CPF SA

[dappermen]

some ideas but irreversible!

 

[dgeralds]

Post 55 years old, how can one withdraw the SA interest and OA interests (without touching SA and OA) on a yearly basis? How do we know how much is the interest?

Hi All. I understand that the above cannot be done anymore (i.e withdraw ONLY interests above 55 years old) . Please confirm. Thank you.

 

[royalmix]

Hi All. I understand that the above cannot be done anymore (i.e withdraw ONLY interests above 55 years old) . Please confirm. Thank you.

CPF is not transparent. It has never stated in their website the previous withdrawal rules, so this year when they decided to change, they also kept quiet until some people query. Withdrawal first to wipe out SA then OA is the new rule. U can search thru other threads to find the discusssion or write in if u still dun believe.

 

[a4973]

i believe when SA & OA interests were able to be withdrawn previously it was not an intentional offering by CPF rather it was due to the way interests was "handled" ie accrued monthly compounded annually so each month when interests were accrued the interests were kept in a sort of "holding account" and when there is a withdrawal request then the drawdown will come from accrued SA interest then accrued OA interest because probably it is easier processwise to drawdown from funds in the "holding account".
it is very easy to test. just do a above 55 withdrawal via Paynow of say $10 and you should be able to then check your SA and see $10 being deducted from SA principal.

 

[vsvs24]

Hi All. I understand that the above cannot be done anymore (i.e withdraw ONLY interests above 55 years old) . Please confirm. Thank you.

The withdrawal rule might have changed to remove accrued interest not credited. But you can always withdraw on 1 Jan the interest paid on 31 Dec to SA and OA. This will keep your original SA and OA balance intact.

Edit : My error. Cannot withdraw OA interest as SA must deplete first before OA.

 

[zumaba]

Isn't interset part of principal once credited? Then what is the diff between withdrawal of interest and of principal?

 

[royalmix]

The withdrawal rule might have changed to remove accrued interest not credited. But you can always withdraw on 1 Jan the interest paid on 31 Dec to SA and OA. This will keep your original SA and OA balance intact.

No way to withdraw interest on OA unless u wipe out your SA!

 

[vsvs24]

No way to withdraw interest on OA unless u wipe out your SA!

Oh yes. You are right.

 

[CaptainWu]

Oh yes. You are right.

There is discussion on using OA to buy T-Bills (or other safe investment) then close down the CPFIS account. the T-Bills once expired should then return to your Cash Account, does anyone tried this if that work? This way we can withdraw OA with the amount you needed, just need to arranged in advance for the investment horizon needed.

 

[highsulphur]

There is discussion on using OA to buy T-Bills (or other safe investment) then close down the CPFIS account. the T-Bills once expired should then return to your Cash Account, does anyone tried this if that work? This way we can withdraw OA with the amount you needed, just need to arranged in advance for the investment horizon needed.

Haha this will never happen

 

[CaptainWu]

Haha this will never happen

Why lei? Someone tried before? For shares someone claimed this works but not sure for T-Bills.

 

[highsulphur]

Why lei? Someone tried before? For shares someone claimed this works but not sure for T-Bills.

You mean for people who can already withdraw from OA after 55? CPF is not going to allow such loophole for you to extract funds out of cpf that wouldn't be possible normally

 

[reddevil0728]

You mean for people who can already withdraw from OA after 55? CPF is not going to allow such loophole for you to extract funds out of cpf that wouldn't be possible normally

apparently that's what's possible and share in the t-bill thread leh. came across such post before.

 

[vsvs24]

You mean for people who can already withdraw from OA after 55? CPF is not going to allow such loophole for you to extract funds out of cpf that wouldn't be possible normally

It is a hack like SA shield. Not CPFB's intention but the rules allow it. Only for those above 55 with RA at FRS

 

[highsulphur]

It is a hack like SA shield. Not CPFB's intention but the rules allow it. Only for those above 55 with RA at FRS

That I can understand. You will be allowed to withdraw those funds anyway so it shouldn't be an issue if it flow out from cpfis to cash account

 

[CaptainWu]

That I can understand. You will be allowed to withdraw those funds anyway so it shouldn't be an issue if it flow out from cpfis to cash account

Look like it but just checking if anyone indeed tried this successfully, so far public sharing are conceptual only.

 

[vsvs24]

Look like it but just checking if anyone indeed tried this successfully, so far public sharing are conceptual only.

I am in the midst of it. Will know by year end.

 

[CaptainWu]

I am in the midst of it. Will know by year end.

Please share by the time and hopefully this is success!

 

[royalmix]

Look like it but just checking if anyone indeed tried this successfully, so far public sharing are conceptual only.

It was stated in CPF website (old), I never read the new.

 

[highsulphur]

Why would people want to do it? Can't they just withdraw it after it has been returned to CPF?