CPF Account Value Thread 2024

[Guojing88]

Was the excess Medisave transferred finally?

 

[sdexxxxd]

Was the excess Medisave transferred finally?

Yes trsf and back to 71.5k.
Can top up to 2025 BHS liao

 

[hwarzoner]

Yes trsf and back to 71.5k.
Can top up to 2025 BHS liao

may i know the benefits of topping up to 2025 bhs n how?

 

[Slowdown]

If you top up 4K now, you get tax relief (cap at 8K for individual). Let say your highest income Tax bracket is 11.5%. Then you pay $460 less tax.

Google cpf medisave top up. It should bring you to the cpf page. Follow the instructions and it will generate a paynow code for you to pay cash.

may i know the benefits of topping up to 2025 bhs n how?

 

[BBCWatcher]

If you top up 4K now, you get tax relief (cap at 8K for individual). Let say your highest income Tax bracket is 11.5%. Then you pay $460 less tax.

Exactly the same benefit you get if you add cash to MediSave on January 31 instead of January 1.

Unless you’re trying to beat a payroll cycle contribution or MediSave reimbursement, you should wait. You earn at least bank interest on cash. Set a reminder to yourself on your smartphone and/or smartwatch to make your cash deposit to MA a couple days ahead of your next expected addition to MA, such as your payroll cycle date.

 

[BBCWatcher]

If you’re age 55+ and planning to withdraw SA/OA dollars this month (because SAs are closing later this month), do that now, early in the month. You’ve already decided you’re not going to earn January 2.5% p.a. interest on those dollars, so you might as well earn at least daily bank interest elsewhere.

 

[dgeralds]

I have the following today in CPF. Im 58.

OA 94.3K
SA 309.3K
MA 71.5K
RA 355.6K

I will top up ERS to max at close to end of this month.
I went into CPF to find out how much maximum I can top up my ERS by cash. It is $117.3K

Is this amount correct? Because Im thinking max ERS in 2025 is $426K. But 355.6K + 117.3K is way above $426K.

Thank you.

 

[BBCWatcher]

I have the following today in CPF. Im 58.
OA 94.3K
SA 309.3K
MA 71.5K
RA 355.6K
I will top up ERS to max at close to end of this month.

It'd be better if you did that within the next several days. The CPF Board has said that if you transfer funds directly from SA to RA then you'll earn 4% p.a. interest on those transferred dollars for the month of January. If the dollars first land in OA (when SA closes), it's unclear. SAs will be closed sometime during the second half of January (this month).

For reference, one month of interest on $117.3K at 4.0% p.a. is $391.

Allow room below the ERS for a transfer in — a spouse transferring his/her OA dollars into your RA, for example — if you/your loved one plan to do that.

I went into CPF to find out how much maximum I can top up my ERS by cash. It is $117.3K.
Is this amount correct? Because Im thinking max ERS in 2025 is $426K. But 355.6K + 117.3K is way above $426K.

Yes, it's correct. The ERS is based on principal only. Every time the ERS is raised you'll have some room for another top up (or transfer in).

 

[dgeralds]

It'd be better if you did that within the next several days. The CPF Board has said that if you transfer funds directly from SA to RA then you'll earn 4% p.a. interest on those transferred dollars for the month of January. If the dollars first land in OA (when SA closes), it's unclear. SAs will be closed sometime during the second half of January (this month).

For reference, one month of interest on $117.3K at 4.0% p.a. is $391.

Allow room below the ERS for a transfer in — a spouse transferring his/her OA dollars into your RA, for example — if you/your loved one plan to do that.

Yes, it's correct. The ERS is based on principal only. Every time the ERS is raised you'll have some room for another top up (or transfer in).

Hi BBCWatcher. Thank you for your guidance. I will be transferring CASH into RA (not from SA to RA). So should I do it now or closer to end of the January?

 

[BBCWatcher]

Hi BBCWatcher. Thank you for your guidance. I will be transferring CASH into RA (not from SA to RA). So should I do it now or closer to end of the January?

Are you sure you want to do that (instead of an SA to RA transfer)(*)? I can think of two reasons you might do that: (1) You find OA's 2.5% interest rate attractive; (2) you highly value the asset protection aspects of CPF. This also assumes you don't have other reasonable ways to inject "enough" dollars into CPF when you want to do that.

