20151203 CPF OA interest rate 3.5%??

I refer to “CPF Ordinary Account interest rate stays at 3.5% for first quarter of 2016”.

While CNA, and other nation-building media, reported “CPF interest rates to remain unchanged”, the editor of a government mouthpiece appears to be sleeping on the job or trying to get in PAP’s good books. Fact – CPF OA interest rate will remain unchanged at 2.5%.

At least Yahoo did a better job by misleading correctly in “CPF interest rates of up to 3.5 per cent extended”. The majority of CPF members will not receive 3.5% because the additional 1% is only on the first $30,000 for members aged 55 and above.

SPH editors might as well report “CPF OA rate stays at 6%” because that’s the highest interest rate applicable to members aged 55 and above. Again, that’s only on the first $30,000.

Hmm … I wonder if this is related to our 150th press freedom index ranking, almost overtaking the Democratic Republic of the Congo, heading to the bottom.

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4 Responses to 20151203 CPF OA interest rate 3.5%??

  1. abc says:

    OK looks like everybody is confused over CPF interest rates.

    1) Minimum basic of 2.5% for OA and 4% for SA, MA, RA remains the same as stipulated in CPF Act.

    2) Additional 1% for the first $60K combined OA + SA, with up to $20K in OA being considered. This applies to ALL ages from 0 to 1000000000+++++. Therefore up to 3.5% for first $20K in OA and up to 5% for first $40K-$60K in SA (depending how much you have in OA). This has been ongoing for many years liao.

    3) For those aged 55 & above, there will be yet another 1% for the first combined $30K in OA+SA. They never say whether got proportion between OA and SA just like for the first 1% in (2) above. So assume flexible, either OA or SA or both also can. That means up to 4.5% for the first $0-$30K in OA (depend how much already applied in SA), and up to 6% for first $0-$30K in SA (depending how much already applied in OA).

    Get it?!?! Oh, and (3) starts in 2016.

    • Phillip Ang says:

      It is PAP’s intention to confuse CPF members by introducing additional 1% for the first 60k and then another 1% for the first 30k. Makes them look damn good but the max 6% is only applicable to those aged 55 and above. Every scheme to assist Singaporeans, especially housing, is as confusing.
      It appears our scholars are doing sooooo much for Singaporeans but the end result is the same: most Singaporeans do not have sufficient funds for retirement because CPF savings are mostly channelled into housing. 😦

  2. abc says:

    That’s why highly paid civil servants & PAPpy scholars love their jobs. Everyday is masak masak one. Doing meaningless things, attending meaningless meetings, writing meaningless emails and reports, and presenting meaningless powerpoint presentations. Everything is just an academic exercise, to make themselves look good, to meet self-created KPIs, to get on the promotion ladder, to target superscale salaries. But nothing much good for the people.

    That’s why the obfuscating rules especially for CPF & HDB since they are the equivalent of PAPies grabbing you by the balls. As they say grab them by the balls and their hearts & minds will follow.

    In the first place, why not simply have a single 5% interest for entire CPF? S’pore’s govt tax & land sales revenues and returns from TH & GIC more than enough to cover this 5% rate.

    Actually, in the very very very first place, why did PAP open Pandora’s box to allow CPF to be used to buy property just to prop up their property developer and banking friends after the 1986 recession??? If CPF had been retained purely for its original purpose, CPF will today be enough for the average Sinkie to retire on. At the same time, property in S’pore, especially HDB flats, will still be as affordable as in the 1970s and early 1980s. Prices will only go up hand-in-hand with wage increase.

    • Phillip Ang says:

      CPF initially supported high housing prices but this has run out of steam. Our jiak liow bee scholars then hatched this foreign talent grand plan and Singaporeans are told we really need foreigners to create good jobs for locals.
      PAP will continue to support our fake GDP with millions of foreigners. A reversal of immigration policy will cause an economic collapse and PAP will lose face, big time.
      The sole purpose of increasing CPF contributions is to support high housing prices and eventually prices of all goods and services. Our GDP figures are as fake as fake can be. So if PAP had stuck to CPF’s original mission, it would not have increased members’ contribution to 37% and up to 50% in 1985.
      Since our scholars are really not that smart in the real world of investment, there would still have been a shortfall in retirement funding for Singaporeans. 😦

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