Okay my apologies. I’ve been getting a flood of questions on whether it’s better to buy the 12 month or 6 month T-Bills using CPF-OA. I was quite tied up and only got around to crunching the numbers this week. The result though, surprised me greatly. Because it turns out the 12 month T-Bills may not be better than the 6 month T-Bills for CPF-OA. In fact – there are quite a few situations where the 6 month T-Bills outperforms the 12 month T-Bills for CPF-OA. Quite a lot to cover, so lets go. Why 12 month T-Bills may not be better than 6 months T-Bills for CPF-OA? 2 big reasons:

1. You will lose 14 months of CPF-OA interest
2. Yield on the 12 month T-Bills may not be good

You will lose 14 months of CPF-OA interest The main problem here, is because of the maturity date of the 12 month T-Bills. 30 January 2024, which is incredibly close to the end of the month:...