The interest and capital earners are placed back in CPF. You can see this for charges: www.dbs.com.sg/iwov-resources/media/pdf/invest/cpf_schedule_charges.pdf

[@trd7538]

Hi one question. Example the last month rate is at 3.75% than I feel that this month will be 3.7% but I bid like 3.5%. Than the final is at 3.65% will I get 3.65% or will I get 3.5%?

[@Sethisfy]

3.65

[@trd7538]

Understand thanks. Thought that I bid 3.5% will get what I bid 😂 .. of cos higher is better

[@Tvyoutubeacc]

Seth! Are you familiar with retail energy companies? Would love a video on that.

[@Sethisfy]

Not really unfortunately. My utility bill is not a lot so I don’t really care but will note this video idea down. Thanks!

[@treadstone6836]

Keep biding low or don't bid at all, will of course end up getting low yield. Simple demand and supply principle, yet many people don't understand. The new comers have now caused T-bills yield to be lower than fixed deposit. What's the point of biding 4% when fixed deposit rates from RHB and CIMB are already at 4.1 and 4.2 respectively. You might as well stick to fixed deposits and leave T-bills to those who want to make higher returns. Only when all of us bid higher then the yield will be high.

[@saigo1718]

Hi Hi I hear ppl say if we want 100% allocation choose non competative is better than competative? Is it true? Which got more chance to get 100% allocation?

[@Sethisfy]

Competitive bids under the cut-off will get 100% allocation. Non-competitive bids have a chance of being allocated partially if there are too many non-competitive bid. So the best way of getting 100% allocation is to submit a low competitive bid. But if everyone does that the cut-off yield will be low.

[@saigo1718]

@@Sethisfy another way to look at it is non competative usually fm retail and underscribe.

[@clarencechin7]

That's a horrible mislead. U only lose 1-2mths of interest instead of the claimed 8mth. That 6mth u still get interest from the T-bill. What nonsense is that expectation that the same dollar gets both OA and the T-bill interest. U get higher IR from T-bill then why frown over the lower OA rate...zzz..

[@Sethisfy]

That’s a horrible misinterpretation of what I said. Nobody expects to get the same dollar to get both OA and t-bill interest…zzz..

[@clarencechin7]

@@Sethisfy yup, that's why it's more precise to have a lost of 1-2 mth instead of "8mth".. losing 8mths of IR doesn't it easily sounds like the investors received nothing for 8mths?

[@Sethisfy]

Saying losing “2 months of interest” is even more horribly misleading. It sounds like you only lose 2 months of interest from CPF yet gain 6 months of interest from t-bills. I was very clear in saying that you lose “8 months of interest FROM CPF”. This is clear and factual. Why would anyone think that the t-bill suddenly gave no interest at all is beyond logic.

[@clarencechin7]

@@Sethisfy the idea of "losing from CPF" is illogical when an investor clearly knows that he's paid from the T-bill.. therefore the actual lost is just that short 1-2 mth of OA's..

[@Sethisfy]

The accurate way would be to say one loses 7/8 months of CPF interest and gains from the t-bill. Saying a loss of 1-2 month interest is not accurate, especially when t-bill and CPF have different interest rates.

[@hsmint]

nice pride flag