As a citizen or permanent resident of Singapore, you may have heard of the Central Provident Fund (CPF) – the country’s comprehensive social security savings scheme. But did you know that there are various CPF schemes available to cater to different needs and situations? Let’s take a closer look at two of the main schemes – the Ordinary Account and the Special Account – and how they can benefit you.
The Ordinary Account (OA) is the primary account under the CPF scheme, where contributions from both employers and employees are made to help save for retirement, housing, and investment needs. The interest earned on the OA is currently at 2.5% per annum, making it a safe and reliable way to grow your savings over time. On the other hand, the Special Account (SA) is geared towards long-term savings for retirement and has a higher interest rate of 4% per annum. This makes it a suitable choice for those looking to grow their retirement nest egg.
Aside from the OA and SA, there are also other CPF schemes available such as the Medisave Account, which helps cover medical and hospitalization expenses, and the Retirement Account, which is a separate account that holds your CPF savings specifically for retirement. Some of these schemes also come with additional benefits, such as tax reliefs and government subsidies, making it advantageous for Singapore citizens and permanent residents to