Personal Finance
Should we still top up our CPF in an increasing interest rate environment?
By Value Warrior  •  June 21, 2022
Many friends have been asking me if it's still worth it to top up their CPF now considering that the interest rate is expected to rise for the rest of the year. To answer this question, we need to know how is CPF interest rate being determined. The CPF interest rate has remained at 2.5% for Original Account and 4% for Special Account for the longest time that most of us have forgotten that the CPF interest rate is actually not fixed at those percentage. For the OA, the interest rate is computed based on the 3-month average of major local banks' interest rates (subject to the legislated minimum interest of 2.5% per annum). This is being reviewed quarterly. At the last review, that rate is 0.09% for the period from February 2022 to April 2022 and hence the OA interest rate stayed at 2.5%. For the SA,...
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By Value Warrior
A regular working Joe starting out his value investing journey. I started my investment journey late at the age of 34. Looking back i wish i had started earlier so that power of compounding can work its magic. Nevertheless a good time to start investing is always NOW!!! So here i am having started this journey, i planned to reach Financial independence at age 65. Wish me luck.

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