CPF related calculation questions

[dork32]

ok you win

it is fine. you dont win all the time. last time maple also whack my ass when i tok rubbish on the cpf extra interest.

 

[henrylbh]

Henrylbh, yeah i read that SA has no caps but the cpf app just somehow doesnt add up the calculation. @shadowrains calculation with the cap comes close so will update here if i do find any "cap" to sa becoz like u, i believe SA has no cap as well. Just dunno how come cannot get close to the cpf app figures. I did try NOT compounding the interest but just a flat interest and i got similar figures to the app (which doesnt make sense)

There is no cap on SA even it's a million, except that top-ups (not contributions) or transfers from other CPF accounts to SA are not allowed in the month that SA meets FRS.

Mandatory and Voluntary Contributions, subject to annual limit, will continue to go into SA with no ceiling, except MA.

If you are trying to calculate the interest on OA, MA and SA, you first need to know that interest is calculated on the lowest balance in the month, accrued monthly (without compounding) and credited into the respective accounts annually.

In any month that MA reaches BHS, the excess will flow to other accounts. At end of year, with interest credited into MA, the excess above BHS will flow into other accounts.

 

[henrylbh]

it is fine. you dont win all the time. last time maple also whack my ass when i tok rubbish on the cpf extra interest.

Even CPF officer don't win all the time

 

[THEMIKOS]

Another question on cpf related. Since SA pays more interest than OA, would it be wiser to transfer all my OA funds into SA to generate more interest?
I do not need the funds to be in my OA to pay for housing as my house is fully paid up.

Will this be a wise or dumb idea? Thank you.

 

[andyhtc]

Another question on cpf related. Since SA pays more interest than OA, would it be wiser to transfer all my OA funds into SA to generate more interest?
I do not need the funds to be in my OA to pay for housing as my house is fully paid up.

Will this be a wise or dumb idea? Thank you.

If you are not planning for any further investment that taps on your OA, transferring from OA to SA up to its limit is the best way to grow your retirement fund fast without losing any sleep.

 

[BBCWatcher]

And you have until the evening of December 31, 2018, to make that OA to SA transfer online using your Singpass in order to qualify for the higher SA interest rate for all of December, 2018.

 

[addict951]

Guys, today contrib. to SA still 来 的 及 ？

Can make it for this year??

 

[THEMIKOS]

Yeah can make it for this year? Its already fri. Need 3 workin days right?

Can make it for this year??

 

[THEMIKOS]

Thabks for the advise. Yes no further investment. Just wanna grow the retirement fund.

If you are not planning for any further investment that taps on your OA, transferring from OA to SA up to its limit is the best way to grow your retirement fund fast without losing any sleep.

 

[THEMIKOS]

Oh ya now that u mentioned, CPF calculates based on lowest funds avail right?
So what happens if (supposing i make the top up in jan), for example,

Dec 18:
Oa : 100k
Sa: 110k


Jan 19:
Oa: 10k
Sa: 200k

Does this mean in jan, the interests are paid based on OA 10k and SA 110k?

And you have until the evening of December 31, 2018, to make that OA to SA transfer online using your Singpass in order to qualify for the higher SA interest rate for all of December, 2018.

 

[addict951]

Yeah can make it for this year? Its already fri. Need 3 workin days right?

On Thurs (27/12), I used the cpf online nets service to throw into my SA. Just nao I checked, I see the money appeared under my SA wif the date 28/12.

Just nao I threw some money into my ma's RA.

Just nao I also transferred 1K from my OA to SA test test.

For all 3 cases, I checked My Requests, the statuses all show "successfully processed".

Critical is my ma's RA that one, hope can make it wif the date 31/12.

 

[elnewbie]

Interest earned for the month is always based on lowest available balance of that month. So topups in December only start earning interest the following month.

And you have until the evening of December 31, 2018, to make that OA to SA transfer online using your Singpass in order to qualify for the higher SA interest rate for all of December, 2018.

 

[kehyi4]

Interest earned for the month is always based on lowest available balance of that month. So topups in December only start earning interest the following month.

Transfer from OA to SA is an exception -

CPF FAQ:
Q - Will my Ordinary Account savings transferred to my Special Account (SA) enjoy the SA interest rate in the month of transfer?
A - Your Ordinary Account savings will start earning the Special Account interest rate in the month of transfer.

 

[THEMIKOS]

Thats great news. Thank u for the info.

Transfer from OA to SA is an exception -

CPF FAQ:
Q - Will my Ordinary Account savings transferred to my Special Account (SA) enjoy the SA interest rate in the month of transfer?
A - Your Ordinary Account savings will start earning the Special Account interest rate in the month of transfer.

 

[THEMIKOS]

Wow thats really almost immediate. Thanks for the info.

On Thurs (27/12), I used the cpf online nets service to throw into my SA. Just nao I checked, I see the money appeared under my SA wif the date 28/12.

Just nao I threw some money into my ma's RA.

Just nao I also transferred 1K from my OA to SA test test.

For all 3 cases, I checked My Requests, the statuses all show "successfully processed".

Critical is my ma's RA that one, hope can make it wif the date 31/12.

 

[addict951]

Ppl, I got another kwestion

Max cpf contribution allowable is $37740 right?

Say my cpf contribution for the entire year is $33740. Then I go throw the max $7K into SA. Meaning my total contribution is $40740 liao. What happens to that extra $3K if applying the cap of $37740? Does it mean no relief for this extra $3K? Does it work like that?

 

[JuniorLion]

Ppl, I got another kwestion

Max cpf contribution allowable is $37740 right?

Say my cpf contribution for the entire year is $33740. Then I go throw the max $7K into SA. Meaning my total contribution is $40740 liao. What happens to that extra $3K if applying the cap of $37740? Does it mean no relief for this extra $3K? Does it work like that?

Topping up your SA alone is known as Retirement Sum Topping Up (RSTU). It is in no way related to your CPF Annual Limit ($37740).

 

[SKenny]

Ppl, I got another kwestion

Max cpf contribution allowable is $37740 right?

Say my cpf contribution for the entire year is $33740. Then I go throw the max $7K into SA. Meaning my total contribution is $40740 liao. What happens to that extra $3K if applying the cap of $37740? Does it mean no relief for this extra $3K? Does it work like that?

The $3k will be refunded to you without any interest.

 

[eightyfour_k]

Ppl, I got another kwestion

Max cpf contribution allowable is $37740 right?

Say my cpf contribution for the entire year is $33740. Then I go throw the max $7K into SA. Meaning my total contribution is $40740 liao. What happens to that extra $3K if applying the cap of $37740? Does it mean no relief for this extra $3K? Does it work like that?

JuniorLion is correct, contribution to SA alone (RSTU) has nothing to do with yearly cap or 37740. If you want, you can top up all the way to FRS (171000) but you will only entitle for 7k tax relief.

For your case, that 3k will stay in SA

 

[student_sdu]

Another questions, for the refund of the 3k. If I made the vc of 7k in Dec 2018, when will I receive the refund of 3k? In Jan 2019?

And usually u will check the "contribution history" to confirm the amount u can top up (vc) right?

Ppl, I got another kwestion

Max cpf contribution allowable is $37740 right?

Say my cpf contribution for the entire year is $33740. Then I go throw the max $7K into SA. Meaning my total contribution is $40740 liao. What happens to that extra $3K if applying the cap of $37740? Does it mean no relief for this extra $3K? Does it work like that?