CPF Easy Info Thread. :)

[jywy2005]

For refund of CPF money that has been withdrawn for housing, when is the best time to do a full refund? Beginning of the month or end of month?

Is it possible to repay the loan amount used and leave the accrued interest unpaid? TIA

 

[terence2112]

For refund of CPF money that has been withdrawn for housing, when is the best time to do a full refund? Beginning of the month or end of month?

Is it possible to repay the loan amount used and leave the accrued interest unpaid? TIA

Doesn’t matter when, as the interest is calculated based on the lowest balance of the moment. The best time to do is in January.

For the repayment of cpf used for housing, you can return up to the principal sum or principal sum + accrued interest.
So yes to your question.

 

[BBCWatcher]

For refund of CPF money that has been withdrawn for housing, when is the best time to do a full refund? Beginning of the month or end of month?

The best time is almost never.

If you're flat out of other ways to inject dollars into your and your family's CPF accounts (and there's a long list, all higher yielding), then the best time is the end of the month as long as the CPF Board credits the funds within the same month. That's because the dollars that you're using are presumably earning at least a little interest outside, and you want that interest to last as long as possible within that month.

Is it possible to repay the loan amount used and leave the accrued interest unpaid?

Sure. You can repay S$1 if you want. Any amount up to the amount withdrawn plus the CPF Board's calculation of accrued interest (which is a bit complicated).

Doesn’t matter when, as the interest is calculated based on the lowest balance of the moment.

It doesn't matter inside CPF, but outside it does. (See above.)

The best time to do is in January.

No, there's no "best month" for OA repayments. There's no tax relief associated with them, so January (the new tax year) is irrelevant for these purposes.

 

[Aion99]

Anyone know if OA is zero, SA is 60k, MA is 20k
Since first 60k got extra 1%,will I get 5% for the 60k in SA?

 

[decibel.]

Anyone know if OA is zero, SA is 60k, MA is 20k
Since first 60k got extra 1%,will I get 5% for the 60k in SA?

It's for all combined I thought. So yes to the 1% of the 60K in your SA.

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[reddevil0728]

Anyone know if OA is zero, SA is 60k, MA is 20k
Since first 60k got extra 1%,will I get 5% for the 60k in SA?

Q How much extra interest can I earn on my CPF balances?
A
To enhance the retirement savings of Singaporeans, the Government pays extra interest on the first $60,000 of your combined balances (capped at $20,000 for Ordinary Account (OA)). The amount of extra interest paid to you would depend on your CPF balances and age.

https://www.cpf.gov.sg/members/FAQ/schemes/other-matters/others/FAQDetails?category=Other+Matters&group=Others&ajfaqid=2192040&folderid=13726

 

[edwinttt1978]

Anyone know if OA is zero, SA is 60k, MA is 20k
Since first 60k got extra 1%,will I get 5% for the 60k in SA?

The 60k in SA will get 5% according to the sequence making up the combined balances.

Q How much extra interest can I earn on my CPF balances?
A ...
The amount of extra interest paid to you would depend on your CPF balances and age.
The sequence for the account balances used to make up the combined balances is as follows:

1st: Retirement Account (RA), including balances used to pay for the annuity premium under CPF LIFE
2nd : OA, with a cap of $20,000
3rd : Special Account (SA)
4th: MediSave Account (MA)

https://www.cpf.gov.sg/members/FAQ/...s&group=Others&folderid=13726&ajfaqid=2192040

 

[Tormented Soul]

Noob question here. I always read full retirement sum, actually what's the max you can ever top up to your RA? I try to find info in cpf website but they very vague, on one hand you can compute any amount into their calculator, on the other hand they say FRS is 271k.

 

[crimsontactics]

Noob question here. I always read full retirement sum, actually what's the max you can ever top up to your RA? I try to find info in cpf website but they very vague, on one hand you can compute any amount into their calculator, on the other hand they say FRS is 271k.

ERS. I think 270k around there.

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[oceanicmanta]

Best to VC at the later part of the month. But not on last day as they need 1 working day to process.

I recommend at least 3 working days before month ends.

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What about proceeds from liquidating CPF Investment ?

Would the sale proceeds similarly only start earning CPF interest from the next month ?

 

[crimsontactics]

What about proceeds from liquidating CPF Investment ?

Would the sale proceeds similarly only start earning CPF interest from the next month ?

Yes...

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[BBCWatcher]

I always read full retirement sum, actually what's the max you can ever top up to your RA?

You can top up a Retirement Account to whatever the current Enhanced Retirement Sum is. The ERS is ordinarily increased every January 1st.

For these purposes only RA principal is counted against the ERS limit, not any interest. So per current rules you can top up your RA (or anyone else's) every time the ERS is raised to the new ERS -- for your or your recipient's entire life if you wish.

 

[crimsontactics]

Very worried that CPF interest rate will be reduced in the future...

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[Kaypohji]

So cash top up to SA is better to be done in January right?

 

[crimsontactics]

So cash top up to SA is better to be done in January right?

No. Best done at the end of any month that you are in.

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[reddevil0728]

Very worried that CPF interest rate will be reduced in the future...

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Interest Rate for Ordinary Account

The interest rate on Ordinary Account (OA) monies is reviewed quarterly. OA monies earn either the legislated minimum interest of 2.5% per annum, or the 3-month average of major local banks' interest rates, whichever is higher.

The OA interest rate will be maintained at 2.5% per annum from 1 July 2020 to 30 September 2020, as the computed rate of 0.64% is lower than the legislated minimum interest rate.

https://www.cpf.gov.sg/Members/AboutUs/about-us-info/cpf-interest-rates

Apparently 2.5% is legislated for OA.

For the other accounts, the interest rate should maintain at least till end of the year.

 

[crimsontactics]

Interest Rate for Ordinary Account

The interest rate on Ordinary Account (OA) monies is reviewed quarterly. OA monies earn either the legislated minimum interest of 2.5% per annum, or the 3-month average of major local banks' interest rates, whichever is higher.

The OA interest rate will be maintained at 2.5% per annum from 1 July 2020 to 30 September 2020, as the computed rate of 0.64% is lower than the legislated minimum interest rate.

https://www.cpf.gov.sg/Members/AboutUs/about-us-info/cpf-interest-rates

Apparently 2.5% is legislated for OA.

For the other accounts, the interest rate should maintain at least till end of the year.

Yeap. Worried over the rates for SA and MA...

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[BBCWatcher]

So cash top up to SA is better to be done in January right?

No. Best done at the end of any month that you are in.

Then every January thereafter (when you have a reasonable expectation of qualifying for tax relief). Unless you're trying to beat a payroll cycle contribution (because your SA is "too close" to the Full Retirement Sum), PayNow QR on January 30th is a good idea.

 

[reddevil0728]

Then every January thereafter (when you have a reasonable expectation of qualifying for tax relief). Unless you're trying to beat a payroll cycle contribution (because your SA is "too close" to the Full Retirement Sum), PayNow QR on January 30th is a good idea.

Pardon for my ignorance, but the reason for doing a VC to cpf on the last possible day of jan is because it’s a fresh year where you can qualify for tax relief and also because cpf interest only starts to accuse in the month following the top up hence the last possible day in jan is the best time?

 

[pcmdan]

Pardon for my ignorance, but the reason for doing a VC to cpf on the last possible day of jan is because it’s a fresh year where you can qualify for tax relief and also because cpf interest only starts to accuse in the month following the top up hence the last possible day in jan is the best time?

That's correct