What Are Singapore Treasury Bills and Are They a Good Investment? - Singapore News

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Whatever the reason, if you’re hoping to reap a higher return on your excess cash, T-bills might just be your answer. In this guide, we will dive into the ins and outs of T-bills so you can decide if they’re a good addition to your portfolio.

Can be redeemed in any month, with no penalty. Investors receive the face value plus accrued interest upon redemption.Fixed Deposit Vs Singapore Savings Bonds: Which Should You Go For?You can buy the T-bills using cash, CPF Investment Scheme or Supplementary Retirement Scheme funds. Here’s how they work.To buy T-bills using cash, you will need a bank account with any one of the three local banks , as well as an individual Central Depository account.

To buy T-bills using your SRS funds, you need an SRS account with any of the three SRS operators . You can apply for T-bills through your SRS operator’s internet banking portal. You will see the transaction reflected in your CPFIS statement issued by your agent bank if it went through successfully.When you apply for new T-bills, you will come across the option of a competitive and non-competitive bid.

A non-competitive bid doesn’t require you to specify your yield. Instead, you specify the amount that you want to invest and you will be allotted the T-bills at a uniform yield. This is the better option for average Joe investors, who might not know how to put in a competitive bid.

 

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