The Central Provident Fund (CPF) is a government savings scheme that requires Singaporeans and permanent residents to save 20% of their salary to fund their retirement, healthcare, and housing needs. The CPF pays an interest of 2.5% for savings in the Ordinary Account (OA) and 4% for savings in the Special Account (SA), Medisave Account and Retirement Account. An extra 1% interest is paid on the first $60,000 of your combined balance (including up to $20,000 from your OA).

Most Singaporeans use their CPF to buy their homes but only a few know how to invest your CPF in shares. However, over the last 10 years, less than 20% of those who use their CPF to invest in shares made returns larger than the OA’s guaranteed returns of 2.5% — and 45% made a loss. It seems that leaving your CPF alone is the smarter thing to …