How To Invest Your CPF Savings

Did you know that you can invest with your CPF savings? Instead of earning a mere 2.5% annual interest on your savings, you can tap on the Central Provident Fund Investment Scheme (CPFIS) to get better returns.

What is the CPFIS?

​The CPFIS is an investment scheme that allows CPF members to invest money inside their Ordinary Account (OA) and Special Account (SA) in various financial instruments including fixed deposits, unit trusts, insurance products, bonds, and shares.

Who is eligible for the CPFIS?

Those who can invest under the CPFIS must meet the following criteria:

  • Be at least 18 years old
  • Not an undischarged bankrupt
  • Have over S$20,000 in your OA
  • Have over S$40,000 in your SA

The minimum sum requirement in your OA and SA is to ensure that you have enough money in your CPF in the event that your CPFIS investments fare poorly.

If you meet these requirements, you will also have to complete a mandatory self-awareness questionnaire.

What you need to know before investing through the CPFIS

How do I know how much I have in my CPF account?

To find out how much you have in your CPF account, you can simply:

  • Log in to the CPF website, or access the CPF e-Services via your SingPass app. Go to ‘mycpf Online Services’, then select ‘My Statement’
  • Alternatively, head down to your preferred CPF Service Centre with your identity card

How much can I invest?

After setting aside S$20,000 in your OA and S$40,000 in your SA, you can invest the remaining amount.

You can invest up to 35% of your investable OA savings in funds and stocks, and up to 10% in gold and gold-related products. There is no limit to how much of your investable SA savings you can invest, but you have to keep a minimum balance of S$40,000.

Why should I invest my CPF savings?

If you let your savings sit passively in your account, the interest rates they accrue are very low:

Type of accountInterest rate per year
Ordinary Account2.50%
Special Account4%
Retirement Account4%
Medisave Account4%

If you want to earn more, consider the following before you take the plunge:

  1. Will my investment be able to yield a higher return compared to the CPF interest rates?
  2. Do I have the risk appetite for the investment product I am going for?

Your CPF savings can be used to invest in the following.

Ordinary Account:

  • Unit Trusts
  • Investment-linked Insurance Products
  • Endowment Policies
  • Annuities
  • Singapore Government Bonds
  • Exchange Traded Funds (ETFs)
  • Treasury Bills
  • Fund Management Accounts
  • Shares (up to 35% limit of investable savings)
  • Corporate Bonds (up to 35% of investable savings)
  • Property Funds (up to 35% of investable savings)
  • Gold ETFs (up to 10% of investable savings)
  • Other gold products (up to 10% of investable savings)

Special Account:

  • Investment-linked Insurance Products (excluding high-risk products)
  • Unit Trusts (excluding high-risk products)
  • Annuities
  • Singapore Government Bonds
  • Endowment Policies
  • Treasury Bills

A list of investment products under the CPFIS can be found here. You can also compare the available CPF investment options here.

How do I get started?

If you want to start investing your OA savings, you have to first open a CPF investment account with OCBC, DBS, or UOB bank.

If you want to start investing your SA savings, you do not need to open a CPF investment account. You can contact one of these financial institutions or insurers to begin investing.

If you are a first-time investor, we recommend you exercise caution and engage a financial advisor or broker to manage your CPF investments. But if you are well-versed in investing and prefer to be in charge of your own investments, you can open a brokerage account before you begin.

Investments will not make you rich overnight, but by investing your savings, you make better returns than letting the money sit inside your account. If you do not have enough cash on hand, the CPFIS is a good way of starting your investment journey and diversifying your portfolio

Always be wise

All investments come with a certain level of risk, so make sure you do your due diligence and know what you are in for before you start investing.

Always remember to consider your situation before you make any investments. If you are close to retirement, in need of funds to purchase a home, or if you notice that your investments are making less than the given interest rates, think about whether you are investing at the right time and whether you should hold back at the moment.

Start by taking the CPF Self-awareness Questionnaire here!

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