Should I do a partial payment to my HDB loan using OA?

Hi anon,

I would set a $20K OA buffer in order to maximize the 1% additional interest. Investing it is not recommended, I would rather you invest your cash first.

If you can do a partial payment to reduce the interest paid, that does help in the event you wish to sell your flat before 55 and have to pay back the accrued interest, if not, there's not much of a need to do so if you intend to make this your permanent home.

Your CPFIS of $42K, is that via OA or SA? I don't recommend investing SA monies due to SA's high interest.

I wouldn't invest it knowing there's an outstanding liability and I wouldn't transfer to SA either because it's irreversible.

And since the loan interest is always higher than OA interest, I would clear it first. The accrued interest owed isn't actually a bad thing because it can serve as a savings account via an OA refund after 55 onwards.