What happens at maturity
Because a T-bill is a zero-coupon instrument, there are no interim interest payments. Your return is the gap between the discounted price you paid and the face value you receive at maturity.
At maturity the full face value is paid to you automatically. There is nothing to sell and no action required to receive it.
Where the money goes
The payout follows the route you bought it through. Cash T-bills held in CDP pay to your linked bank account. SRS-funded T-bills return to your SRS account. CPF-funded T-bills return to the relevant CPF investment account.
If you want to keep the money working, you simply apply for a new T-bill at the next suitable auction — this is the basis of a T-bill ladder.
Exiting before maturity
If you need your money before maturity, T-bills can be sold on the secondary market through the banks. The price you get depends on prevailing interest rates at the time, so you could receive more or less than you expect.
For most savers who only invest money they can leave untouched for the term, holding to maturity is the simplest path.
Check the latest at the source
Yields, calendars and rules change. Confirm current details on the official Monetary Authority of Singapore (MAS) website before you act.
MAS bonds & bills ↗This guide is general educational information, not financial advice. T-Bills Singapore is independent and not affiliated with MAS, the CPF Board or any bank. Consider your own circumstances and, if in doubt, speak to a licensed financial adviser.
