Since July 1998, CPF members were allowed to transfer savings from the Ordinary Account (OA) and/or cash to the Special Account (SA). However, the amount in the Special Account cannot exceed the prevailing CPF Minimum Sum after the transfer.
You are eligible to do so if you are below 55 yrs old and your Special Account is less than the prevailing Minimum Sum, currently set at $99,600.
In doing so, you could enjoy the higher interest rate in the SA. With effect from 2008, the balances in the SA will be pegged to the yield of the 10-year Singapore Government Security (10YSGS) plus 1%. To help members adjust to this floating rate, the SA interest rate will be maintained at a floor of 4% for 2008 and 2009.
It will be suitable if
1) You have no intention to get a property or you have reserved enough money for your current mortgage repayment
2) Your investment risk profiling is of very low risk and you have no intention to invest your CPF monies
3) You have reserved enough money for your children education and will not be using the CPF.
Do note that the transfer is not reversible. You may transfer your funds online using your Singpass or download the form the CPF website: http://mycpf.cpf.gov.sg
Before you do anything, talk to your Financial Planner with about this.
Wednesday, February 6, 2008
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1 comment:
Thank goodness, you have honest Adreain. If you get another NTUC agent that CPF part that you can transfer to SA to get 5% will not be told to you.If you do know the agent will give you hundreds of reasons why you should not transfer. You see the greed can turn man or woman into a wicked and conscienceless evil
doer.
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