Extra 1% interest for CPF savings and MSTU.

The following is contributed by a reader:

 

The CPF Board's response is appended below. I've edited the questions and part of the response to mask personal information hence, the flow of CPFB's reply may not make sense but I trust that the key points of interest are in there. Feel free to reproduce it:
 

Question: How would the extra 1% interest earned on OA + SMRA be earned? 

 

The extra 1% interest per year is currently paid on the first $60,000 of a member’s combined CPF balances.

 

The priority of the accounts that make up the $60,000 is as follows: 

 

1. Retirement Account (RA), including balances used to pay for the annuity premium under CPF LIFE

2. Ordinary Account (OA), up to $20,000

3. Special Account (SA)

4. Medisave Account (MA)

 

In general, CPF interest is computed monthly, and will be credited and compounded to your respective accounts yearly.

 

Any excess of the FRS will remain in the OA/SA which the member can apply to withdraw.  

 

There are no restrictions on when a member, age 55 and above, can make the withdrawals throughout the year. Now, they can apply for withdrawal at any time as long as they have the withdrawable monies and the Board will assess their applications.

 

 

 

 

 

 

 

Question: Assuming FRS of $X and MSTU of $(X + Y) including interests. At age 55, can $Y be withdrawn? 

 

No, the top-up monies of $Y cannot be withdrawn as these are meant for recipient’s retirement needs. Hence, the member cannot apply to withdraw the top-up monies:

(a) for payment of education, investments, insurance, housing, etc;

(b) by pledging his property in lieu of the Full FRS; and

(c) via exemption from the Retirement Sum Scheme.

 

Related posts:

1. Retire with a bond and an annuity.

2. CPF MS Top Up and interest computation.

Investing or gardening, be ready to go to war!

Several years ago, I tried to grow cherry tomatoes on my balcony. 

I had three pots and they were all growing well. 

They flowered and eventually I had some fresh cherry tomatoes. 




Unfortunately, the good times didn't last very long because the plants were infested by white flies and eventually died. 

White flies are nasty insects and usually cling to the undersides of leaves in large numbers. 

Once infested by white flies, the fruits from the plants are not safe to eat either. 

Well, the important thing is that I had a lesson in gardening which I remember. 




So, when I decided to renew my efforts at gardening in the last one year, I decided not to grow cherry tomatoes despite suggestions by some people to do so. 

Instead, I decided to grow plants that would ward off all sorts of nasty insects. 

I have a pot of Basil, a pot of Rosemary, a pot of Lemon Balm and two troughs of Catnip. 

These ward off mosquitoes, house flies and other nasties. 

Rosemary.

Basil.

Lemon Balm.

Catnip.

I am also trying to grow Rosemary from seeds. 


Here is a photo taken today:

The one on the right is ahead in the race.

I am also pleased to share that my Alliums have flowered today:

Waiting for them to bloom fully.

Alliums (the onion family) repel many insects, apparently.

I also recently tried to grow some Nasturtiums which are originally from South America. 

The whole plant including the flowers are edible, apparently. 

Peppery in taste or so I read. 

Got the seeds from NTUC Fairprice Xtra.

The main reason for planting Nasturtiums is not for eating although I could try. 

What I really want is their ability to ward off those cherry tomato plant murderers, those white flies!

Today, I see the first Nasturtium seedling emerging from the soil:

Hope the rest of the seedlings follow soon.




Once the Nasturtiums are fully grown, if I should try my hand at growing some cherry tomatoes again, I wouldn't have to fear those nasty white flies!

Whether investors or gardeners, our chances of success would be higher if we are ready for war!

Related posts:
1. Be prepared for war!
2. Life is about many things.