The latest T-Bills yield 3.77%. While CPF-OA yields 2.5% (after the first $20,000). T-Bills are backed by the Singapore government. So I’ve been getting a ton of questions – Should one use CPF-OA funds (2.5%) to invest in T-Bills (3.77%), and earn the extra 1.27% interest, risk free? There’s a bit of nuance to this question, and it’s not as straightforward as it seems. So I wanted to share views in this article.               

Basics: What are Treasury Bills (T-Bills)?

Treasury bills (T-bills) are short-term Singapore Government Securities (SGS), of 6 or 12 month duration. There are 3 big advantages of T-Bills: Risk Free High short term interest rates Can be bought with CPF-OA, SRS and Cash

Risk Free

Backed by the Singapore government, this is as close to risk free as it gets

High short term interest rates

The latest...