Calculate CPF Interest

[doody_]

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!

Err so you're paying the bulk of the cost? Not split equally?

 

[spiritGate]

Err so you're paying the bulk of the cost? Not split equally?

Yup, easier for me to calculate as well. Cause now planning stage, not sure about my gf finance, havent propose yet, so I just use my own portion to calculate

Sent from I am the king of game using GAGT

 

[Cantstop]

can we attend to the counter to query how the calculation?

 

[SBC]

Many guys may overlooks misc items like BSD & legal fee for loan.

BSD is 3% of property less $5400.

 

[henrylbh]

Many guys may overlooks misc items like BSD & legal fee for loan.

BSD is 3% of property less $5400.

Stamp duty and legal expenses relating to acquisition of property should be considered cost of property but not legal fee on mortgage. But many recognise the purchase price only.

 

[Perisher]

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.

Was looking for how cpf calculate interest, whether it's based on daily average balance, this thread is useful. So it's based on lowest per month?

Example you have 5k for 1st-30th January for OA, but on the 31st of Jan you took out 1k, it will be calculated as if you only have 4k for January?
So it would be 4k*3.5%/12 or 4k*3.5%/365*31 for January?

 

[sg_investor]

After you reach 55 and get the RA retirement sum done. Will the SA balance earn the same interest as before if you choose not to withdraw?
I calculate the cpf life is valued at 4% for a 22 year and reach 0. If ond lives beyond 22 you get free income.

 

[kehyi4]

Was looking for how cpf calculate interest, whether it's based on daily average balance, this thread is useful. So it's based on lowest per month?

Example you have 5k for 1st-30th January for OA, but on the 31st of Jan you took out 1k, it will be calculated as if you only have 4k for January?
So it would be 4k*3.5%/12 or 4k*3.5%/365*31 for January?

Yes, CPF interest is calculated based on lowest monthly balance

But this is an interesting question - is CPF interest monthly or daily... (btw, you should use 2.5%, not 3.5%. the extra 1% is paid into SA even if it is earned by OA, thus the effective interest rate for OA only is 2.5%)

lemme check my 2016 OA calculations...

using the mthly method, ie (2.5%/12), gave me the exactly correct OA interest

it looks like CPF just uses the simple mthly method to calculate interest

 

[Perisher]

Yes, CPF interest is calculated based on lowest monthly balance

But this is an interesting question - is CPF interest monthly or daily... (btw, you should use 2.5%, not 3.5%. the extra 1% is paid into SA even if it is earned by OA, thus the effective interest rate for OA only is 2.5%)

lemme check my 2016 OA calculations...

using the mthly method, ie (2.5%/12), gave me the exactly correct OA interest

it looks like CPF just uses the simple mthly method to calculate interest

Asking because I'm using CPF to invest and was wondering if the day that I sell my stocks would matter and thus influence the CPF interest earned. Seems like it won't matters as it only takes into account the lowest amount per month.

That also means we missed out a month of interest every month since my salary cpf is usually credited in the middle of the month instead of start of the month.

Thanks for the calculation.

 

[henrylbh]

Asking because I'm using CPF to invest and was wondering if the day that I sell my stocks would matter and thus influence the CPF interest earned. Seems like it won't matters as it only takes into account the lowest amount per month.

That also means we missed out a month of interest every month since my salary cpf is usually credited in the middle of the month instead of start of the month.

Thanks for the calculation.

It's the day that you buy, not the day you sell that affects CPF interest loss of a month.

 

[badsector]

Asking because I'm using CPF to invest and was wondering if the day that I sell my stocks would matter and thus influence the CPF interest earned. Seems like it won't matters as it only takes into account the lowest amount per month.

That also means we missed out a month of interest every month since my salary cpf is usually credited in the middle of the month instead of start of the month.

Thanks for the calculation.

doody_ has done a pretty accurate spreadsheet shared on MM

 

[Perisher]

It's the day that you buy, not the day you sell that affects CPF interest loss of a month.

Ya, due to the lowest per month effect.

 

[Perisher]

doody_ has done a pretty accurate spreadsheet shared on MM

oh? will search for it. Thanks.

 

[henrylbh]

Ya, due to the lowest per month effect.

FYI, when you buy shares using CPF, the broking firm will request money from your agent bank. If no credit balance, agent bank will request fund from your CPF. Within 2 or 3 days, fund will be deducted from your CPF. That will bring your CPF savings to a lower amount for interest calculation for that month.

When you sell, the money will go to your agent bank. The money with agent bank earns very little interest, but there is no hurry to push the fund back to CPF as it will not earn CPF interest for that month. If want, refund it few days before end of the month. Refund to CPF can be done through ATM. Usually it takes 2 days for the refund to enter your CPF.

Theoretically, the cost of using CPF to buy shares is loss of 2 months' CPF interest excluding agent bank charges of $xxx for each lot of shares and gst.

 

[laksa2003]

Anyone question cpf y the lowest balance is used n not the standard average daily balance?

 

[Perisher]

FYI, when you buy shares using CPF, the broking firm will request money from your agent bank. If no credit balance, agent bank will request fund from your CPF. Within 2 or 3 days, fund will be deducted from your CPF. That will bring your CPF savings to a lower amount for interest calculation for that month.

When you sell, the money will go to your agent bank. The money with agent bank earns very little interest, but there is no hurry to push the fund back to CPF as it will not earn CPF interest for that month. If want, refund it few days before end of the month. Refund to CPF can be done through ATM. Usually it takes 2 days for the refund to enter your CPF.

Theoretically, the cost of using CPF to buy shares is loss of 2 months' CPF interest excluding agent bank charges of $xxx for each lot of shares and gst.

Nice information. The refund cannot be done online?
I use CIMB to buy/sell but the CPFIS is done through OCBC, so the agent bank atm you are referring to is CIMB or OCBC?

 

[henrylbh]

Nice information. The refund cannot be done online?
I use CIMB to buy/sell but the CPFIS is done through OCBC, so the agent bank atm you are referring to is CIMB or OCBC?

Cimb is broking firm. Ocbc is agent bank where your cpf money for buying and selling through.

 

[chuanz]

Nice information. The refund cannot be done online?

My agent bank is UOB. Their internet banking have a "Transfer to CPF" button.

 

[henrylbh]

Interest on CPF interest depends on the level of balance in each of the 4 accounts.

Retirement Account Up to 6%. First 30k 6%, next 30k 5% and excess 4%.

 

[angel_i16]

Hi all

If my od ac lets say have 8k, can i still earn 3.5 % interest since i do not reach 20k in my od ac? First 20k doesn't mean that i need to reach 20k right?