CPF Accrued interest question

[henrylbh]

Thanks. The repayment will go into OA even after 55? Or RA instead?

Whether before or after 55, the repayment (or sale proceeds) will go into OA first.

If you are 55 and above, within 5 working days, savings in OA will be transferred to RA, if you did not meet FRS at 55..

How much to transfer to RA depends at the time when you turned 55.

 

[henrylbh]

Yes.

BTW, I think I realised my mistake. I meant HPS. Not mortgage loan.

Doesn't matter HPS or not. The doubt is 'in excess of the remaining loan, the balance would be transferred to CPF'.

 

[Chromesthlesia]

Thanks. The repayment will go into OA even after 55? Or RA instead?

Yes, similarly to what other people have mentioned as well. What has been taken out has to be returned back.

Scenario:

Principal amount and accrued interest used: $100k

Before 55, the $100k goes back to Ordinary Account.

OA: $120k

OA: $20k
RA: $100k

*Shortfall: $71k

*Based on current Full Retirement Sum Scheme of 2018 $171,000

After 55: priority - RA, subsequently OA.

$100k
-> $71k (RA)
-> $29k (OA/$)

 

[henrylbh]

Yes, similarly to what other people have mentioned as well. What has been taken out has to be returned back.

Scenario:

Principal amount and accrued interest used: $100k

Before 55, the $100k goes back to Ordinary Account.

OA: $120k

OA: $20k
RA: $100k

*Shortfall: $71k

*Based on current Full Retirement Sum Scheme of 2018 $171,000

After 55: priority - RA, subsequently OA.

$100k
-> $71k (RA)
-> $29k (OA/$)

Right only for later cohort. Earlier ones are allowed to keep a percentage of OA even if they did not meet retirement sum applicable to them.

 

[Prof. Utonium]

Doesn't matter HPS or not. The doubt is 'in excess of the remaining loan, the balance would be transferred to CPF'.

Hmm... What I encountered recently was transferred to CPF then to PTO due to lack of nominations.$1k+

 

[The_Davis]

Yes.


You are still alive so you have to repay the accrued interest. But I believe the SERS compensation should be enough to cover it hence you should not need to fork out cash payment out of your pocket.


It is explained at HDB website. In fact, questions you are looking for here are covered in various government websites.

sers compensation how much??

If your accrued interest is to the tune of $x00k how?

 

[leoch037]

sers compensation how much??

If your accrued interest is to the tune of $x00k how?

Myth 2: When I use my CPF money to pay for my HDB flat, I have to pay CPF Board (CPFB) back the accrued interest if I ever sell my HDB flat. Essentially, I am paying “extra interest” for nothing.

Many Singaporeans know that we can use our own CPF monies ( which is our savings) to pay for a HDB flat as this can serve as another form of asset for retirement needs.

However, when we use CPF monies to buy a home, we are borrowing money from our own nest egg, which is meant for other retirement needs as well.

Hence, it is only right that if we were to sell our home, we should return what we have borrowed (i.e. the principal amount) plus the interest we would have earned had the money not been taken out from our CPF account (accrued interest). This amount is returned to our own CPF accounts for our future retirement needs.

Accrued interest needs to be refunded to our CPF accounts upon the sale of our home as long as the sales proceeds is sufficient to pay back the principal and interest.

https://www.gov.sg/factually/content/top-4-cpf-myths-debunked

 

[Prof. Utonium]

sers compensation how much??
----------
If your accrued interest is to the tune of $x00k how?

I don't know leh



---------

Balance compensation as in cash profit.

However, if your accrued interest is higher than profit, you still won't need to repay in cash. Parliament might get burnt down.

 

[Chromesthlesia]

Right only for later cohort. Earlier ones are allowed to keep a percentage of OA even if they did not meet retirement sum applicable to them.

Hmms. You meant before the policy was reversed?

Frankly, that was a very confusing time. They should just have made it really straightforward and logical in the first place.

 

[The_Davis]

I don't know leh



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Balance compensation as in cash profit.

However, if your accrued interest is higher than profit, you still won't need to repay in cash. Parliament might get burnt down.

So meaning can end up you owe yourself money aka need to top up money to CPF?