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%

at

4 comments:

  1. mysecretinvestment18 June 2020 at 21:41:00 GMT+8

    The "simplified formula" to calculate the interests earned in our RA is :

    RA amount x 4% + $900.

    This formula works for RA amount of $60,000 and above.

    Try it. :-)

    ReplyDelete
    Replies
    1. Createwealth888818 June 2020 at 21:50:00 GMT+8

      $900 looks so little.

      Extra 1% on $30,000 @ 5% and another extra 1% on $30,000 @ 6%.

      5% and 6% risk free return looks juicy! LOL!

      Delete
  2. zphoe19 June 2020 at 11:34:00 GMT+8

    money remaining in Ordinary account will be earning interest at 2.5% no?

    ReplyDelete