Short-term government debt maturing in 6 or 12 months, issued at a discount. CPF OA and SRS funds can be used to buy T-bills.
A Treasury Bill is a short-term government debt instrument issued at a discount to face value and maturing at par. The difference is your return.
Singapore T-bills have become a household-name investment since 2022, when rising rates pushed T-bill yields above 4% — far higher than savings accounts and even most fixed deposits.
Tenors: 6-month and 1-year T-bills are issued regularly.
Auctions: 6-month T-bills are auctioned every two weeks; 1-year T-bills quarterly.
Minimum: S$1,000, in multiples of S$1,000.
Discount pricing: pay S$98 today, get S$100 back in 6 months. The implied yield is annualised for comparison.
Non-competitive bid: you accept whatever the auction's cut-off yield turns out to be. Guaranteed allocation up to the auction's non-competitive limit (40% of the issue). Best for retail investors.
Competitive bid: you specify the minimum yield you'll accept. Higher risk of being unallocated if your bid is too aggressive, but lets institutions express a view.
Result: announced 1 day after auction. Funds debited (or returned for unsuccessful bids) on issue day.
Cash: via DBS, OCBC, UOB internet banking, or the MAS portal.
CPF OA: yes — and this is where T-bills shine. CPF OA earns 2.5% by default; recent T-bill yields of 3.5% – 4% mean you earn the difference.
CPF OA T-bill mechanics: there's a 1-month interest 'gap' on each side (when funds move out and back), so the effective break-even versus leaving in OA is roughly a 0.5% yield premium.
SRS: SRS funds can also buy T-bills, useful if you want a guaranteed-return parking spot inside your SRS account.
A short-term government debt instrument issued at a discount to face value. Tenures of 6 months and 1 year. The difference between purchase and maturity price is your return — annualised for comparison.
Yes. CPF OA can buy T-bills directly, capturing the yield spread above the OA's 2.5% guaranteed rate. There's a ~1-month interest gap on each side of the T-bill holding period (when funds leave and return to OA), so the effective break-even is roughly a 0.5% premium over OA.
Submit a non-competitive bid (accept whatever cut-off yield the auction produces) or a competitive bid (specify your minimum yield). Non-competitive is the retail default — guaranteed allocation up to 40% of the auction's non-competitive quota.
6-month T-bills are auctioned every two weeks (typically Thursdays). 1-year T-bills are auctioned quarterly. Application is via DBS / OCBC / UOB internet banking, the MAS portal, or CPFIA for CPF-funded bids.