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AK: 2 Questions Answered by the Central Provident Fund Board
By: AK(ASSI)
Articles (41) Profile

The following is contributed by a reader:

I have asked the CPF Board two questions and their response is appended below. I’ve edited the questions and part of the response to mask personal information. Hence, the flow of the reply may not make complete sense, but I trust that the key points of interest are in there. Feel free to reproduce it:

Question 1: How can the extra 1 percent interest earned on Ordinary Account (OA) & Special, Medisave and Retirement Accounts (SMRA) be earned? 

Ans: The extra 1 percent interest per year is currently paid on the first $60,000 of a member’s combined CPF balances.

The priority of the accounts that make up the $60,000 is as follows:

1. Retirement Account (RA), including balances used to pay for the annuity premium under CPF LIFE

2. Ordinary Account (OA), up to $20,000

3. Special Account (SA)

4. Medisave Account (MA)

In general, CPF interest is computed monthly, and will be credited and compounded to your respective accounts yearly.

Any excess of the Full Retirement Sum (FRS) will remain in the OA/SA which the member can apply to withdraw.

There are no restrictions on when a member, age 55 and above, can make the withdrawals throughout the year. Now, they can apply for withdrawal at any time as long as they have the withdrawable monies and the Board will assess their applications.

Question 2: Assuming FRS of $X and Minimum Sum Topping-Up (MSTU) of $(X + Y) including interests. At age 55, can $Y be withdrawn? 

Ans: No, the top-up monies of $Y cannot be withdrawn as these are meant for recipient’s retirement needs. Hence, the member cannot apply to withdraw the top-up monies:

(a) For payment of education, investments, insurance, housing, etc;

(b) By pledging his property in lieu of the Full FRS; and

(c) Via exemption from the Retirement Sum Scheme.

AK is a Singaporean stock market investor and a popular blogger. His blog was created with the intention of educating investors and sharing his investing journey with the target of having a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.

Please click here for more information about this author.


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