3.32% per annum interest rate – Singapore Government Treasury Bills

The latest October Treasury Bills (T-Bills) has a yield of 3.32% per annum for its 6-month T-Bill (BS22119T).

Investor pays $98.345 upfront and gets back $100.00 on maturity (6 months later). This works out to interest earns at 3.32% per annum on the 6-month T-Bill.

Treasury bills have AAA credit rating. Investment can be made by Cash, SRS funds or CPFIS funds, Auction/Application of 6-month T-Bills happens twice a month usually. Watch out for window period of application from MAS website.

As for Cash or SRS payment method, one can apply (bid) at internet banking of DBS/POSB, OCBC, UOB. It can also be applied through ATMs of these 3 local banks. (You must have a CDP Account to transact.)

See MAS website for more information and also for CPFIS method of application.

Minimum amount for investment is S$1,000. One can choose Competitive bid option or Non-Competitive bid option of application. For non-competitive bid option, investors accept the yield % resulting from the auction. (Warning: this option may result in negative yield % especially during period of declining interest rates environment.)

In current rising interest rates environment, potential for higher positive interest yield % is higher.

If one has no need to use cash for 6 months, one may consider parking money with Singapore Treasury Bills (T-Bills). Selling back T-Bills before 6 months is up may result in losses in cash.

Note: Some T-Bills offered may be for a maturity period of 1 year instead of 6 months. See the T-Bills issuance schedule for a particular month. The upcoming 1-year T-Bills start application from 6 October 2022. 6 pm.

Further update dated 11 November 2022:

In the latest T-Bill auction, NOT all non-competitive bids will get their full allotment this time round.

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The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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