Why I Stopped Buying T-Bills (And Where I’m Stashing My Cash Now)

 

Back in late 2022, Singapore’s 1-year and 6-month T-bills were my go-to options for spare cash and CPF OA funds, thanks to risk-free returns exceeding 3.3%. However, with the latest 6-month T-bill yield dropping to 2.73%, locking up funds for six months is no longer as attractive.

CPF OA: Stick or Switch?

For CPF Ordinary Account (OA) funds, the current T-bill rates don’t make sense when you factor in transaction fees, service charges, and the loss of OA’s guaranteed 2.5%interest. Unless rates increase significantly, keeping CPF OA money in OA remains the smarter choice.

Alternatives for Spare Cash in 2025

With high liquidity as my top priority, here’s where I’m parking my spare cash:

1. MariBank Savings Account (2.5% + SDIC Insured)

• Instant Access: No lock-in period, withdraw anytime.
• Daily Interest Crediting: Earn interest daily.
• Safety First: SDIC protection up to $100,000.
• Bonus: Use referral code 2HNL05JZ for free cash (details below).

2. Mari Invest SavePlus (2.75% – Higher Than T-Bills!)

• Partial Liquidity: Withdraw $10k instantly; larger amounts take T+1 working day.
• Daily Interest Crediting: Earn interest every day.
• Low Risk: Backed by MAS Bills and bonds.
• Caveat: Returns may fluctuate.

Higher Yield Option for Risk-Takers

For those willing to take on more risk, Mari Invest Income currently offers 4.23% returns. However, I did not go for it since I already have my own ETFs and stocks for higher-risk investments.

Key Considerations for 2025

• Liquidity is King: Given market volatility, I want the flexibility to seize opportunities when they arise.
• Risk vs. Return: With T-bills offering lower rates, high-yield savings and low-risk investment accounts provide better alternatives.

Final Thoughts

In 2025, T-bills are no longer my first choice for spare cash. Instead, I’m focusing on liquid, low-risk, and competitive-yield options. How about you? Where are you keeping your cash? Let us know in the comments!

Use my referral link (2HNL05JZ) and sign up for Maribank to get Free Money! Find out more about Maribank here and more about the updated referral benefits here.

Thanks for reading and do support me on my referral page.

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