OCBC 3.5% transfer from CPF OA at 2.5%

[Firday]

What your views for the above ?

 

1. Not much differ about $280 extra

2. Only a year but afterthat - can transfer back to OA - 

3. There no compounding in FD while OA can do compunding interest

 

Let share your view :

 

[Firday]

https://www.businesstimes.com.sg/banking-finance/ocbc-offers-fixed-deposit-placements-for-cpf-ordinary-account-savings-at-34-a-year

Edited November 16, 2022 by Firday

[Firday]

https://forums.hardwarezone.com.sg/threads/ocbc-offers-fixed-deposit-placements-for-cpf-ordinary-account-savings-at-3-4-a-year.6836093/

[Firday]

yes i think i let it pass after the consideration

 

[keyboard]

First 20k from OA cannot be invested. Only that amount is 3.5% (think provided you dont have 60k elsewhere?)

HWZ Moneymind got a full thread about such stuffs. But there's a lot of misconception there too.

 

In short, this is OKish. Tbill (every 2 weeks) is now at 4% (4wks ago is 4.19%) subjected to availability. Banks are losing money left and right to Tbill thus having CPF FD.

 

Timeline, Dec likely another 0.5% increase. Another 0.5% increase in Feb. Target is 4.5% by early next year.

The chances OA increases interest rate feels non-existent - due to HDB loans.

[keyboard]

Infographic on minimum yield outside CPF (due to CPF not calculating interest for month of withdrawal and deposit).

https://forums.hardwarezone.com.sg/threads/singapore-treasury-bills-t-bills.6769601/post-144870827

1-month lag (tbill mid-month issue)

6-month OA 2.92% SA 4.67%

1-year OA 2.71% SA 4.33%

2-month lag (tbill end-month issue)

6-month OA 3.33% SA 5.33%

1-year OA 2.92% SA 4.67%

Bank also have charges and quarterly fees to account for on top of the loss of interest. At a rate of 4% on Tbill which you also need to go early to get a queue number at the bank these days. CPF application closes way earlier than cash.

[keyboard]

On 11/16/2022 at 7:17 PM, Firday said:

yes i think i let it pass after the consideration

Are you considering putting into this round of Tbill with competitive bid of 3.8%? Physical bank forms submission likely close tomorrow noon.

[keyboard]

Don't have account on HWZ mah, plus those people i don't know.

[keyboard]

After 6 months transfer back to OA can do online. So not much an issue. Is the unknown of how long queuing up at the bank that is turn off.

So based off 100k, 3.8% - 2.92% = (100k * 0.89%) / 2 = additional $445 for 6 months

Doesn't look to worth it to spend time at the bank.

[keyboard]

i know some here.

 

 

@Firday 4.4% for latest issue. 

https://www.mas.gov.sg/bonds-and-bills/auctions-and-issuance-calendar/Auction-T-bill?issue_code=BS22124H&issue_date=2022-12-13

Non-competitive bid - got 100% allocated (1.2b / 0.4*4.6b = 65% non-comp applied - undersubscribed)

Competitive bid at 4.4% - 82% allocated

Competitve bid at <4.4% - 100% allocated

[keyboard]

https://www.cnbc.com/2022/12/14/fed-rate-decision-december-2022.html

last night - +0.25% to 4.375% (range 4.25-4.5%)

2023 Feb 1 +0.25%

2023 Mar 22 +0.25%

end 2023 reach 5.1% (range 5-5.25%)

end 2024 4.1%

end 2025 3.1%

normal 2.5%

 

quick market crash likely next year - can put CPF into stocks also for quick turnaround. t-bill is 6mths, please plan accordingly.

