If I turn age 55 in the middle of the month, why do the Special Account savings transferred to my Ordinary Account not earn 4% interest from the start of the month to the day I turn age 55?
CPF interest is computed monthly, and is credited to your respective accounts by the following year. As the Special Account (SA) amounts transferred to your Ordinary Account (OA) are withdrawable, the funds earn 2.5% interest for the month you turn age 55, in line with the principle that short term funds earn the lower short-term interest rates.
If you wish to earn the higher long-term interest rate, you can transfer your OA savings, which originated from your SA, to your Retirement Account (RA). If you are still receiving monthly employment contributions in your OA after 55, consider setting up monthly recurring CPF transfers from your OA to your RA to earn higher interest on your CPF contributions.
The transfer is irreversible, and will be paid to you as monthly payouts and cannot be withdrawn for other purposes.
This information is sourced from CPF
Related questions
How much interest will I earn on the Special Account (SA) savings that are transferred to my Retirement Account and Ordinary Account upon the closure of my SA when I turn 55?
My Special Account (SA) will be closed when I turn age 55 in the middle of the year. If I have the Full Retirement Sum, where does interest earned on my SA (before SA closure) go? Do I lose any interest for the remaining months till the end of the year?
My Special Account (SA) savings were transferred to the Ordinary Account (OA) after SA closure, as I have set aside the Full Retirement Sum. With the OA having lower interest, what can I do to earn the interest that the SA pays?
How can I make monthly transfers of my CPF employment contributions from my Ordinary Account to Retirement Account?
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