Lastest S$ Deposit updates - Part 3

Squaredot

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CPF website says this :


CPF interest is computed monthly. It is then credited to your respective accounts and compounded annually. CPF interest earned in the year will be credited to your CPF accounts by 1 January of the following year.

CPF balances used for interest computation are affected by the transactions in your account.

For instance, contributions (including refunds) received this month start earning interest next month. Withdrawals/deductions in this month will not earn interest from this month onwards

https://www.cpf.gov.sg/members/FAQ/...uted monthly,the transactions in your account.

i rather the bank to deduct mortgage installment in the beginning of the month since amount is not gg to earn any interest while bank loan is monthly rest interest.

anyway it's in the past, just an old man grumbling :s123:
 
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yongsaver

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CPF website says this :


CPF interest is computed monthly. It is then credited to your respective accounts and compounded annually. CPF interest earned in the year will be credited to your CPF accounts by 1 January of the following year.

CPF balances used for interest computation are affected by the transactions in your account.

For instance, contributions (including refunds) received this month start earning interest next month. Withdrawals/deductions in this month will not earn interest from this month onwards

https://www.cpf.gov.sg/members/FAQ/...uted monthly,the transactions in your account.

in that case, maybe better to contribute year end since compounded annually. mmm.
 

vsvs24

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in that case, maybe better to contribute year end since compounded annually. mmm.

But if contribute end Jan still earn interest for 11 mths just that you don't get to see it till 1 yr later.

But those who are still working and afraid they might exceed the max can consider contributing later in the year.
 

yongsaver

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But if contribute end Jan still earn interest for 11 mths just that you don't get to see it till 1 yr later.

But those who are still working and afraid they might exceed the max can consider contributing later in the year.

yep. looks like this is the plan.
 

yongsaver

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I only start to have confident after seeing my sis can suka suka withdraw the excess amount after 55yo (she has reached FRS) within seconds. Only thing is 6 years to me is long. If i have spare cash and no where to park. For sure CPF will be my choice too 😊 especially within current interest climate

Previously i have already throw in over 100k to meet my FRS. It's not that difficult to. If u know your objective :)

u throw in 100K to meet FRS means u self employed tao kay niu all the way?..
 

peppermint7

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u throw in 100K to meet FRS means u self employed tao kay niu all the way?..

Cos my cpf all along very low amount after paying for house. Plus younger days who cares about CPF? Ppl always say CPF $ only got in no out. Until 1 day i chance upon MM and start reading, i learn from Henry, Maple, and the group chatting about it. Then i realise i need to do something. So I hurriedly transfer from OA to SA + top up my SA with cash to meet FRS

Im glad i did 😊

Thanks to the sifu here who shared and bless
 
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vsvs24

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Cos my cpf all along very low amount after paying for house. Plus younger days who cares about CPF? Ppl always say CPF $ only got in no out. Until 1 day i chance upon MM and start reading, i learn from Henry, Maple, and the group chatting about it. Then i realise i need to do something. So I hurriedly transfer from OA to SA + top up my SA with cash to meet FRS

Im glad i did 😊

Thanks to the sifu here who shared and bless

By the time I bother to understand CPF, my SA already hit FRS. So no choice but to do VC. :(
 

peppermint7

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By the time I bother to understand CPF, my SA already hit FRS. So no choice but to do VC. :(

So good. At one point of time my OA has got $ but my SA is close to 0. Now think back, how many years i have wasted on the interest by leaving it that way. Seriously one needs to be awaken sooner in order to experience the power of compound interest

I really wake up late. But im glad i did wake up, after all

I only start to be aware of money management this few years. A bit late. Actually
 
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demoforce1

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So good. At one point of time my OA has got $ but my SA is close to 0. Now think back, how many years i have wasted on the interest by leaving it that way. Seriously one needs to be awaken sooner in order to experience the power of compound interest

I really wake up late. But im glad i did wake up, after all

I only start to be aware of money management this few years. A bit late. Actually

so when can we withdraw from RA, can share getting started? I only do VC for SA now for tax
 

havetheveryfun

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So good. At one point of time my OA has got $ but my SA is close to 0. Now think back, how many years i have wasted on the interest by leaving it that way. Seriously one needs to be awaken sooner in order to experience the power of compound interest

I really wake up late. But im glad i did wake up, after all

I only start to be aware of money management this few years. A bit late. Actually

share some cpf quick tips for beginners ?

top up SA for 7k tax per relief, what else ?
 

TerryPower

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assuming i don't intend to invest my cpf money

OA (other than using it to buy hdb), can i say that OA has no other use and should shift as much as possible to SA?
 

yongsaver

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1. Contribute before the deduction of shield plan premium every year. Because MA limit increase every year. This is so that the equivalent of premium amount goes to OA (if hit FRS).

2. Contribute near mth end rather than beginning of mth. Let your cash earn bank interest in the month. You don't get more CPF interest by contributing at beginning of mth.

3. Pay by paynow so that it is real time update. This way you can contribute close to month end. If pay by enets debit it takes about 3 days before you see it updated.

today tired topping up again with paynow. originally tot max 1K nia. actually no limit on amount and number of times top up per day plus instant update. :eek:

still have headroom for more top up. will do the rest at month end. realised if MA haven reach 60K, average interest is 3.22+%. sweet! :D

also have begun to add OA and SA balance in my spreadsheet to keep track of total funds. the monthly interest from CPF actually not too shabby. :D
 

peppermint7

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assuming i don't intend to invest my cpf money

OA (other than using it to buy hdb), can i say that OA has no other use and should shift as much as possible to SA?

Ordinary Account: Used for housing, insurance, investment, and education.

Eg of insurance which can paid via OA are Home Protection Scheme and DPS

Special Account: Used for retirement and retirement-related investments.

Medisave: Used for hospitalisation and medical insurance.

https://blog.moneysmart.sg/budgeting/cpf-uses-besides-retirement/#:~:text=Ordinary%20Account%3A%20Used%20for%20housing,for%20hospitalisation%20and%20medical%20insurance

Usually after housing is settled. Ppl will set aside amount for kids education, before transferring to top up SA. It is irreversible so got to think carefully..
 
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peppermint7

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so when can we withdraw from RA, can share getting started? I only do VC for SA now for tax

U can only withdraw from RA after u have set aside your FRS. Any amount above FRS can be withdrawn upon 55yo. Provided no policy changes.

Do note that FRS refers to your FRS amount upon 55yo. Not current year FRS
 

vsvs24

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today tired topping up again with paynow. originally tot max 1K nia. actually no limit on amount and number of times top up per day plus instant update. :eek:

still have headroom for more top up. will do the rest at month end. realised if MA haven reach 60K, average interest is 3.22+%. sweet! :D

also have begun to add OA and SA balance in my spreadsheet to keep track of total funds. the monthly interest from CPF actually not too shabby. :D

PayNow is upto local transfer limit.
 
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