Your money in Ordinary Account in CPF earns only 2.5% per annum. There is a safe and guaranteed way of earning for the 2.5%. Government T-bills. The latest T-bill closed on Thursday 14 March 2024 has a yield of 3.78%. This is 1.28% more than CPF rate of 2.5%.
Any amount more than $20,000 in Ordinary Account can be invested in Government Securities which T bills come under. A simple example - assuming your account has $70,000. $70K minus $20K equals $50K. To invest, open a CPF investment account with your bank. Go the internet banking and in invest SGS Singapore Government Securities, click. There will be an option to invest in multiple of $1,000. There are options for Cash, SRS or CPF. Click on CPF. There is a choice of competitive or non competitive bid. Non-competitive means you will take whatever the rate is. Competitive is the minimum rate you are interested to invest.
The example of $50K invested will give you $320 more that CPF pay you in 6 months. I used to think this is too much trouble. Had I done it 30 years ago, I will earn $19,200 more assuming everything stay at the same.
While there will be up and down in T bills interest rate, it will definitely be more than 2.5% CPF is paying.
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