How can I reduce my accrued interest in CPF OA?

I’ve used some of my CPF OA to close the mortgage loan. As such, my utilised CPF OA amount is accruing interest. Is there a way I can reduce the accrued interest by topping up CPF OA? Or should I let it accrue till I sell my HDB unit and any cash flow that I’ve now to be invested in different instruments that may return more than the accruing interest?

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Just_Saying

12 Oct 2020

Why is there a need to compare investment returns (from cash) to the accrued interest? Ultimately accrued interest on your OA is simply your own money having to deposit back into your OA account upon sale of flat.

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Elijah Lee

11 Oct 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Yes, you may refund the accrued interest to reduce it. You can refund any amount, capped at the full principal amount you have withdrawn for the property with the accrued interest. Please refer to the steps here:

https://www.cpf.gov.sg/members/FAQ/schemes/hous...

If you let it accrue, you run the risk that the compounding effect will be far more than the gains from your investments; remember that investments are non-guaranteed whereas compound interest is going to happen whether you like it or not.

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Lee John

11 Oct 2020

dont sell the house
pay mortgage by cash...

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