In my final weblog put up, I made a passing point out a couple of 6 month T-bill which I purchased utilizing cash in my CPF-OA maturing in the identical week.
I made a request to switch the cash again to my CPF-OA after I noticed the funds sitting in my CPF-IA a day later.
It was all fairly simple with DBS on-line banking.
I merely logged in and went to the “Make investments” tab and chosen “Extra funding companies.”
Then, I selected “Refund to CPF Board.”
Clicked on “Refund Full Quantity”, and it was mainly achieved after clicking “Subsequent” and “Submit.”
Right this moment, I checked my CPF account and located that the funds are again in my CPF-OA.
Now, I’m questioning whether or not I should purchase one other 6 months T-bill with the cash.
To be fairly sincere, I’m not as enthusiastic as earlier than as a result of the cut-off yield has decreased a lot for the reason that begin of the 12 months for six months T-bills.
In January, it was as excessive as 4.2% p.a.
The T-bill that matured final week had a cut-off yield of three.93% p.a.
I’m hazarding a guess that the cut-off yield for this week’s public sale might be going to be round 3.7% p.a. or just like what we received within the final public sale.
For a sum of $50,000, we’re taking a look at an extra curiosity earnings of lower than $200 in comparison with what the CPF-OA would pay for a 7 months interval.
Nothing to put in writing dwelling about.
Anyway, with CPF-OA cash, I can’t go the trail of non-competitive bids simply in case the unthinkable occurs.
I’ll put in a aggressive bid of three.5% p.a. as a result of I do not suppose I’m all for something decrease than that.
If the cut-off yield ought to are available at 3.5% p.a., the distinction in curiosity earnings goes to be lower than $120.
The cut-off yields for six months T-bills are declining however the CPF-OA nonetheless pays 2.5% p.a.
So, the distinction is shrinking and it’s actually not a giant deal.
There may be fairly a little bit of discuss in social media that we must always all use our CPF-OA cash to purchase T-bills.
To be sincere, except the sum of cash is comparatively giant, it is not something to fret about.
If we shouldn’t have a big amount of cash sitting in our CPF-OA, we actually should not lacking out on any significant passive earnings.
I believe some individuals would say do not sweat the small stuff.
After all, I’m simply speaking to myself.
If AK can discuss to himself, so are you able to!
