Since Medisave returns 4% guaranteed, should I use cash whenever I can, instead of Medisave?

Hi,

I agree with the others in the comments that Medisave money will most likely end up as a legacy and the best option is to utilise it whenever you can. However, though, it's worthwhile to note that if you manage to hit the maximum amount for Medisave which is $60,000 this year, your CPF contribution will then flow into OA and SA which has much more flexibility.

Regarding the limitation on Medisave, I have a personal story to add. Not long ago I accompanied my father to Sengkang hospital for his brain MRI scan. The bill was about $800 for 2 scans and we were only able to pay half of it via Medisave. ​​​

You should use the MA to pay and later top up MA with cash so you can have top up tax relief (up to limit), in this way you enjoy immediate "saving".

MA is up to BHS limit, anything above it will be flow to SA or OA.

As long as still pay tax or no yet retired this is better way.