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 will need an SRS account with any one of the three SRS operators . You can apply for T-bills through your SRS operator’s internet banking portal. A competitive bid requires you to specify your yield, i.e. the price you are willing to pay for the T-bills. A lower yield means a more competitive bid. Your funds will only be invested if the cut-off yield goes above your specified yield. This type of bid is typically for institutional investors or savvier investors.

 

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