Personal Finance
CPF Account Effective Interest Rates
By Investment Stab  •  May 25, 2020
Is it always good to have a lot of money in your CPF? Maybe, maybe not! As the amount of money in your CPF account increases, the amount of interest you get from CPF increases. However, the effective interest rates you are getting from CPF also decreases. What is Effective Interest Rates? Effective Interest Rates (EIR) is the total interest you are paid on the total amount of money you have. Eg: Total CPF Interest for the year divided by your total CPF balance (express in percentage). For money in your Special, Medisave & Retirement Account (SMRA), a) each account will earn a 4% interest on its money b) first $60,000 will earn an extra 1% interest c) those age 55 & above will earn an extra 1% interest on the first $30,000 Below is how the interest curve will look like Before age 55 The first $60,000 in your CPF will earn an interest of...
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By Investment Stab
We are a group of Singaporean students who are curious and interested in Finance. As we dive deeper into this area in search of more knowledge, the more debates and differences we have. We also realised that financial literacy is not strongly inculcated in the younger generations, leading to numerous costly mistakes. Some of such includes believing in "high profiting" scams such as land banking and buying unnecessary investment schemes which are often motivated by the salesperson's personal interest ...
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