I obtained an SMS from CPF that went:
“You could have a CPFIS funding deduction out of your Bizarre Account.”
I suppose because of this my aggressive bid (utilizing CPF-OA cash) for the final 6 months T-bill public sale that occurred on 14 September was profitable.
A fast test revealed that the cut-off yield was 3.73% p.a. and that is nonetheless comparatively enticing.
That is comparatively enticing when our native banks are providing a lot decrease rates of interest for six months mounted deposits.
Positively, it’s extra enticing than the two.5% p.a. supplied by CPF-OA even when accounting for a lack of 7 months price of curiosity earnings which might have been paid by CPF.
Why 7 months?
This is because of how CPF calculates and pays curiosity on our CPF financial savings, taking solely the month-end stability into consideration.
So, all three of my purposes utilizing money available, SRS and CPF-OA cash have been profitable.
I discover it unusual that there appears to be much less curiosity in 6 months T-bill now.
It appears to be weaker in comparison with a 12 months in the past, for instance.
I bear in mind non-competitive bids being so plentiful that my provide to purchase was solely partially stuffed at instances.
May it’s that extra individuals are shopping for the frequent shares of DBS, OCBC and UOB as a substitute, given the upper degree of public consciousness of how enticing their dividends are?
In any case, a 6% dividend yield beats 3.73% p.a. return palms down.
May AK be doing one thing flawed?
OMG!
I can really feel an anxiousness assault coming.
Time to go sink some enemy warships to calm myself down.
Associated publish:
Should purchase T-bill?
(Easy methods to switch from CPF-IA to CPF-OA?)