Personally I don't think those bars are cleared for our household, so it'll be an SA to RA transfer in a few days. But of course you may feel differently.

If you're going to use cash then you'd do it on January 30 (for example). It'd be fairly silly not to enjoy at least the daily bank interest on that cash for 29 days.

(*) OA to RA transfers, such as cross-spousal transfers, can be even better if that option is available in your household or extended family. Particularly if the donor is under age 55, meaning that his/her OA dollars are effectively "liberated." (You could hand that donor cash if you wish.)

 

[dgeralds]

Are you sure you want to do that (instead of an SA to RA transfer)(*)? I can think of two reasons you might do that: (1) You find OA's 2.5% interest rate attractive; (2) you highly value the asset protection aspects of CPF. This also assumes you don't have other reasonable ways to inject "enough" dollars into CPF when you want to do that.

Personally I don't think those bars are cleared for our household, so it'll be an SA to RA transfer in a few days. But of course you may feel differently.

If you're going to use cash then you'd do it on January 30 (for example). It'd be fairly silly not to enjoy at least the daily bank interest on that cash for 29 days.

(*) OA to RA transfers, such as cross-spousal transfers, can be even better if that option is available in your household or extended family. Particularly if the donor is under age 55, meaning that his/her OA dollars are effectively "liberated." (You could hand that donor cash if you wish.)

Hi BBCWatcher

I have monies in SSB (up to max) and some in Tbills. 150K in OUB one account getting 5% (but not sure for how long before the interest is reduced). 100K in Maribank and 50K in GSX. Since the interest rates will be going downsouth, i plan to top up my ERS (using cash) by 117.3K (maximum) and my spouse ERS (using cash) to max (her current SA is 216.2K) in March when she turns 55. I know my SA will soon move to OA and gets only 2.5% but that is the best case for me now.

 

[BBCWatcher]

I have monies in SSB (up to max) and some in Tbills. 150K in OUB one account getting 5% (but not sure for how long before the interest is reduced). 100K in Maribank and 50K in GSX. Since the interest rates will be going downsouth...

Will they? That's a supposition, right?

The 6 month T-bill was yielding 3.00% yesterday. Interest rates on approximately comparable vehicles to OA haven't gone down yet. Also keep in mind you can stuff up to $37,740 per year into CPF (per person), less any compulsory contributions. (You and your spouse will both be above 55 in 2025, so there's definitely some room below the CPF Annual Limit for both of you even with max compulsory contributions. That's because the contribution rate is currently lower for age 55+ workers.) Including this year. It'll all land in your OA if your MA is at the BHS. And you can repay OA you've used for housing (plus accrued interest), if/as applicable.

....But OK, you're certainly free to grab that much more OA at 2.5% p.a. if you wish. It'll probably immediately cost you that $391 of CPF interest as I mentioned, but you can at least collect bank interest on cash until circa January 30.

...i plan to top up my ERS (using cash) by 117.3K (maximum) and my spouse ERS (using cash) to max (her current SA is 216.2K) in March when she turns 55. I know my SA will soon move to OA and gets only 2.5% but that is the best case for me now.

Well, hopefully you're not dragging too much cash along at low single digit interest rates and you've got a good balance with prudent long-term investments. That'll be part of the equation in my household, that some of this money exiting SA will feed into low cost stock and bond index funds.

 

[dgeralds]

Will they? That's a supposition, right?

The 6 month T-bill was yielding 3.00% yesterday. Interest rates on approximately comparable vehicles to OA haven't gone down yet. Also keep in mind you can stuff up to $37,740 per year into CPF (per person), less any compulsory contributions. (You and your spouse will both be above 55 in 2025, so there's definitely some room below the CPF Annual Limit for both of you even with max compulsory contributions. That's because the contribution rate is currently lower for age 55+ workers.) Including this year. It'll all land in your OA if your MA is at the BHS. And you can repay OA you've used for housing (plus accrued interest), if/as applicable.

....But OK, you're certainly free to grab that much more OA at 2.5% p.a. if you wish. It'll probably immediately cost you that $391 of CPF interest as I mentioned, but you can at least collect bank interest on cash until circa January 30.

