Central Provident Fund
From Financial Literacy Wiki
The Central Provident Fund (CPF) is a comprehensive social security savings plan which has provided many working Singaporeans with a sense of security and confidence in their old age. The overall scope and benefits of the CPF encompass the following:
- Retirement
- Healthcare
- Home Ownership
- Family Protection
- Asset Enhancement
Working Singaporeans and their employers make monthly contributions to the CPF and these contributions go into three accounts:
Ordinary Account - the savings can be used to buy a home, pay for CPF insurance, investment and education.
Special Account - for old age, contingency purposes and investment in retirement-related financial products.
Medisave Account - the savings can be used for hospitalisation expenses and approved medical insurance.
Your CPF savings earns interest. Savings in the Ordinary Account earns a minimum interest rate of 2.5% per annum, while savings in the Special and Medisave Accounts earn additional interest of 1.5 percentage points above the prevailing Ordinary Account interest rate, a total of 4%.
