CPF interest for 2016

[dork32]

all are paper rich by few K..

for those that are over 55, cpf is real money.

 

[henrylbh]

there is difference because hdb loan is 2.6% and cpf is 2.5%. if hdb loan is 2.5%, there is totally no difference regards to nett assets

If I remember correctly, HDB loan interest is calculated and compounded monthly based on balance at beginning of the month whereas CPF interest is calculated monthly and compounded annually based on lowest balance in each month.

 

[iamveryguailan]

nb, i tried a cash top up to my account through enets, failed. Called up CPFB, they said they had technical errors on their side. Yet the amount was already deducted from my account. Now have to wait dunno how long for the refund to be processed.

 

[henrylbh]

for those that are over 55, cpf is real money.

Yes, except for RA and interest thereon.

 

[henrylbh]

nb, i tried a cash top up to my account through enets, failed. Called up CPFB, they said they had technical errors on their side. Yet the amount was already deducted from my account. Now have to wait dunno how long for the refund to be processed.

Transaction failed? Or top-up not credited immediately? If the latter, the credit is never instant. It will take a day or two before you can see the credit in your CPF account.

 

[iamveryguailan]

transaction failed. I used DBS at first and the amount wasn't deducted. At first I thought there's some errors on the d2pay, so I switched to Standard Chartered. Also failed, but the amount was deducted already. Now have to wait for refund :x

 

[dork32]

If I remember correctly, HDB loan interest is calculated and compounded monthly based on balance at beginning of the month whereas CPF interest is calculated monthly and compounded annually based on lowest balance in each month.

the difference in compounding is very little as well.

 

[henrylbh]

transaction failed. I used DBS at first and the amount wasn't deducted. At first I thought there's some errors on the d2pay, so I switched to Standard Chartered. Also failed, but the amount was deducted already. Now have to wait for refund :x

Like that must bang table.

 

[henrylbh]

the difference in compounding is very little as well.

Agreed compounding is not much. But not "totally no difference".

 

[homer123]

Hi Henry, can you share your spreadsheet? Thanks

Calculating RA interest is the simplest compare to OA especially, with in and out for those with other outgoings.

I prepared myself a simple excel worksheet to do and project the interest for my father's RA with topping up and payout that I can vary.

For 2016, I calculated the interest to be $3,999.15 while CPF credited him only $3,924.15. I am certain this amount will be finalised in the next few day.

I am still thinking whether to top up his RA to the max in Jan and ask for enhanced payout.

 

[BBCWatcher]

Can we transfer the money from OA back to ma after the limit has increased?

No, but you can transfer OA to SA. The Full Retirement Sum increased to $166,000 (2017), so if your SA is now below that number an OA transfer to SA is possible.

I'm assuming you're under age 55. If age 55 or older then the RA rules apply (the higher ERS limit).

 

[osirisis]

The difference is clear to me.
It's either I owe 2.5% to MY Cpf account or 2.6% to HDB which is lost forever

it hard to say - HDB is also an asset...

 

[orange_sky]

No, but you can transfer OA to SA. The Full Retirement Sum increased to $166,000 (2017), so if your SA is now below that number an OA transfer to SA is possible.

I'm assuming you're under age 55. If age 55 or older then the RA rules apply (the higher ERS limit).

SA above FRS so cannot top up. I don't understand why can't top up MA after the ceiling has increased

Edit : I called cpf. Yes you can top up buy only with cash and it will take into account your annual limit

 

[henrylbh]

Hi Henry, can you share your spreadsheet? Thanks

But it's a simple spreadsheet tailored for own use and it's not useful to others unless there is no other transaction except outflows of fund.

 

[henrylbh]

SA above FRS so cannot top up. I don't understand why can't top up MA after the ceiling has increased

No need to understand. Just accept the rules that SA and MA have ceilings for topping up. Would you believe me if I say that the ceilings are to prevent the rich from benefiting or abusing the system?

 

[BBCWatcher]

Yes, except for RA and interest thereon.

RA funds above the Full Retirement Sum(*) (or above the Basic Retirement Sum with property pledge) are also highly liquid money.

Below the FRS (or BRS) the money is still "real." It's just not liquid since it'll typically be paid out in an annuity and/or bequest. "Typically" because, if you have a suitable substitute that's large enough (a reliable enough pension or annuity, or both), then all RA amounts are highly liquid.

(*) It's slightly more complicated than that because you can always withdraw up to $5000, assuming your RA is at least that big.

 

[peacefulday]

overall interest received near 10k, maxed SA/MA and maintain my OA at 0 by transfer to spouse SA monthly.

2016 overflow interest from SA/MA to OA, immediately transferred done a moment ago too

 

[henrylbh]

overall interest received near 10k, maxed SA/MA and maintain my OA at 0 by transfer to spouse SA monthly.

2016 overflow interest from SA/MA to OA, immediately transferred done a moment ago too

SA can never overflow. Overflow from Ma goes into sa/oa according to age.

 

[OngHuatHuat]

Cpf life payout:

2016:

2017:

 

[henrylbh]

Below the FRS (or BRS) the money is still "real." It's just not liquid since it'll typically be paid out in an annuity and/or bequest. "Typically" because, if you have a suitable substitute that's large enough (a reliable enough pension or annuity, or both), then all RA amounts are highly liquid.

Can also migrate without substitute.