| Always remember that you are earning a minimum of 2.5% per annum for savings in your Ordinary Account and 4% per annum for savings in your Special Account – this is guaranteed and is risk-free.
Thus, before investing your CPF savings, it is only prudent for you to ask: Can the expected net returns at least match or come close to the interest that I am getting?
It’s not always possible to reach a clear answer. But you should always be conscious of the CPF interest rate when considering whether to invest your CPF savings.
| In 2002, the Government accepted the Economic Review Committee (ERC)'s recommendation that the Special Account interest rate be pegged to a more appropriate long-term interest rate, such as the yield on long-term government bonds. The ERC's view is that this is a more rational basis than the current system of assigning a fixed premium over short-term rates (i.e. Ordinary Account rate plus 1.5 percentage points) as the Special Account interest rate. CPF Board is studying this. |
Read more about the CPF interest rate http://www.cpf.gov.sg/cpf_info/interest.asp.
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