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 CPFSA Via RSTU (Retirement sum topping-up scheme)
Usually the RSTU scheme is tapped to save for your own retirement and get relief of up to $8,000. It is possible to do RSTU for your child also (BUT NOTE NO TAX RELIEF TO YOU IN THIS INSTANCE!). Interest earned to your child's CPFSA would likely be 5%p.a.* (factoring 1% extra)
*Do note that the extra interest applies only if total accounts are less that $60,000 More crucially, CPFSA is only for his/her retirement! In addition, RSTU amounts will
...*Do note that the extra interest applies only if total accounts are less that $60,000 More crucially, CPFSA is only for his/her retirement! In addition, RSTU amounts will
