CPF Information
CPFIS Changes
Starting from 1st July 2010, the first $40,000 of members’ Special Account(SA) balances will no longer be allowed for investments. The previous limit for 2009 is $30,000.
There is no change to the requirement for members to set aside $20,000 in the Ordinary Account (OA) before they can invest their Ordinary Account monies.
Members will still be able to use sums above $40,000 in their SA to invest. If you have already bought investments under CPFIS-SA but do not have $40,000 in your SA, you will not be required to sell them. However, when you liquidate these investments, you would not be able to re-invest them unless you have at least $40,000 in your SA. Additionally, standing instructions for monthly deductions of SA into investments will cease if there is less than S40,000 in your SA.
CPF Interest Rates
CPF Interest Rates (01 Apr 2010 to 30 Jun 2010)(reviewed quarterly)
Ordinary Account – 2.50%
Special & Medisave Accounts – 4.00%
CPF Interest Rates (01 Jan 2010 to 31 Dec 2010)(reviewed yearly)
Retirement Account – 4.00%
The Government will maintain the 4% p.a. minimum rate for interest earned on all Special and Medisave Accounts (SMA) monies and Retirement Account (RA) monies until 31 December 2010. After which, a 2.5% minimum rate will apply for all CPF accounts.
In addition, an extra 1% interest will be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the OA and the rest on SMA or RA. The extra interest from the OA will go into the member’s SMA or RA to improve his retirement savings.
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