CPF top up question

[OngHuatHuat]

If I top up on 1st January, will the top up be counted towards January interest? Since cpf interest is computed based on lowest balance of the month?

 

[badsector]

jan interest earn base on 31 dec balance

 

[BBCWatcher]

If I top up on 1st January, will the top up be counted towards January interest? Since cpf interest is computed based on lowest balance of the month?

jan interest earn base on 31 dec balance

I agree with Badsector.

The only reason I can think of to top up so early in the month of January is if you're trying to squeeze a top up within a new, higher limit -- various CPF limits are raised on January 1 -- and to beat your payroll cycle's contribution. For example, the Basic Healthcare Sum will be raised to $60,000 on January 1, 2020. If your MA is currently pegged at the 2019 BHS ($57,200), and if payroll contributions are streaming in monthly (usually credited on the 5th of the month for example), you might try to squeeze in a $2,800 MediSave top up as soon as online services open back up on January 1. You'll also need high confidence that you'll have enough room below the CPF Annual Limit in 2020 to squeeze in this MediSave top up, because otherwise your top up will be returned to you over a year later and without interest.

If you're not trying to beat some payroll cycle contribution, then you're much better off maintaining your funds in whatever interest bearing account they currently occupy, then make your top up a few business days before the end of the month. Otherwise you're just going to be losing some bank interest making your top up too early, and that's not sensible.

 

[Bombermankid]

I agree with Badsector.

The only reason I can think of to top up so early in the month of January is if you're trying to squeeze a top up within a new, higher limit -- various CPF limits are raised on January 1 -- and to beat your payroll cycle's contribution. For example, the Basic Healthcare Sum will be raised to $60,000 on January 1, 2020. If your MA is currently pegged at the 2019 BHS ($57,200), and if payroll contributions are streaming in monthly (usually credited on the 5th of the month for example), you might try to squeeze in a $2,800 MediSave top up as soon as online services open back up on January 1. You'll also need high confidence that you'll have enough room below the CPF Annual Limit in 2020 to squeeze in this MediSave top up, because otherwise your top up will be returned to you over a year later and without interest.

If you're not trying to beat some payroll cycle contribution, then you're much better off maintaining your funds in whatever interest bearing account they currently occupy, then make your top up a few business days before the end of the month. Otherwise you're just going to be losing some bank interest making your top up too early, and that's not sensible.

A simple answer will suffice for a simple question.

Not a long essay which does not even answer the question.

 

[Okenba]

A simple answer will suffice for a simple question.

Not a long essay which does not even answer the question.

Actually, I find it useful to hear the thinking behind the answer instead of just being a mindless zombie listening to people on a public forum tell me what to do. I also find it interesting to hear people expound on why something may or may not be a good idea and then use my own brain to come to my own conclusion.

Your own milage may vary.

 

[articland05]

I agree with Badsector.

The only reason I can think of to top up so early in the month of January is if you're trying to squeeze a top up within a new, higher limit -- various CPF limits are raised on January 1 -- and to beat your payroll cycle's contribution. For example, the Basic Healthcare Sum will be raised to $60,000 on January 1, 2020. If your MA is currently pegged at the 2019 BHS ($57,200), and if payroll contributions are streaming in monthly (usually credited on the 5th of the month for example), you might try to squeeze in a $2,800 MediSave top up as soon as online services open back up on January 1. You'll also need high confidence that you'll have enough room below the CPF Annual Limit in 2020 to squeeze in this MediSave top up, because otherwise your top up will be returned to you over a year later and without interest.

If you're not trying to beat some payroll cycle contribution, then you're much better off maintaining your funds in whatever interest bearing account they currently occupy, then make your top up a few business days before the end of the month. Otherwise you're just going to be losing some bank interest making your top up too early, and that's not sensible.

but I read on AK71 site there is some benefit in topping up the 7k to SA in early Jan so the 4% interest will get extra boost...

Sent from LGE LG-H990 using GAGT

 

[OngHuatHuat]

I max out tax relief for voluntary contributions this year, so have to wait till next year Jan to top up. Hopeful able to get extra one month interest based on top up amount.

I agree with Badsector.

The only reason I can think of to top up so early in the month of January is if you're trying to squeeze a top up within a new, higher limit -- various CPF limits are raised on January 1 -- and to beat your payroll cycle's contribution. For example, the Basic Healthcare Sum will be raised to $60,000 on January 1, 2020. If your MA is currently pegged at the 2019 BHS ($57,200), and if payroll contributions are streaming in monthly (usually credited on the 5th of the month for example), you might try to squeeze in a $2,800 MediSave top up as soon as online services open back up on January 1. You'll also need high confidence that you'll have enough room below the CPF Annual Limit in 2020 to squeeze in this MediSave top up, because otherwise your top up will be returned to you over a year later and without interest.

If you're not trying to beat some payroll cycle contribution, then you're much better off maintaining your funds in whatever interest bearing account they currently occupy, then make your top up a few business days before the end of the month. Otherwise you're just going to be losing some bank interest making your top up too early, and that's not sensible.