CPF: Minimum Sum Top Up and Interest Computation.

This blog post is a reply to questions posed by a reader, Vicster: here.




Hi Vicster,

1. Since your home loan is fully paid up and if you do not have any other uses for the funds in your OA now or in the future, you could consider doing an OA to SA funds transfer.





2. "You can enjoy tax relief of up to $7,000 per calendar year, for cash top-up for yourself and/or cash top-ups received from your employer. You can enjoy an additional tax relief of up to $7,000 per calendar year if you make cash top-ups for your parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings. To qualify for tax relief for cash top-ups for your spouse/sibling(s), he must not have an annual income exceeding $4,000 in the year preceding the year of top-up (e.g. salary or tax-exempt income such as bank interest, dividends, and pension) or is handicapped."




Source: Application to Make Top-Ups Under the Minimum Sum Topping-Up Scheme (For Members)

3. That is a good idea but you could also do an estimate of what your mandatory contributions (MC) for the year might be and do a voluntary contribution (VC) earlier in the year to receive more in interest payments.


4. "CPF interest is computed monthly, then compounded and credited annually to your respective accounts."




Source: CPF Interest Rates: FAQs.

Related post:
How to upsize $100K to $225K in 20 years?

McDonald's Surprise Alarm.

Arranged to meet a friend for lunch after work at McDonald's.

Here's why:

Thanks to McDonald's Surprise Alarm, I have redeemed 2 free Iced Milo, 1 free Coke, 1 free French Fries and had a 1 for 1 offer for 6 piece McNuggets so far. Oh, it also saved me from oversleeping in the mornings twice so far.

Not an advertorial. I just simply like it. Brilliant!

Related post:
A meal for $2.00 from McDonald's.