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Should there be a broader pool of investment options under CPFIS?

Raphael Lim

Raphael Lim

Published Thu, May 4, 2023 · 05:50 AM
    • Savvy investors have been applying to invest their CPF savings – particularly OA funds with lower yields – with many opting for Singapore Treasury bills.
    • Savvy investors have been applying to invest their CPF savings – particularly OA funds with lower yields – with many opting for Singapore Treasury bills. PHOTO: PIXABAY

    EACH month, over a third of most working Singaporeans’ salary enters their Central Provident Fund (CPF) accounts – forming a significant part of one’s net worth.

    For decades – with low inflation and bank interest rates at near zero per cent – many would have done well by simply leaving their funds untouched and receiving risk-free guaranteed returns.

    But sticky inflation and rising interest rates have made the base 2.5 per cent interest paid on funds in the Ordinary Account (OA) less attractive.