Calculate CPF Interest

[spiritGate]

Do anyone know how does CPF calculate the interest for Ordinary Account?

Monthly Compound interest? every half a year they calculate once?

the percentage is 2.5% right?

The reason why I asked this is because I intent to purchase condo before I hit 30 years old. So need to see what kind of condo I can get when I hit that age. Certainly, my gf (future wife) will help out as well.

 

[Perisher]

Do anyone know how does CPF calculate the interest for Ordinary Account?

Monthly Compound interest? every half a year they calculate once?

the percentage is 2.5% right?

The reason why I asked this is because I intent to purchase condo before I hit 30 years old. So need to see what kind of condo I can get when I hit that age. Certainly, my gf (future wife) will help out as well.

OA's first 20k earns 3.5%
An extra 1% interest per year is currently paid on the first $60,000 of a member’s combined balances, of which up to $20,000 comes from t***he OA.

If I'm not wrong, interest is only compounded yearly, not monthly.

 

[wts2013]

CPF recently introduced 2 apps, u can download and play with it:

CPF starter and CPF tools

https://mycpf.cpf.gov.sg/Members/Services/others/esvpages/e-services/mobile

 

[kehyi4]

CPF interest is calculated monthly, based on the lowest balance that month.

It's added to your account only at the end of the year, so compounded yearly.

 

[dork32]

OA's first 20k earns 3.5%
An extra 1% interest per year is currently paid on the first $60,000 of a member’s combined balances, of which up to $20,000 comes from t***he OA.

If I'm not wrong, interest is only compounded yearly, not monthly.

the extra 1% go to sa, not oa

 

[Perisher]

the extra 1% go to sa, not oa

Eh, I did not say it goes to OA... But I can see why it's misleading, my bad.

 

[dork32]

Eh, I did not say it goes to OA... But I can see why it's misleading, my bad.

the reason i mention this is because ts wants to plan for his condo. interest credited into the sa does not count towards his condo fund.

 

[OngHuatHuat]

Do anyone know how does CPF calculate the interest for Ordinary Account?

Monthly Compound interest? every half a year they calculate once?

the percentage is 2.5% right?

The reason why I asked this is because I intent to purchase condo before I hit 30 years old. So need to see what kind of condo I can get when I hit that age. Certainly, my gf (future wife) will help out as well.

Compound monthly but only recorded yearly.

 

[path_of_rainbow]

OA's first 20k earns 3.5%
An extra 1% interest per year is currently paid on the first $60,000 of a member’s combined balances, of which up to $20,000 comes from t***he OA.

If I'm not wrong, interest is only compounded yearly, not monthly.

Is it 2.5% or 3.5%?

 

[Perisher]

Is it 2.5% or 3.5%?

3.5% on first 20k of OA.

http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/9C2CBF3A5093ECD248257E450021C0E1?OpenDocument

 

[henrylbh]

Compound monthly but only recorded yearly.

kehyi4 in post #4 is more correct in his explanation. It is not compounded monthly. The amount earned each month is credited only at end of the year.

 

[liquidy]

Here's a page I read about computation. Not sure how true as I have yet to validate it.

http://sti-stocksinfo.blogspot.sg/2009/08/calculating-cpf-interests.html?m=1

 

[spiritGate]

Thanks for all the reply, yea it is quite confusing for me as well. Cause have to plan swee swee before executing my plan. hahaha.

 

[spiritGate]

Here's a page I read about computation. Not sure how true as I have yet to validate it.

http://sti-stocksinfo.blogspot.sg/2009/08/calculating-cpf-interests.html?m=1

yea yes, this page is correct. take the lowest of the month and calculate. I calculate le and is correct. Thanks for the info.

Also the interest rate is 2.5% for OA

 

[chopra]

Thanks for all the reply, yea it is quite confusing for me as well. Cause have to plan swee swee before executing my plan. hahaha.

My take is u should not plan until so swee. Have buffer.

 

[doody_]

Thanks for all the reply, yea it is quite confusing for me as well. Cause have to plan swee swee before executing my plan. hahaha.

Is there a need to calculate until so exact? Better to leave some buffer in case your calculations are slightly off.

 

[OngHuatHuat]

kehyi4 in post #4 is more correct in his explanation. It is not compounded monthly. The amount earned each month is credited only at end of the year.

Yes, you are right. Lose out one year of compounding on the interest component.

 

[spiritGate]

Is there a need to calculate until so exact? Better to leave some buffer in case your calculations are slightly off.

My take is u should not plan until so swee. Have buffer.

yea true also. the reason why I need to maximize is cause my buffer is with my gf(wife), I wont touch her savings, a maybe a little if possible.

but will see how it goes. Thanks guys!

 

[kehyi4]

Good luck and jiayou :thumbsup:

It's quite "fun" to try to max out the gain from CPF (and min the liabilities). feels quite shiok if you get it right and "win" the system

 

[spiritGate]

Good luck and jiayou :thumbsup:

It's quite "fun" to try to max out the gain from CPF (and min the liabilities). feels quite shiok if you get it right and "win" the system

yea, I hope to understand more about it so to maximize and see whether if I can hit my target in getting 2 bedroom condo.

If can get it then is really super shiok