Apply for T-bills online using CPF OA via UOB: A step-by-step guide

What happened?

UOB has started allowing customers to apply for T-bills online using CPF OA funds via UOB personal internet banking (i-banking).

This follows a rollout of the function by DBS in January this year, and by OCBC in April this year. 

Over this period, we have seen that the demand for T-bills remains healthy with the cut-off yield for the 6-month T-bill reaching 3.83% p.a. at the auction on 26 April 2023.

Let’s go through the steps to apply for T-bills online using CPF OA via UOB.

How to apply for T-bills online using CPF OA through UOB: A step-by-step guide

Step 1 – Select Investments and IPO/Bonds/Tbills from the side menu

First, log in to your UOB i-banking account.

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

Select ‘IPO/Bonds/Tbills’ to apply for T-bills using your CPF OA account.

There will be a pop-up with key points you should take note of before you apply for the T-bill. 

Read the notification and click on the ‘Proceed’ button after you have understood these key points you need to know about investing in T-bills. 

Step 2: Select ‘SGS Treasury Bill’ from the top menu

You will be presented with a list of investment options to choose from, including Initial Public Offering, Singapore Savings Bond, SGS Bond and SGS Treasury Bill. 

Click on SGS Treasury Bills to apply for T-bills using your CPF OA account. 

You will be shown the T-bill issuance that is currently available for application. Check that the T-bill issuance you wish to buy matches the issue code that is displayed (eg BS231109E).

Step 3: Select transact in T-bill

Next, click on the Transact button next to the T-bill issuance you would like to apply for.

You will be presented with a list of options to apply for the T-bill. 

Select ‘Apply using CPF’ to apply for the T-bill using your CPF OA funds.

Step 4: Input subscription details

Once you have selected to apply for T-bills using CPF, you would need to input your application details.

This would include your residency status, CPF account number, investment amount and 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. Learn more about what to consider when making a competitive bid here.  

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, read the terms and conditions and select the checkbox next to it if you agree.

Check through your application details and press the 'Submit' button.

What is the deadline for T-bill applications online using CPF OA through UOB i-banking?

The deadline for T-bill applications using CPF OA through UOB i-banking is at 9pm two working days before the auction date.

This means that if the T-bill auction is on 11 May 2023 (Thursday), online applications using CPF-OA will end at 9pm on 9 May 2023 (Tuesday).

This the slightly later than the application for T-bills using CPF at its branches, which will close at 12 noon two working days before the auction date.

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

For T-bill applications using CPF-OA via UOB i-banking, there will be a fee of S$2.00 + GST for each 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.

Is it worthwhile to apply for T-bills online using CPF-OA via UOB 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. 

Find out how much more interest you can potentially earn on your CPF OA funds by investing in the T-bill using our T-bill calculator. 

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 online using CPF OA via UOB i-banking?

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

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 open a UOB-CPFIS account through MyInfo. 

Upon successfully submitting an online application for a CPFIS account, an application ID number will be issued to you. You will also receive an email with the application ID number to confirm that the online application has been received.

It will typically take 10 days working to process the CPFIS account online application.

You will receive an email notification within 4 working days after your CPFIS account is opened.

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

Learn more about Singapore Treasury Bills using our comprehensive guide. 

Find out how much more interest you can potentially earn on your CPF OA funds by investing in the T-bill using our T-bill calculator. 

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