Should you buy 6-month or 1-year Singapore T-bills as investment?

  • 📰 asiaonecom
  • ⏱ Reading Time:
  • 64 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 59%

Business News News

Business Business Latest News,Business Business Headlines

Singapore treasury bills (T-bills for short) are short-term debt securities issued by the Singapore Government. They are available in two formats: six months, or one year, and are issued in tranches several times throughout the year. The minimum investment sum is S$1,000. Due to the fact that the Government has never once defaulted, T-bills carry the highest-possible credit ratings of...

The table above displays the three main differences between six-month and one-year T-bills - tenor, yield and frequency.

However, T-bill yields are determined via auction. According to the latest yields at the time of writing, six-month T-bills have a slightly higher yield — 3.75 per cent over 3.67 per cent. Our investment timeline. If you need your money back within a few months, choosing the six-month T-bill will prove more suitable. Only choose the one-year T-bill if you can remain invested for 12 months or more.

To be sure, the differences between six-month and one-year T-bills are really quite minor — and may be negligible over time. The main consideration really is how soon you may need your money back.To start investing in T-bills, here’s what you’ll need.A Central Depository Account linked to the bank account you want to invest withA CPF Investment Account or SRS Account with DBS/POSB, UOB or OCBCOnce you have set up the appropriate account, you can start applying for the latest available T-bills.

The balance of the issue amount will be awarded to competitive bids from the lowest to highest yields.If T-bills don’t exactly suit your requirements, consider these other securities issued by the Singapore government.Singapore Government Securities bonds pay a fixed interest rate, and are available in a wide range of tenors — from two years to 50 years.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in BUSİNESS

Business Business Latest News, Business Business Headlines