CPF interest coming tonight

[snowcrabramyeon]

borrow cheaply from singaporeans still want to stiff us out interest.

What talking you? 2.5%/4% interest is call cheap? Ah boh you prefer bank interest? Bank interest most years just give you peanuts nia.

 

[luei74]

If FRS and BHS full for below age 55.

Wages go in all directed to OA, won't go above FRS?

Wages will still split into the 3 accounts like post #9379 explained

 

[compro_1975]

you are wrong. its 65

https://www.cpf.gov.sg/service/article/what-is-the-basic-healthcare-sum

Opppsss thanks for pointing out... jialat means I need work till 65 to keep afloat.. my interest enuf gor new balance lor

 

[testerjp]

No leh, wages go in still split between the 3 account. For the amount that goes into SA, will still go into SA even if hit the FRS. For the amount that goes into MA, it will flow to OA. For the amount that goes into OA, will still go into OA.

Don't know leh, i asked AI it says this so i'm confused

• MA at BHS + SA already set aside FRS → SA cannot take more overflow.
• Excess CPF from wages spills into OA, earning 2.5% p.a.

 

[KnyghtRyder]

Dear sexperts, how come today got auto transfer of 2.9k from my MA to OA?

Because your MA hit the cap liao.. any extra overflows into your OA if your SA exceeds the FRS.

 

[Hakuna Matata]

For those received little interest. Your time will come. Happy New Year to all.

 

[luei74]

How to post picture ah

https://uploadimgur.com/

Use the above and just copy n paste the link below

 

[KnyghtRyder]

MA cap haven't increase to 2026 level. Not sure if later can tx from OA to MA to hit cap

Tx from OA to MA?

 

[KnyghtRyder]

how come OA is idling?

Some of it is invested.. some of it keeping around to pay for housing.

 

[KnyghtRyder]

dun understand why they must transfer MA interests to SA every year....

They going by principle.

 

[compro_1975]

I was thinking for people who are getting 60k in interest, can they just draw the monthly interest for a living instead of touching the principal?

 

[dry_county]

How much is the tax relief after topping up $3.5k cash to MA?

$3,500 in tax relief. The tax savings depends on your marginal tax rate.

 

[compro_1975]

How to post picture ah

Host in imgur lor

 

[Slowdown]

Yup.and int rate is counted based on the lowest balance in jan 2026. Say ur balance is 20k, u draw out 1000 then put in 1500. Ur balance is 20500, but interest rate calculation take only $19K not 20500.

If I understand correctly, the lowest balance (in your use case) is 20K, not 19K. I believe there were discussion on this topic and someone wrote to CPF Board to clarify. I believe the answer is that CPF Board will consider all the inflow and outflow of the month to find the net flow. Inflow need not be ahead of outflow. Just need to be in the same month. So in your case, the net flow for the month is positive 500. Since contribution for that month is ignored, the lowest balance is still 20K.

 

[fandango]

Correct

How much did you refund back?

 

[fandango]

I was thinking for people who are getting 60k in interest, can they just draw the monthly interest for a living instead of touching the principal?

But the interest is only issued on 1st Jan of every year.

Therefore, you can technically withdraw the example of $60k interest, and not touch the principle.

Yesterday @orwell76 had a post on this.

 

[jackiehuat]

If I understand correctly, the lowest balance (in your use case) is 20K, not 19K. I believe there were discussion on this topic and someone wrote to CPF Board to clarify. I believe the answer is that CPF Board will consider all the inflow and outflow of the month to find the net flow. Inflow need not be ahead of outflow. Just need to be in the same month. So in your case, the net flow for the month is positive 500. Since contribution for that month is ignored, the lowest balance is still 20K.

Contributions earn interest from the following month, but withdrawals cease earning interest from the current month. It is not based on the lowest.

https://www.dbs.com.sg/personal/articles/nav/investing/investing-in-t-bills

 

[weng0202]

This is mine

 

[jinsatkilife]

But the interest is only issued on 1st Jan of every year.

Therefore, you can technically withdraw the example of $60k interest, and not touch the principle.

Yesterday @orwell76 had a post on this.

do the interest compound monthly? or they just take lowest balance for each month, then they add them all up by applying 2.5 -4%

 

[weng0202]

do the interest compound monthly? or they just take lowest balance for each month, then they add them all up by applying 2.5 -4%

Apparently they don't or else should get a lot more.