Edited December 20, 2022 by keyboard

[keyboard]

Thanks to the other BWer to help compare notes for today's outing at different branches. 😁

 

Things to prepare (does not mean everything will be checked/used - Items in ())

1. CPF online - my cpf - My Dashboards - Investment - For Ordinary Account - Agent Bank (can only apply at this bank) (1) - CPF Investment Account number (2)

2. If using CPF SA - can go apply from any bank

3. Amount available for professionally managed products = CPF OA - 20k (First 20k cannot invest) (3)

4. my cpf - My Requests - Expand Investment - Check my CPFIS Self-Awareness Questionnaire (SAQ) Status - Download PDF (4)

5. MAS T-bill Auction Number https://www.mas.gov.sg/bonds-and-bills/Singapore-Government-T-bills-Information-for-Individuals e.g. BS22125T (5) 6-Month T-bill (New) Issue Date 27 Dec 2022 (6) (Bank application opens usually on 2nd day to one day before online/ATM closing day)

6. In my case DBS bank, go to any branch, cut queue and ask to apply for CPF OA T-bill, might/might not give queue number as it's handled by the RM (or investment counter)

7. My case was reached 1555, had to ask 3 roving staffs to get a proper "queue", waited for the RM 1420.

8. RM tried to upsell some FD product over 5 years but non-guaranteed but will beat public FD rates till 1500.

9. 1500-1510 Form filled, counterchecked by staff and that's it. Take photo before they countercheck, previously HWZ got people fax form never reach MAS.

10. No news on when CPF T-bill will move to online platform

11. Bank fees/quarterly fee/deduction from CPF latest by issue date upon successful allocation

12. Remember to ibank transfer back to CPF upon maturity

 

Waiting Time: 25 mins

Form fill and checked: 10 mins

Upsell: 40 mins

 

2 paged form

Page 1: DBS Primary Market CPF-OA Application Form

Name, IC, Mobile

Issue Code: (5) - pre-printed

CPF Investment Account No: (2)

To avoid an unsuccessful debiting fee of 0.05% of the unsuccessful investment amount, I will ensure that I have sufficient monies in my CPF Account for my intended investment amount. Unsuccessful investment amount refers to any amount in the application form that is unallocated because the Bank is unable to debit the CPF Account successfully. In the event that a partial allocation happens, an unsuccessful debiting fee will still be charged.

I authorise the Bank to deduct any unsuccessful debiting fee from my DBS Bank Account(s).

Fill in any DBS Bank Account number

 

Important Note to CPF members on CPFIS SAQ

If you do not have a CPFIS account*, you must take the Self-Awareness Questionnaire (SAQ) before you can invest under CPFIS. The SAQ is to help CPF members self-assess if they have basic financial knowledge and whether the CPFIS is suitable for them.

You can access the SAQ via the CPF website after logging in with your SingPass. If you have a CPFIS account, you are encouraged to take the SAQ.

*CPF member is deemed to have a CPFIS account if he/she has ever had a CPF Investment Account held with an Agent Bank under the CPFIS OA or has ever invested under the CPFIS-SA.

 

Page 2: MAS APPLICATION FOR BOOK - ENTRY GOVERNMENT SECURITIES

Issue Code: (5) - pre-printed

Issue Date: (6) -  pre-printed

Nominal amount (in multiples of $1,000): $ | _ | _ | _ | _ | _ | _ | 0 0 0 (3)

at *non-competitive bid/the yield of | _ | _ | _ | _ | (The yield for competitive bids must be in percentage terms up to 2 decimal) e.g. 4.44% = 0444

Name,Address,NRIC,CPF Account No (NRIC), Nationality

Tick CPFIA OR CPFSA

CPFIA Account (2) / Agent Bank

Edited December 15, 2022 by keyboard

[keyboard]

https://www.dbs.com.sg/personal/deposits/promotions/sgd-fixed-deposit-anr3m.page

3.6% p.a. on 3-month minimum amount of S$20,000 or more. Maximum capped at S$1,000,000 per placement. No cap on number of placements.

Promo Code: SRNA

 

[keyboard]

T-bill CPF-OA is now available from internet banking. Note the 7/8 months loss of interest via the Auction/Maturity Dates.

 

Securities Name	Closing Date	Securities Type	Payment Method
BS23102H	01 Feb 2023	T-Bill	Cash, SRS, CPF

Note: For payment by CPF, cut-off time is one working day earlier at 12 noon.