How to invest using your CPF saving?

CPFIS stands for CPF Investment Scheme. It allows CPF members to invest their CPF savings so as to enhance their retirement saving. Currently 2.5% interest is given for the Ordinary Account (OA) and 4% interest for the Special Account. And there is an extra 1% interest to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA).

For those who are willing to take risks in order to achieve higher return might want to consider CPFIS. CPFIS allows CPF members to invest in various instruments such as unit trusts, ILPs, fixed deposits, bonds shares and ETFs. These instruments must be stated under the CPF approved list.

In order to invest using CPFIS, you have to:

1) Open a CPF Investment Account. You can open this account with DBS, UOB or OCBC bank.

2) Check how much you can invest by logging into the CPF website. Please note that different limits are set on different investment products.

3) Link your CPF Investment Account with the necessary investment company. For example, if you are buying shares or ETFs, you have to inform your broker to link your CPF Investment Account with your trading account.

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