Well, hopefully you're not dragging too much cash along at low single digit interest rates and you've got a good balance with prudent long-term investments. That'll be part of the equation in my household, that some of this money exiting SA will feed into low cost stock and bond index funds.

Thank you. I will think again what is best. Yes I topped up my cpf (3 accounts) the difference from my salary cpf and $37,740 cpf limits in dec 2024. Should have done the same to my spouse as she is home maker for a long time and had income of less than 9K in 2024.

 

[dgeralds]

Will they? That's a supposition, right?

The 6 month T-bill was yielding 3.00% yesterday. Interest rates on approximately comparable vehicles to OA haven't gone down yet. Also keep in mind you can stuff up to $37,740 per year into CPF (per person), less any compulsory contributions. (You and your spouse will both be above 55 in 2025, so there's definitely some room below the CPF Annual Limit for both of you even with max compulsory contributions. That's because the contribution rate is currently lower for age 55+ workers.) Including this year. It'll all land in your OA if your MA is at the BHS. And you can repay OA you've used for housing (plus accrued interest), if/as applicable.

....But OK, you're certainly free to grab that much more OA at 2.5% p.a. if you wish. It'll probably immediately cost you that $391 of CPF interest as I mentioned, but you can at least collect bank interest on cash until circa January 30.

Well, hopefully you're not dragging too much cash along at low single digit interest rates and you've got a good balance with prudent long-term investments. That'll be part of the equation in my household, that some of this money exiting SA will feed into low cost stock and bond index funds.

Hi BBCWatcher

After giving careful thoughts I just transferred my SA to RA (max 117.3K). If the outside bank / T bill rates go below CPF OA rates, I will repay (cash) to OA as my Principal amount withdrawn and accrued interest for property is $300K.

Thank you once again for taking time to educate me. I appreciate your help.

 

[BBCWatcher]

…I appreciate your help.

Thanks! Good luck!

 

[PrincessBunny]

Interest is computed monthly, based on the lowest amount in that month.

Not accurate...

Interest is computed based on last month-end balance less withdrawals in this month.

Lowest balance is only true if:
1. withdrawal happens before your employer deposit into your CPF, or
2. employer deposits before withdrawal, BUT less than the withdrawal amount.

 

[JuniorLion]

Not accurate...

Interest is computed based on last month-end balance less withdrawals in this month.

Lowest balance is only true if:
1. withdrawal happens before your employer deposit into your CPF, or
2. employer deposits before withdrawal, BUT less than the withdrawal amount.

https://blog.seedly.sg/cpf-interest-rate-computation/

What you are writing is a convoluted way of saying the **lowest balance of the month**.

 

[PrincessBunny]

What you are writing is a convoluted way of saying the **lowest balance of the month**.

Firstly, Seedly is not CPF and thus might have misinterpreted CPF to begin with.

Search "How is my CPF interest computed and credited into my accounts?" and go to CPF's FAQ section

"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."

It is not the lowest balance for the month, but previous end-of-month's balance - withdrawals this month.
Note: Deposits this month do not qualify for immediate interest for the same month.

For people above 55 who can start withdrawing money, they might assume "lowest balance of the month" as you or Seedly has pointed out and plan their withdrawals after their employer deposit into their CPF, hence achieving a higher "lowest balance of the month". These people will not receive the "extra" interest from CPF they thought they would by delaying their withdrawals.

 

[JuniorLion]

Firstly, Seedly is not CPF and thus might have misinterpreted CPF to begin with.

Search "How is my CPF interest computed and credited into my accounts?" and go to CPF's FAQ section

"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."

It is not the lowest balance for the month, but previous end-of-month's balance - withdrawals this month.
Note: Deposits this month do not qualify for immediate interest for the same month.

For people above 55 who can start withdrawing money, they might assume "lowest balance of the month" as you or Seedly has pointed out and plan their withdrawals after their employer deposit into their CPF, hence achieving a higher "lowest balance of the month". These people will not receive the "extra" interest from CPF they thought they would by delaying their withdrawals.

I stand corrected.

Thanks for highlighting the technicalities.

 

[BBCWatcher]

Transfers can be favorable exceptions, at least for self transfers.