facebookWhat are the benefits or reasons for topping up cash into CPF? - Seedly

Anonymous

18 Apr 2019

Random

What are the benefits or reasons for topping up cash into CPF?

Seems like many people are talking about it. But what exactly are the benefits of doing that?

Discussion (5)

What are your thoughts?

Learn how to style your text

HC Tang

15 Sep 2018

Financial Enthusiast, Budgeting at The Society

  1. Tax rebate - Check out IRAS website and your own tax bill and make it an Excel with one item that is CPF SA a/c top up for yourself, spouse or your parents.
  2. compounding interest that is ”risk free” on SA 4%.

This is good because it's risk free (since by CPF , government ), guaranteed 4%.

I'll use it for the sake of the above 2 reason and mainly #2 so that when retire have enough $ back monthly.

Go CPF website sign up their newsletter, they have roadshow all the time in neighbour centre so you can go ask them more questions and attend their talk to find out more.

Charmaine Ng

14 Sep 2018

The Value Maximizer at @ Every Ma La Xiang Guo Stall

For me I'd be topping cash into the CPF for the compound interest rates to work its magic through the years.

To put it bluntly; look, we're already in the race since we started work and with CPF being used for Housing, education and at a interest rates that is much more higher than our local banks..(let's not forget the bonus 1% for first 20K under OA etc.), it makes sense that we utilize the higher interest rates (with our government no less - who has one of the top credit rating worldwide).

That said, there are always people who says that you could invest in other instruments and get back to 8-15% returns - but those are non-guaranteed and has much higher risk. For every investment there comes a risk but the CPF is one that a lower risk while still giving a decent amount of interest rates without me having to meddle too much with it.

Jeff Yeo

14 Sep 2018

amateur Social contributor at School of social sharing

  1. Tax rebate - up to 14k per year if you do it for yourself + a spouse or your parents
  2. compound...

Write your thoughts