Thursday, 18 June 2020
The folks at CPF Board answer your burning questions about CPF
Read? The folks at CPF Board answer your burning questions about CPF
Jen, 30 (no picture)
Q2: What’s the highest return rate for my CPF that I can get?
Answer: Currently, you earn interest rates of up to 3.5% per annum on your Ordinary Account (OA) monies, and up to 5% per annum on your Special and MediSave Account (SMA) monies. Retirement Account (RA) monies earn up to 5% per annum.
These interest rates include an extra 1% interest paid on the first $60,000 of your combined balances (with up to $20,000 from the OA).
If you’re aged 55 and above, you will also earn an additional 1% extra interest on the first $30,000 of your combined balances (with up to $20,000 from the OA). As a result, you will earn up to 6% interest per year on your retirement balances.
CW8888's computation of his yearly RA interests
=(RA balance at 1 Jan - $60,000)*4% + $30,000*5% + $30,000*6%
Subscribe to:
Post Comments (Atom)
Subscribe To
Posts
Comments
The "simplified formula" to calculate the interests earned in our RA is :
ReplyDeleteRA amount x 4% + $900.
This formula works for RA amount of $60,000 and above.
Try it. :-)
$900 looks so little.
DeleteExtra 1% on $30,000 @ 5% and another extra 1% on $30,000 @ 6%.
5% and 6% risk free return looks juicy! LOL!
money remaining in Ordinary account will be earning interest at 2.5% no?
ReplyDeleteThat right! CPF OA 2.5% SA 4%
Delete