By MoneyBees
Compare what your money market fund would earn with the latest MAS T-bill cut-off yield over the same months, after fees, with the break-even fund yield, liquidity and SDIC cover side by side.
They carry different risks. A T-bill is issued by the Singapore Government and pays its face value at maturity. A money market fund is an investment product: MAS rules limit it to high quality, short-dated debt and deposits, but its return is not guaranteed.
No. SDIC insures deposits up to S$100,000 per depositor per bank and states that investment products such as unit trusts, shares and other securities are not covered. T-bills are not SDIC deposits either.
Funds usually let you sell on any business day. MAS's Code on Collective Investment Schemes requires a fund to pay out redemptions within 7 business days.
Yes, at the main branches of DBS, OCBC and UOB, at the market price, which may be lower than what you paid. Otherwise you hold it to maturity and get the face value.
The calculator shows it: the T-bill's return on the cash you pay, plus any yearly fee your fund or platform charges on top of its quoted yield.
MAS issues 6-month T-bills every two weeks and 1-year T-bills quarterly. Auctions are announced 5 business days ahead.
T-bills can be bought with cash, SRS or CPFIS funds. Whether a money market fund takes SRS money depends on the fund.
The cut-off yield is set at each auction, and the next one may be higher or lower. The page reads the most recent MAS result and credits it, so check the next auction before you apply.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).