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No T-bills next month. New AA REIT video.

Friday, January 27, 2023

I shared in my last blog that my plan was to keep buying 6 months T-bills every month with cash on hand till April this year.

Why April?

That's when the T-bills I bought in October last year mature.

Then, I would just recycle money from each maturing T-bill into new ones.

Another perpetual passive income generator for me or so I thought?

Well, there is a change of plan.

Yes, it seems like the plan to buy T-bills in February has been sunk.

How come like that?

To put it simply, I have run out of money.

Yes, doesn't sound too auspicious to say something like this during Chinese New Year but it is the truth.

In my most recent blog, I shared the promotion code for DBS 5 months 3.9% p.a. fixed deposit.

Minimum $20K deposit.

The promotion code just popped when I logged into the DBS phone app.

As an earlier promotion expired very quickly before, I was very fast to share the latest promotion code.

I hope it works for everyone.

I took advantage of the promotion too, of course.

That promotion got me curious and I decided to check UOB and OCBC for fixed deposit promotions too.


OCBC is offering 4.08% p.a. for an 8 months fixed deposit!

Minimum $20K deposit.

This is only for OCBC 360 account holders.

What to do?

I couldn't resist it.

With this latest fixed deposit placement, I don't have much cash on hand left.

So, no T-bills next month in February for me.

This is probably not a bad thing as the yield for T-bills has been on the decline.

To be fair, 3.87% p.a. for a one year T-bill isn't terrible if we are using CPF-OA money.

However, if we are using cash, fixed deposits with higher interest rates are better options.

I said in my last blog that I was aware that CIMB offers 4% p.a. for a 6 months fixed deposit.

However, I only consider DBS, OCBC and UOB to be as relatively risk free as T-bills.

Having said this, I do have many fixed deposits with CIMB but I am not too comfortable with placing many more.

Just talking to myself, as usual, of course.

Remember, AK is mental.

Huat ah!

CPF-OA in T-bill. DBS 3.9% p.a. 5 months FD promo code.
New YouTube video on AA REIT:


Chenheyuan87 said...

hi ak, just share that we can apply tbill using cpf online at dbs ibank portal. but the cpfis mus be with cpf.

AK71 said...

Hi Chenheyuan,

Wow! When did this happen?

I know the 3 local lenders said they would work on allowing application for T-bills with CPF money using their online portals and app.

However, there is no news on progress made, if any.

When I checked DBS website, it still says this:

"To apply for T-bills using your CPF funds with DBS – You may visit any DBS branch to submit your applications. DBS branch applications close 2 business days before the Auction Date at 10am."

Chenheyuan87 said...

you can try logging in ibanking (desktop version) the cpf option is there :)

Chenheyuan87 said...

just realised had a typo .. e cpf investment acc must be with dbs.

see "When and how to apply?"

AK71 said...

Hi Chenheyuan,

I used up more than 90% of my CPF-OA money for this month's 1 year T-bill already.

The lazy AK didn't want to have to do it again.

The stingy AK didn't want to have to pay $2.50 again.

Thanks to you, now, I know can apply online with CPF money.

Will take note. :D

AK71 said...

Hi EX,

We are only human. ;p

Well, it is highly probable that the 6 months T-bill auctions in February might see yields lower than 3.9% p.a.

I hypnotize myself. LOL.

3.9% p.a. for a 5 months tenor from DBS is really not bad. :)

Robin said...

Hi AK, I have also used my CPF OA to invest in the recent 1-year T-bills. I am also using DBS bank. However, based on my calculation from the OA deduction, it seems that the interest rate is 3.858% instead of 3.87%. Not sure if you know why there is a small discrepancy?

AK71 said...

Hi Robin,

Is it because they deducted the money a few days before the commencement of the T-bill which is on 31 Jan?

I am just taking a pot shot here as I did not look at the numbers closely.

Or is it the $2.50 application fee?

A small sum but it could matter percentage wise if the amount of OA money used is relatively small.

Again, just taking a pot shot since I don't know how much OA money you used.

Siew Mun said...

Right at the bottom is AA Reit YouTube created by you. I sold off my SSB last and pivot to AA at $1.20 between Sep - Nov last year

AK71 said...

Hi Siew Mun,

You made a good move switching out your SSBs for more AA REIT at $1.20 a unit.

Gong xi, gong xi! :D

If AA REIT was a smaller position in my portfolio, I might have bought more too. :)

SgFire said...

Hi Ak

Ocbc fd for 8 mths period is 4.18% and not 4.08%. Did you get it wrong?

AK71 said...

Hi SgFire,

I actually took a screenshot of the transaction.

Looking at it.

Indicative interest rate: 4.08%

I got short changed? (TmT)

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