How to transfer funds from CPFIS to CPF OA at T-bill maturity

What happened?

We’re seeing a lot more discussion within the Beansprout community about what needs to be done when the Singapore Treasury Bill (T-bill) matures. 

This might be because there are more investors who started investing in the 6-month T-bill from September 2022 onwards. 

For example, the 6-month T-bill BS22118H issued on 20 September 2022 will be maturing on 21 March 2023. 

Hence, we wanted to share how you can transfer your funds used in the CPF Investment Scheme (CPFIS) back to your CPF Ordinary Account (OA) after the T-bill matures.

Why you need to transfer funds used in CPFIS to your CPF OA upon T-bill maturity

It is important to note that when the T-bill matures, the money is credited to your CPF investment scheme account (CPF IA) with the bank, and not directly to your CPF OA account. 

We shared earlier that the CPF interest payment is computed based on the lowest balance for the month, rather than the average balance of the month.  

What this means is that you would not want your CPF funds to be left outside your CPF account for longer than is necessary, as you would run the risk of losing additional CPF interest. 

Step by step guide on how to transfer funds used in CPFIS to your CPF OA upon T-bill maturity

We will show how you can transfer funds used in CPFIS back to your CPF OA upon maturity of your T-bill.

The following illustrative example is shown using the DBS internet banking platform. Based on sharing by the Beansprout community, UOB internet banking also has a similar function to transfer back to your CPF OA account.

Step 1 – Log in to your internet banking platform

After logging in, click on Invest.

Within Invest, select the option to ‘Refund to CPF Board’ within the Manage Investments option.

Step 2 – Input details of refund to CPF Board

Next, you will be asked to provide details on your personal particulars.

Do also check to make sure that your account details are correct.

Next, select whether you would like to make a full or partial refund to CPF. 

Step 3: Verify details

Next, you will be asked to verify your details. 

Once again, do check that your personal particulars, account details, and refund amount are correct. Press submit. 

After submitting, your request for transfer of funds from your CPF IA to your CPF OA would be completed. 

Step 4: Check your CPF account to make sure the funds have been credited

Do remember to check your CPF account statement to make sure the funds have been credited back into your CPF OA account. 

Are there other ways to transfer funds used in CPFIS to my CPF OA?

Apart from the internet banking method shown above, you can also transfer funds from your CPFIS account back to your CPF OA using ATMs or at the branch of your agent bank

What if I want to invest my CPF funds in the next T-bill auction?

If you are looking to use the full amount of your CPF IA funds to invest in the next T-bill auction in the same month, then there may not be a need to transfer your funds back to your CPF OA account. 

The funds required for the T-bill subscription will be transferred from your CPF IA first, before any additional amount required is taken from your CPF OA. 

However, if you are looking to invest a smaller amount in the next T-bill auction, then you may prefer to refund a partial amount back to your CPF OA using the steps above. 

The good news is that for DBS account holders, you can now apply for T-bills using your CPF funds using DBS i-banking. 

What would happen if I do not transfer the funds used in CPFIS back to my CPF OA?

According to the CPF website, your agent bank will automatically transfer the cash balance to your CPF OA by month end if your CPF IA has been inactive (i.e. no investment transactions) for two consecutive months.

However, to avoid the loss of additional interest, you might prefer to provide an instruction for the CPF IA funds to be transferred using the steps above.

How long will it take to transfer funds used in CPFIS to CPF OA?

According to the DBS website, it will take 3 business days for the funds to be transferred back to your CPF OA. 

Are there any fees to transfer funds used in CPFIS to CPF OA? 

There are no service charges for the transfer of funds from your CPF IA to CPF OA.

Where can I get more of such financial tips? 

Find out why T-bills are a sound way to diversify your investment portfolio.

Discover how to apply to T-bills with your CPF funds using DBS i-banking.

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