We all know by now that it’s not the best idea to leave our excess cash in a bank savings account. After all, with some savings accounts giving as low as 0.05% per annum interest, the meagre returns are insufficient in helping us beat inflation in the long run.such as multiplier accounts with higher interest rates may make you jump through more hoops to unlock higher interest rates.
T-bills are issued by the government primarily to develop the local debt markets. The issuance of these bonds serves three main reasons. T-bills have an AAA credit rating with the backing of the Singapore Government, as well as short maturity periods of six months to one year. You can invest with cash, CPF or SRS funds without an overall limit, and — unlike with SGS bonds, which pay investors in coupons — receive the full value upon maturity.
On top of that, since the interest rates are determined based on a uniform-price auction, the interest rate that you will receive is not certain. Selling your T-bills before they mature may also result in losses as bond prices may fluctuate based on the market interest rate.