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.
OMG!
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!
Reference:
CPF-OA in T-bill. DBS 3.9% p.a. 5 months FD promo code.
New YouTube video on AA REIT:
hi ak, just share that we can apply tbill using cpf online at dbs ibank portal. but the cpfis mus be with cpf.
ReplyDeleteHi Chenheyuan,
ReplyDeleteWow! 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."
Source:
www.dbs.com.sg/personal/articles/nav/investing/investing-in-t-bills
you can try logging in ibanking (desktop version) the cpf option is there :)
ReplyDeletejust realised had a typo .. e cpf investment acc must be with dbs.
ReplyDeletehttps://www.dbs.com.sg/personal/support/investment-sgs-apply.html?pid=sg-dbs-help-support-home-featured-article-cardtile
see "When and how to apply?"
Hi Chenheyuan,
ReplyDeleteI 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
Hi EX,
ReplyDeleteWe 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. :)
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?
ReplyDeleteHi Robin,
ReplyDeleteIs 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.
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
ReplyDeleteHi Siew Mun,
ReplyDeleteYou 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. :)
Hi Ak
ReplyDeleteOcbc fd for 8 mths period is 4.18% and not 4.08%. Did you get it wrong?
Hi SgFire,
ReplyDeleteI actually took a screenshot of the transaction.
Looking at it.
Indicative interest rate: 4.08%
I got short changed? (TmT)