DBS Bank CPF Investment Account: Is It Worth Investing Your CPF?

DBS Bank's CPF Investment Account is a popular option for Singaporeans looking to grow their CPF savings.

You can invest up to 50% of your CPF Ordinary Account (OA) balance in the DBS CPF Investment Account.

This means you can potentially earn higher returns on your CPF savings compared to the standard interest rates.

Additional reading: Savings and Investment Bank

To open a CPF Investment Account with DBS, you'll need to meet a few basic requirements. You must be at least 18 years old.

First, check if you have more than S$20,000 in your CPF Ordinary Account (OA). If not, you won't be eligible.

You'll also need to complete the Self-Awareness Questionnaire (SAQ) on the CPF website. This quiz will help you determine if investing is right for you.

To start the application process, log into DBS Internet Banking. You'll then need to fill out the application form, providing your details.

Once you've reviewed the application, submit it and wait for an SMS or letter in the mail – usually within 3-5 working days.

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To apply for T-bills using your CPF OA account, select 'T-bill' on the DBS i-banking platform.

You can confirm your application details using CPF-OA to ensure everything is correct.

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

You'll need to select your payment model, which includes Cash, SRS, or CPF-OA, and choose CPF-OA to apply for T-bills.

Input your application details, including whether you want to make a competitive or non-competitive bid.

For competitive bids, you'll need to specify the yield you're willing to accept, up to 2 decimal places.

A non-competitive bid allows you to invest in the bond regardless of the return, and you'll get the bond at the cut-off yield.

The minimum application amount for T-bills is S$1,000, and you must put in application amounts in multiples of S$1,000.

You can choose to invest in the bond only if it yields above a certain level by submitting a competitive bid.

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To apply for T-bills using your CPF OA account, you'll need to select the payment model, which includes Cash, SRS, or CPF-OA.

You'll be asked to put in your application details, including whether you want to make a competitive or non-competitive bid.

For competitive bids, you'll need to specify your bid yield, which can be up to 2 decimal places.

The minimum application amount for T-bills is S$1,000, and you'll need to apply in multiples of S$1,000.

You'll need to select your payment model, which can be Cash, SRS, or CPF-OA. To apply for T-bills using your CPF OA account, choose CPF-OA.

For your application details, you'll need to decide on a competitive or non-competitive bid. A competitive bid requires specifying a bid yield, which can be up to 2 decimal places.

If you choose a competitive bid, you'll need to specify the yield you're willing to accept in percentage terms. Note that you may not get the full amount you applied for, depending on how your bid compares to the cut-off yield.

On a similar theme: High Yield Brokerage Account

In a non-competitive bid, you only need to specify the amount you want to invest, without considering the return. You'll get the bond at the cut-off yield, which is the highest accepted yield of successful competitive bids.

You'll need to enter the amount of T-bills you'd like to apply for using your CPF-OA, with a minimum application amount of S$1,000. Application amounts must be in multiples of S$1,000.

The T-bill application deadline is earlier than you might think. If you're applying through DBS i-banking using your CPF OA account, you'll need to submit your application by 12pm (noon) two business days before the auction date.

To give you a better idea of what that looks like, let's say the T-bill auction is on a Thursday. In that case, your online application would need to be in by Tuesday at noon.

If you're planning to apply in cash, the deadline is slightly later, closing at 9pm one business day before the auction date.

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The charges for T-bill applications using CPF OA via DBS i-banking are S$2.50 + GST for each transaction.

This fee will work out to S$2.70 per transaction, so make sure to factor that in when applying for T-bills.

You should be aware of this fee, especially if you're used to not having any charges incurred for your cash applications.

To open a CPF Investment Account, you can follow Uncle's simple guide and choose from banks like DBS, OCBC, or UOB.

It's generally more worthwhile to use your CPF OA to invest in a T-bill when the bond has a longer maturity.

You'll lose an additional one or two months of CPF interest payment when using your CPF to invest in the T-bill, which is something to consider.

There are also risks involved with investing in T-bills, including the possibility of the price falling if interest rates go up.

For more insights, see: High Interest Investment Account

When applying for a T-bill using your CPF-OA, you won't lose out on your interest if your application isn't successful, since no funds will be debited at the point of application.

The key difference between T-bill applications and cash applications is that funds are not debited from your CPF-OA account at the point of application for T-bills, but are debited for cash applications.

This means you can apply for a T-bill without worrying about losing your CPF-OA interest, giving you more flexibility with your finances.

For more insights, see: Mutual Funds Nre Account

Applying for T-bills using CPF-OA via DBS i-banking can be a good option, but there are some things to consider. You'll lose an additional one or two months of CPF interest payment.

It's generally more worthwhile to use your CPF OA to invest in the T-bill when the bond has a longer maturity. This is because you'll earn interest for a longer period.

However, there are also risks involved. The price of the T-bill could fall if interest rates go up.

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