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What you need to know about placing your CPF savings in a fixed deposit Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Close Close Top Stories Singapore Asia World Commentary Sustainability Business Sport Latest News Discover CNA Insider Watch Live TV News Reports Documentaries & Shows TV Schedule Listen CNA938 Live Podcasts Radio Schedule Special Reports Singapore Parliament Mental Health Interactives Lifestyle Entertainment Women Wellness Living Style & Beauty Dining Travel Luxury Experiences Obsessions People Remarkable Living CNA Eyewitness Send us a news tip Events & Partnerships Branded Content Business Blueprint Health Matters The Asian Traveller Weather Edition: Singapore Asia Search Trending Topics CNA Explains China Malaysia Israel-Hamas war Snap Insight Ukraine invasion Wellness Billion-dollar money laundering case Follow CNA Follow our news Facebook Twitter Youtube LinkedIn RSS
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What you need to know about placing your CPF savings in a fixed deposit With a new fixed deposit offering for CPF funds in the market, CNA explores if it is worthwhile and how it fares against other options.
Singapore dollar notes.(File photo: CNA/Goh Chiew Tong)
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Tang See Kit @SeeKitCNA
Tang See Kit 23 Jan 2024 06:00AM (Updated: 23 Jan 2024 10:52AM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn SINGAPORE: For those hoping to maximise the growth of their Central Provident Fund (CPF), another option has come under the spotlight recently.
Earlier this month, Maybank became the first foreign bank in Singapore to offer fixed deposits for CPF savings.It has set its rate at 2.9 per cent per annum for a minimum placement of S$20,000 (US$15,000) in Ordinary Account funds for 12 months.
OCBC is the only other bank that offers fixed deposits for CPF.Customers who apply online get a per annum rate of 3.1 per cent, while those who do so at an OCBC branch get 2.7 per cent.
However, the bank currently only offers six-month tenures and a higher minimum placement of S$30,000.
Since Ordinary Account funds already earn an annual interest rate of 2.5 per cent , is it worthwhile to place your CPF savings in a fixed deposit? What other investment options are available? CNA finds out.
WHO CAN INVEST AND HOW TO DO SO? Anyone who is at least 18 years old and is not an undischarged bankrupt can invest their CPF savings.
To tap into funds in the Ordinary Account, set aside at least S$20,000 in the account and open a CPF investment account with one of the three local banks – DBS, OCBC or UOB.
Financial advisers say prudence is the key investing principle given how CPF funds account for a sizeable portion of the average Singaporean’s retirement funds.
Decisions should be made based on one’s risk appetite and investment time horizon.
For example, those who are planning to use their CPF Ordinary Account savings to purchase a home within the next five years should avoid risky investments, said PhillipCapital’s investment specialist Aizat Akhtiar.
Another thing to consider is the opportunity cost involved as CPF funds are already earning risk-free guaranteed returns, said Mr Gerald Wong, founder of investment advisory platform Beansprout.
Money Talks: Maximising your CPF – tips for your 40s.
