facebook4% Is an attractive interest rate. But how does CPF earn this interest rates to pay us? - Seedly
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Anonymous

14 Jun 2019

SeedlyTV

4% Is an attractive interest rate. But how does CPF earn this interest rates to pay us?

It was mentioned in SeedlyTV EP06 that the money we put in will earn 4% of interest. Anyone knows how they intend to earn 4% of interest?

SeedlyTV S1E06

1

      Discussion (1)

      What are your thoughts?

      Depends how technical u want the answer to be. =D

      In short, CPF monies are 'invested' by the CPF Board (CPFB) by 'buying' Special Singapore Government Securities that are issued and guaranteed by the Singapore Government.

      Thus the 4% is guanranteed by the full faith of Singapore government. Which in turn effectively by the tax moneies of the nation. =D So indirectly, tax payers subsidise the high interest rates cPF members get.

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