Question on CPF

[ValueInvestor]

Anyone noticed that the 10 year SGS yield is now 3.7%?

I remember that our special account interest rate is base 4% or 10 year SGS plus 1%

So does that mean we should be getting 4.7% on our SA?

If so i would feel tempted to move my cpf $$ from OA to SA

Any one care to double check my numbers or advise me?

 

[makav31i]

SA is 4%...only the first $60,000 gets an additional 1%...So you get 5% for your SA if it is the first $60,000 in your CPF...If not, you would get 4%...

 

[chuanz]

Need to wait this month press release for Oct-Dec rates?

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

 

[kehyi4]

From CPF - About Us - Interest Rates

"The interest rate on Special and Medisave Account (SMA) monies is adjusted quarterly. SMA monies earn either the current floor interest rate of 4% per annum or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is higher."

12-mth average lah... I think we'll need 1 year of 10YSGS at 3+% to get higher than floor 4% interest

The last computed rate (for Jul-Sep 2015) was 3.27%, meaning the average 10YSGS was 2.27%

 

[lzydata]

Anyone noticed that the 10 year SGS yield is now 3.7%?

This is incorrect.

You can find out what yield or price the benchmark 10-year SGS is trading on any day here:

https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx

Yesterday it closed at 2.77%.

Perhaps TS is reading this from the coming Singapore Savings Bond interest rates schedule.

10th year from issue date: 10
Interest %: 3.7
Average return per year %: 2.63

This means that in the 10th year of holding the SSB you will indeed get 3.7% pa on it, but this rate is there so that the overall average rate over the 10 years is about the same as the 10-year SGS yield, 2.63. That's how stepped up bonds or deposits work.

 

[cscs3]

Need to wait this month press release for Oct-Dec rates?

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

Bank interest I n the raise. So CPF interest will raise to match the market anyway.

 

[ValueInvestor]

thanks all for the feed back

I transferred most of my OA to SA liao for the higher rates

I only keep 20k in OA, as I not using the OA for anything like buying house

 

[oceanicmanta]

thanks all for the feed back

I transferred most of my OA to SA liao for the higher rates

I only keep 20k in OA, as I not using the OA for anything like buying house

looks like a good move ... (assuming no RA yet)
OA 20k earns 2.5% + 1%
SA (up to 40k) earns 4% +1%
SA (beyond 40k) earn 4%

pls correct me if I am wrong ...

also, must Medisave Account be topped up to the min amount first before OA transfer to SA ? or I read somewhere Medisave min amount has been abolished ??

 

[kehyi4]

also, must Medisave Account be topped up to the min amount first before OA transfer to SA ? or I read somewhere Medisave min amount has been abolished ??

No need to top up Medisave. Medisave Minimum Sum has been abolished.

From CPF FAQ:

"However, please note that the MMS will be removed from 1 January 2016. You will no longer be required to top up your MA before withdrawing your CPF monies from your Ordinary Account (OA) and Special Account (SA) after age 55. This will provide more certainty on how much you can withdraw from your OA and SA after age 55. From now to 31 Dec 2015, you have the option not to top up your MA."

 

[edwinttt1978]

thanks all for the feed back

I transferred most of my OA to SA liao for the higher rates

I only keep 20k in OA, as I not using the OA for anything like buying house

Keep up the good work.

The biggest regret 20 years later might be "I wished I had transferred more into SA 20 years ago."

 

[sandwicher]

thanks all for the feed back

I transferred most of my OA to SA liao for the higher rates

I only keep 20k in OA, as I not using the OA for anything like buying house

Personal question, why you not using OA for buying house?

Not buying house or buying house but not using OA? Hehe

 

[ValueInvestor]

Personal question, why you not using OA for buying house?

Not buying house or buying house but not using OA? Hehe

Already have house

 

[peacefulday]

I m doing QA transfer to my spouse's SA monthly

 

[deathman91]

I m doing QA transfer to my spouse's SA monthly

What is QA transfer?

thanks all for the feed back

I transferred most of my OA to SA liao for the higher rates

I only keep 20k in OA, as I not using the OA for anything like buying house

Why not transfer everything to SA since you have no plans to use your OA?

 

[peacefulday]

What is QA transfer?

hehe my bad, is OA

 

[ValueInvestor]

What is QA transfer?



Why not transfer everything to SA since you have no plans to use your OA?

first 20k in OA also got the extra 1 % mah

2.5% + 1% for 3.5% still ok for me

but anything over the first 20k, no bonus... so i prefer put them to SA for 5%.........

another choice is those after 20k, put into STI ETF.... but then i already very heavy in equities... prefer my CPF side to all remain as risk free fixed income


but will slowly think about it... really maybe balance 20k OA put into SA, cause once do liao cannot reverse


risk free 3.5% and 5% long term bonds, where better place than CPF hehehehe

 

[deathman91]

first 20k in OA also got the extra 1 % mah

2.5% + 1% for 3.5% still ok for me

but anything over the first 20k, no bonus... so i prefer put them to SA for 5%.........

another choice is those after 20k, put into STI ETF.... but then i already very heavy in equities... prefer my CPF side to all remain as risk free fixed income


but will slowly think about it... really maybe balance 20k OA put into SA, cause once do liao cannot reverse


risk free 3.5% and 5% long term bonds, where better place than CPF hehehehe

I would have transferred whole OA to SA if I am certain that I have absolute zero usage intention on the OA which I think you are.

But hehe like you said, it's irreversible. So have to weight whether the extra 1.5% or just 0.5% is worthwhile. I believe it's only extra 0.5% more assuming your SA already more than 40k.

 

[ValueInvestor]

I would have transferred whole OA to SA if I am certain that I have absolute zero usage intention on the OA which I think you are.

But hehe like you said, it's irreversible. So have to weight whether the extra 1.5% or just 0.5% is worthwhile. I believe it's only extra 0.5% more assuming your SA already more than 40k.

ya if just for the extra 0.5% really not say very big difference sia

3.5% against 4%

 

[K|muRa^84]

first 20k in OA also got the extra 1 % mah

2.5% + 1% for 3.5% still ok for me

but anything over the first 20k, no bonus... so i prefer put them to SA for 5%.........

another choice is those after 20k, put into STI ETF.... but then i already very heavy in equities... prefer my CPF side to all remain as risk free fixed income


but will slowly think about it... really maybe balance 20k OA put into SA, cause once do liao cannot reverse


risk free 3.5% and 5% long term bonds, where better place than CPF hehehehe

it's quite possible for min sum to hit 300+k when u r 55

 

[havetheveryfun]

it's quite possible for min sum to hit 300+k when u r 55

provided u don't spend too much of it on buying a house