Apply for T-bills using CPF OA via DBS i-banking: A step-by-step guide

There has been significant demand for Singapore Treasury Bills (T-bills) with the high interest rates in recent auctions. For example, you can potentially earn up to $530 more by investing S$100,000 of your CPF Ordinary Account (OA) funds in the 6-month T-bill based on the latest yield of 4.0% p.a. 

However, for many of us in Singapore who wish to apply for T-bills using CPF OA, it has always been a big hassle to queue at the bank branch.

Here’s the good news! DBS now allows you to apply for the T-bills using CPF OA via DBS internet banking (i-banking). This means that you can now apply for the T-bills in the comfort of your home, rather than having to wait for a few hours at the bank. 

Let’s go through the steps that you can apply for T-bills using CPF OA via DBS i-banking. 

Read on to find out about:

• How to apply for T-bills using CPF OA through DBS i-banking: A step-by-step guide
• When is the deadline for T-bill applications using CPF OA through DBS i-banking?
• What are the charges for T-bill applications using CPF OA via DBS i-banking?
• Will funds be deducted from my CPF OA account at the time of application?
• Is it worthwhile to apply for T-bills using CPF-OA via DBS i-banking?
• What do I need to apply for T-bill using CPF OA via DBS i-banking?
• Where can I find out more about applying for T-bills using CPF OA?

How to apply for T-bills using CPF OA through DBS i-banking: A step-by-step guide

Step 1: Select Invest in Singapore Government Securities (SGS) from the Top Menu

First, log in to your DBS i-banking account. Note that you can only apply for T-bills using CPF OA via the website and not the mobile banking app. 

Select ‘Invest’ from the top menu, where you will see a list of drop-down options.

Select ‘Singapore Government Securities (SGS)’ to apply for T-bills using your CPF OA account. 

Step 2: Select Apply for T-bill

You will be presented with a list of Singapore Government Securities (SGS) to choose from, including Singapore Savings Bonds, T-Bill and Bond. 

Select ‘T-bill’ to apply for T-bills using your CPF OA account. 

Step 3: Select the specific T-bill issuance to apply for 

Next, select the specific T-bill issuance you’d like to apply for using your CPF OA account. 

The T-bill issuance will be identified based on its securities name (eg BS231102H), which you can cross check against the MAS website to make sure you are applying to the correct issuance. 

Step 4: Input subscription details

Once you have selected the T-bill issuance that you would like to apply for, you will be asked to put in your application details.

This would include your nationality (Singapore Citizen/Singapore Permanent Resident/Non Permanent Resident).

Also, you would need to select your payment model (Cash/SRS/CPF-OA).

Select CPF-OA to apply for T-bills using your CPF OA account. 

Put in your application details, including whether you would like to make a competitive or non-competitive bid. For competitive bids, you will also be asked to put in your bid yield. 

If you wish to invest in the bond only if it yields above a certain level, submit a competitive bid. You can specify the yield you are willing to accept in percentage terms, up to 2 decimal places. Note that you may not get the full amount that you applied for, depending on how your bid compares to the cut-off yield.

In a non-competitive bid, you only specify the amount you want to invest, not the yield. Choose this if you wish to invest in the bond regardless of the return or are unsure of what yield to bid. You will get the bond at the cut-off yield, which is the highest accepted yield of successful competitive bids.

Next, enter the amount of T-bills that you’d like to apply for using your CPF-OA. The minimum application amount of the T-bills is S$1,000, and you would need to put in application amounts in multiples of S$1,000. This means that you will not be able to put in application amounts of say $500 or $1,600. 

Step 5: Confirm subscription details

Lastly, confirm that you’ve entered the correct details for your T-bill application using CPF-OA. 

Get your family member next to you to check that you have put in the correct number of zeroes in the application amount!

Step 6: Receive confirmation

Upon submission of the T-bill application using your CPF-OA, you will receive a confirmation of your application. 

Do note that this is just a confirmation of your application, and not a confirmation of the issuance of the T-bill to you.

You will only find out whether you have been allotted the T-bill after the auction is completed. 

When is the deadline for T-bill applications using CPF OA through DBS i-banking?

The deadline for T-bill applications using CPF OA through DBS i-banking is 2 business days before the auction date at 12pm (noon). 

This means that if the T-bill auction is on 2 February 2023 (Thursday), online applications using CPF-OA will end at noon on 31 January 2023 (Tuesday).

The application end date is earlier than cash applications, which will close 1 business day before the auction date at 9pm. 

What are the charges for T-bill applications using CPF OA via DBS i-banking?

For T-bill applications using CPF-OA via DBS i-banking, there will be a fee of S$2.50 + GST for each transaction. This will work out to S$2.70 per transaction.

Do make sure that you are aware of this fee for CPF OA applications for T-bill, especially if you are used to not having any charges incurred for your cash applications.  

Will funds be deducted from my CPF OA account at the time of application?

Another commonly asked question is whether there will be funds deducted from your CPF-OA account at the point of application of the T-bill. 

According to the DBS website, no funds will be debited or earmarked at the point of application for T-bill applications using CPF-OA.

This means that you will not lose out on your CPF OA interest, if your application for the T-bill is not successful. 

Once again, this is different from cash applications, where funds will be debited from your bank account at the point of application. 

Is it worthwhile to apply for T-bills using CPF-OA via DBS i-banking?

Earlier, we shared our thoughts on whether it is worthwhile to apply for the T-bills using CPF OA.

You will lose an additional one or two months of CPF interest payment when you use your CPF to invest in the T-bill. 

As such, it is generally more worthwhile to use your CPF OA to invest in the T-bill when the bond has a longer maturity or when interest rates are higher. 

There are also risks relating to investing in the T-bill, and the price of the T-bill could fall if interest rates go up. There is also no certainty on the interest rate of the T-bill at the point of application. 

What do I need to apply for T-bill using CPF OA via DBS i-banking?

You will need to have a CPFIS account, and link your CPFIS account to DBS. 

To open a CPFIS account, certain requirements must be met, including being at least 18 years old, not being an undischarged bankrupt, and completing the CPFIS Self-Awareness Questionnaire (SAQ). After finishing the SAQ, you can submit an application to link your CPFIS account to DBS. 

Thereafter, you will need to wait for 3-5 working days before you can apply for T-bills online using CPF-OA.

To transfer your CPF Investment Account to DBS from another bank, you will need to visit a bank branch to fill up the CPFIS-Inter-Bank Transfer Form. Due to high volume, the time frame to complete the inter-bank transfer process can take up to 2 weeks.

Where can I find out more about applying for T-bills using CPF OA?

You can learn more about T-bills here.

Join our Telegram group to ask us any other question you have about applying for T-bills using CPF OA.