{"id":1372,"date":"2023-06-01T01:07:40","date_gmt":"2023-05-31T17:07:40","guid":{"rendered":"https:\/\/www.wealthfor.us\/article\/?page_id=1372"},"modified":"2024-01-11T23:23:42","modified_gmt":"2024-01-11T15:23:42","slug":"how-to-buy-t-bills-singapore","status":"publish","type":"page","link":"https:\/\/www.wealthfor.us\/article\/how-to-buy-t-bills-singapore\/","title":{"rendered":"How to Buy T-bills Singapore: The Step-by-Step Guide"},"content":{"rendered":"

\"How<\/p>\n

Treasury Bills (T-bills) is a short-term <\/span>Singapore government bonds<\/span><\/a> with 6-month or 1-year maturity. T-bills have been one of Singapore’s most popular investment choices due to their short-term duration and relatively high-interest rates. So, how to buy T-bills Singapore?<\/span><\/p>\n\n

How Does It Work?<\/span><\/h2>\n\n\n\n\n\n\n\n\n
Issuance Frequency<\/span><\/i><\/td>\nEvery two weeks. See the <\/span>issuance calendar<\/span><\/a>.<\/span><\/td>\n<\/tr>\n
Bid Format<\/span><\/i><\/td>\nCompetitive or non-competitive bids (see below).<\/span><\/td>\n<\/tr>\n
Investment Amount<\/span><\/i><\/td>\nMinimum $1,000, and in multiple of $1,000<\/span><\/p>\n

No maximum, limited to the amount offered for each issuance.<\/span><\/td>\n<\/tr>\n

Interest Payout<\/span><\/i><\/td>\nPaid upfront.<\/span><\/p>\n

You pay the bills at a discount and receive the full face value at maturity.<\/span><\/td>\n<\/tr>\n

Buy with<\/span><\/i><\/td>\nCash, SRS, CPF<\/span><\/td>\n<\/tr>\n
Secondary Market Trading<\/span><\/i><\/td>\nYes. You can buy\/sell in the secondary market at your local bank branches. The principal is not guaranteed as it is subject to the prevailing market price.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Competitive vs. Non-competitive Bids<\/span><\/h3>\n

In <\/span>non-competitive bids<\/i><\/b>, you only specify the amount you want to invest, but not the minimum yield you will accept. You will receive whatever the resulting yield from the auction. 40% of the total allocation will be allocated to the non-competitive bids. If the total amount of non-competitive bids is less than that 40%, you will get the full amount you applied for. You will be allocated pro-rated if the total is more than 40%. Your yield will be the cut-off yield, the highest accepted yield of successful competitive bids.<\/span><\/p>\n

In <\/span>competitive bids<\/i><\/b>, you specify the minimum yield that you will accept. Depending on how your bid compares to the other competitive bids, you may not get the amount you applied for if the cut-off yield is lower than yours. For those using CPF, a competitive bid is recommended because you want to ensure getting a higher yield than the prevailing CPF rates.<\/span><\/p>\n

 <\/p>\n

How to Buy T-bills Singapore<\/span><\/h2>\n

What you need<\/span><\/h3>\n

For cash application<\/b>, you must have a local Singapore bank account from DBS\/POSB, OCBC, UOB, and a CDP account with the direct crediting service (DCS) enabled. This DCS allows interest payout and your principal balance to be paid directly to your bank account. If you don\u2019t have a CDP account yet, you can follow our step-by-step guide on <\/span>how to open CDP account<\/span><\/a>.<\/span><\/p>\n

For SRS application<\/b>, you need your SRS account with one of the operators (DBS\/POSB, OCBC, UOB).<\/span><\/p>\n

For CPF application<\/b>, you need a CPF Investment Account with one of the three CPFIS agent banks (DBS\/POSB, OCBC, UOB).<\/span><\/p>\n

 <\/p>\n

How to apply<\/span><\/h3>\n

If you are ready to buy T-bills, in summary, the steps are as follows:<\/span><\/p>\n