If you didn’t know yet, the basic healthcare sum (BHS) has increased from S$54,500 in 2018 to S$57,200 in 2019. Based on information from the CPF website, monies in the Medisave Account (MA) and Special Account (SA) earns up up to 5% interest rate per annum. Monies in the Ordinary Account (OA) earns up to 3.5% interest per annum.

With the increase in limit for the basic healthcare sum (BHS), we can take the opportunity to top up our Medisave Account (MA) using cash.

There are several benefits of hitting the current limit (S$57,200) of your Medisave Account:

Tax rebates if you use cash to top up your Medisave Account (MA). When you have max out your Medisave Account (MA), your monthly CPF contribution from your salary and employer gets overflown over to your Special Account (SA). The Special Account (SA) earns you a higher interest of 5% per