It’s a common question: “What to do with spare cash” or “What to do with “Hong Bao” or “Green Packet” money given to your child”?
Where would be a good place to park it?
Today I’d be sharing with you the three methods to topping Up To Your Child’s CPF and some insights to it!
Method 1: Topping Up To Your Child’s CPF Via Voluntary Cash Contribution (VC)
You can use the VC to top up. Link to CPF E-cashier here.
Funds deposited will be broken down to CPFOA, CPFSA and Medisave respectively.
The interest given to your child (assuming less than $60,000 and factoring a 1% extra*) would be 3.5%, 5% and 5% respectively.
*Do note that the extra interest applies only if total accounts are less that $60,000 and all extra interest actually goes to CPFSA.
With the allocation amount