- Ordinary Account (OA)
- Special Account (SA) which will become Retirement Account (RA) by the age of 55 years old.
- Medisave Account (MA)
For members below 55, when the Ordinary Account has zero balance, the first $60,000 in the Special Account savings will attract 5 per cent while the remaining balance will enjoy 4 per cent interest.
TOPPING UP YOUR CHILDREN’S CPF ACCOUNT
Each Singaporean newborn has a CPF account set up by the Government as they were given $4000 Medisave Grant. With compound interest being powerful, by topping up into the child’s special account will allow the sum to compound over up to 55 years. I was reading online, there are some rich family who top up straight $161,000 (Maximum for the FRS as of 2017) into their newborn a/c and with compound interest of projected 5% per year, these could easily compound to some $1.5 million over the next 55 years.
Alternatively, to top up your children’s CPF account is to use the Voluntary Contribution scheme which is currently capped at $37,740 per year. Contributions will be split between the Ordinary, Special and Medisave accounts.
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We felt that positive about building up excess money in the SA and will be treating the contribution as though it is a form of Fixed deposit. Just a mere sum of $200 per month over 10 years will allow the amount paid for to compound to over $250k at 55 years. That is about 10x growth in the initial contribution amount. Off we go and started the first round contribution of $2.4k via IBANK to his CPF account.
To submit the topping-up application via our online services, please:
1) Log in to my cpf Online Services with your SingPass.
2) Select “My Requests” on the left-hand navigation menu.
3) Select “Building Up My/My Recipient’s CPF Savings (eg. Transfer OA to SA savings, Topping up to my RA, CPF Minimum Sum Topping-Up Scheme, etc)”.
4) To make a cash top-up, click on this option on the screen and follow the instructions to submit the topping-up application.