facebookIs there any difference in interest if i top my CPF SA or RA account with cash? If not, how would u choose whether to top up SA or RA account? - Seedly

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Anonymous

23 Jun 2020

CPF

Is there any difference in interest if i top my CPF SA or RA account with cash? If not, how would u choose whether to top up SA or RA account?

Please advise!

Discussion (2)

What are your thoughts?

Elijah Lee

Elijah Lee

23 Jun 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

This is fixed depending on your age when you top up.

The only way to top up specifically SA/RA is via Retirement Sum Topping Up or RSTU. The money will go to your SA if you are below 55 and have not reached FRS.

If you are above 55 and top up via RSTU, the money will go to your RA instead. You won't be able to top up your SA directly. The only way is to do 3-account voluntary contribution subject to the CPF annual limit.

I'd top up directly to SA for both tax savings and the 4% interest. I'd top up directly to RA if I wanted to increase my CPF Life payouts later in life.

If I'm not wrong, you cant 'choose'.

Its based on your age. If you are younger than age 55, you dont have RA and thus all RSTU will be to SA. Up to FRS. First $7k per year is tax deductible.

If you are older than 55, once your RA is created, all RSTU will go to RA. Not possible to RSTU to SA anymore. However, you can do Voluntary Contributions for all 3 accounts OA SA MA.

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