CPF Interest - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




CPF Interest

Reply
 
Thread Tools
  #1 (permalink)  
Old 03-08-2007, 02:01 PM
Salary.sg
Guest
 
Posts: n/a
Default CPF Interest

We all know that we earn 2.5% interest for our CPF ordinary account and 4% for the special and medisave accounts.

While flipping through the MAS Annual Report 2006/2007, I noted that in 2006, the interest credited to CPF members' balances is a total of $3,926.8 million (yes, that's close to $4 billion). This figure is also available from the CPF Annual Report.

Let's assume that the interest is calculated purely based on the previous year's balances (i.e. 2005), which is $111,873.8 million (yes, this is almost $112 billion). This means CPF paid out an effective interest rate of 3.28%.

In fact, for the 5 consecutive years from 2002 to 2006 inclusive, I calculated that the average effective interest rate is 3.24%.

This is a nice number! It's very close to 3.25%, which is the average of 2.5% and 4% - the interest rates of ordinary and special/medisave.

Does this mean that the average CPF member has almost an equal balance amount in his ordinary account as there is in his special & medisave accounts combined?

Nonetheless, you might be interested in calculating the effective interest rate you will get from CPF. Just enter your ordinary, special and medisave balances here:



http://www.salary.sg/2007/cpf-interest/

Reply With Quote
  #2 (permalink)  
Old 12-08-2007, 06:20 PM
Thought Provoker---
Guest
 
Posts: n/a
Default 341

Interesting analysis of the figures. Although the CPF balance is largely tipped towards the Ordinary A/C as opposed to the Special/Medisave A/Cs in terms of proportion, it would be pertinent to note that the monies in the Ordinary A/C would often be invested in property and thus have a low balance frequently on average. On the other hand, the Medisave and Special A/Cs would normally have the balance 'untouched' for much of the duration in the A/C holder's life and thus generate a higher capital volume for interest to be earned.

Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
New CPF Interest Rates (update) Salary.sg Investments and Net Worth 0 25-09-2007 01:14 PM
New CPF Interest Rates Salary.sg Investments and Net Worth 0 23-08-2007 08:31 PM

» 30 Recent Threads
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
15,915 Replies, 5,087,938 Views
MAS for Mid Career Professionals ( 1 2 3... Last Page)
1,995 Replies, 1,081,609 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
1,812 Replies, 1,440,514 Views
DSTA (under Mindef) ( 1 2 3... Last Page)
1,503 Replies, 1,399,525 Views
ST Electronics ( 1 2 3... Last Page)
3,808 Replies, 1,573,174 Views
GovTech ( 1 2 3... Last Page)
5,663 Replies, 2,276,115 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
5,892 Replies, 4,716,912 Views
Career as Teacher ( 1 2 3... Last Page)
11,166 Replies, 6,827,109 Views
Compare civil service salary ( 1 2 3... Last Page)
16,425 Replies, 12,579,746 Views
Roles in accenture singapore ( 1 2 3... Last Page)
7,628 Replies, 2,378,878 Views
Lawyer Salary ( 1 2 3... Last Page)
21,130 Replies, 10,448,707 Views
DBS ACE Programme ( 1 2 3... Last Page)
163 Replies, 82,596 Views
HTX (Home Team Science and... ( 1 2 3... Last Page)
814 Replies, 385,051 Views
Maritime and Port Authority of... ( 1 2)
19 Replies, 19,723 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
6,146 Replies, 3,790,757 Views
Shopee fresh grad pay ( 1 2 3... Last Page)
1,057 Replies, 450,578 Views
ITE (lecturer) ( 1 2 3... Last Page)
279 Replies, 392,215 Views
How is life as a doctor in... ( 1 2 3... Last Page)
7,339 Replies, 3,455,459 Views
NCS (SingTel subsidiary) ( 1 2 3... Last Page)
1,344 Replies, 1,162,160 Views
LTA (Land Transport Authority) ( 1 2 3... Last Page)
736 Replies, 411,221 Views
Any Ministry or Statboard still... ( 1 2)
12 Replies, 12,329 Views
Work culture in CPF board ( 1 2 3... Last Page)
34 Replies, 77,659 Views
Work culture in IHiS ( 1 2 3... Last Page)
722 Replies, 552,584 Views
Private Banking Salaries ( 1 2 3... Last Page)
83 Replies, 138,753 Views
NUS (National University of... ( 1 2 3... Last Page)
322 Replies, 326,477 Views
Hospital (Private or Public)... ( 1 2 3... Last Page)
761 Replies, 422,784 Views
Ex-MOE Teachers ( 1 2 3... Last Page)
415 Replies, 500,273 Views
IMDA (under MCI) ( 1 2 3... Last Page)
1,280 Replies, 635,058 Views
NCS Tech Graduate Programme or...
4 Replies, 536 Views
Work in SMU ( 1 2)
12 Replies, 4,928 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 06:47 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2