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I was told that if I top up my CPF in the month of December I will collect less interests compared to January. Is that true? Why is that so? Is the interest for the whole year based on the total fund in your account?
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Cryotosensei
31 Jan 2023
Blogger at diaperfinancingfund.blogspot.com
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Elijah Lee
06 Jun 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi Junxiang,
CPF interest is computed monthly. It is then credited to your respective accounts and compounded annually. CPF interest earned in the year will be credited to your CPF accounts by 1 January of the following year.
Thus, if you top up in Dec 2020, your interest on the added monies will be pro-rated for 1 month. If you top up in Jan 2020, your added monies will get interest for the full duration of 2020.
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My best practice is to top up $168.88 to my CPF every January first. For auspicious reasons. Huat ah!