Is it advisable to transfer all the funds from your OA to SA to earn the higher interest rate to grow our CPF funds? Are there any things that I have to be mindful of before doing so? - Seedly
 

PFF Panel 1

Seedly PFF 2019

CPF

CPF SA

Asked by Anonymous

Asked on 02 Mar 2019

Is it advisable to transfer all the funds from your OA to SA to earn the higher interest rate to grow our CPF funds? Are there any things that I have to be mindful of before doing so?

4

Answers (4)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent
Charmaine Ng
Charmaine Ng, The Code Breaker at @ Every Chye Peng Stall
Level 6. Master
Answered on 02 Mar 2019

If you are planning to buy a HDB in near future with your CPF you may want to avoid doing that. Transferring from OA to SA do help you accumulate more interests and as we know these interests roll over time to a good amount.

Also with increasing costs and inflation on yearly basis, interest rolls helps to buffer. I recommend you to do a quick calculation, have enough to support at least the down payment and 3-5years of installments; then transfer the rest to SA. Continue to transfer every JAN to your SA or on monthly basis if you're dilligent.

0 comments

2

It is good to transfer for it to grow. But u will not be able to undo the transfer so be wary of that.

0 comments

0
Takingstock @
Takingstock @
Level 6. Master
Answered on 02 Mar 2019

For property purchases, its also good to leave buffer in CPF OA (if you are paying the loan on cash). This helps cover the loan when you get hit by retrenchment.

0 comments

0
Poon Cheng Song
Poon Cheng Song
Level 3. Wonderkid
Answered on 02 Mar 2019

You can use your CPF OA for property/mortgage payment. The transfer is irreversible. You need to be mindful if you would still want to keep funds in OA for your property purchase or existing mortgage payments.

0 comments

0