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Showing posts from February, 2023

T-bills and CPF Time Deposit

I saw this in the news today -  OCBC offers new option to customers to earn higher interest from CPF funds . For the first time in history I see " CPF Time Deposit " offered by a bank. (Technically speaking, CPF is like time deposit with the government. This is like time deposit outsourced, albeit for a very short period? ) Previously those who were eyeing "higher interest" (via external returns) on their OA accounts can only invest through CPFIS into T-bills and it may be a hassle to do so, except for DBS digibank customers who can do it via online. I wonder if other banks will soon follow suit to offer "CPF Time Deposit ". (Since people may be starting to run out of liquid funds for parking.)  DBS bank has an  article  about investing in T-bills and I think it rightly pointed this out:  "It is not as straightforward as you will need to work out the “breakeven” yields of T-bills for using CPF savings to ensure that you will not be in a worse off posi...

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