Wise to use CPF to buy T-bill?

There seem to be many different directions of objective analysis. Should we try? Madalin Stunt Cars.

CPF interests is calculated monthly based on the lowest balance of the month.

Therefore, when money is deducted from CPF account, you will miss the interests for the deducted amount in that month; and when money is credited back to CPF account, it only begins to earn interests from the following month onwards.

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If you look at the timeline of the T-bill application, the whole process from auction date to maturity date can take 7 or 8 months, depending on whether the auction date and issue date cross over different months.

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In other words, you will miss 7 to 8 months of CPF interests for 6 month of T-bill yield. Therefore, you will need 7/6 or 8/6 T-bill interest rate to breakeven.

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Lets take CPF OA 2.5% interest as example. the breakeven T-bill yield would be 2.92% across 7 months, or 3.33% across 8 months.