Topping up my CPF Medisave Account. Again?

So, I did a top up to my CPF Medisave Account. 

Wait a minute.

Didn't AK say his CPF MA already hit the Basic Healthcare Sum which means no top up is allowed?

Yes, I did.

However, NTUC Income does a deduction yearly to pay for my private shield plan.

I try to remember to top up my CPF MA whenever this happens.

Still, I would forget sometimes.

The CPF MA pays 4% p.a.

Risk free and volatility free, it is too good to miss.

Don't have to do the top up immediately.

Just have to do the top up a few days before the end of the month since CPF only considers the lowest balance in the month when calculating interest to be paid for the month.

Of course, by doing this, it ensures we earn more interest in the CPF MA. 

And interest earned in the CPF MA will overflow into the SA in the new year for those who have yet to hit the Full Retirement Sum.

The CPF SA also pays 4% p.a.

This will help grow our CPF savings faster.

Oops. I should have said 4.04% p.a.

Huat ah!

I am looking forward to topping up my CPF MA again in the new year if they increase the Basic Healthcare Sum.

This is probably going to be $3,000 or so, if it happens.

Don't look down on 4% or 4.04% p.a.

Even if we have yet to hit the Basic Healthcare Sum, with $50,000 in the CPF MA, we are still getting $2,000 in interest income per year, for example.

That would be enough to pay for most people's  yearly medical insurance policies.

Of course, I first blogged about this in 2013, and I have talked to myself about this from time to time since then.

If AK can do it, so can you!

References:
1. Do you want free medical insurance?
2. Free medical insurance in our old age?

T-bill's 3.87% p.a. cut-off yield and only 79% allotted.

After the 4.07% p.a. cut-off yield in the prior T-bill auction, I was looking forward to a possibly higher cut-off yield for this auction.

Unfortunately, the possibility of a much higher cut-off yield attracted many low-ballers, and that crushed all hopes of a higher yield.

If we look at the average yield for this auction and the auction that took place on 28 Sep, it is quite clear what happened.

This auction's average yield is 3.37% p.a.

28 Sep's average yield was 3.51% p.a.

There were people bidding much lower than 3.37% p.a. to secure the T-bills in this auction.

As low as 2.37% p.a.

That is just asinine.

That is even lower than what the CPF-OA pays!

The amount of interest in this auction shot through the roof as only 79% of non-competitive bids were allotted.

I hope the low-ballers are happy now that everyone ends up with a lower cut-off yield.

Reference:
4.07% p.a. T-bill.