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    OCBC CPF Investment Account

    The Central Provident Fund Investment Scheme (CPFIS) offers you a chance to invest your money deposited in the CPF Ordinary Account (OA) in a variety of investment vehicles. The biggest benefit of this scheme is that it helps you maximise your returns for a comfortable post-retirement life.

    If you’re looking to build a fund that will hold you in good stead post-retirement, investing in CPFIS will help you immensely. You can invest your OA monies in CPFIS securities and CPFIS products. The investment has to be made through a board-appointment agent bank.

    As a working Singaporean, you’ll be in charge of your CPF Investment Account (CPFIA) portfolio and can decide on the allocations you wish to make towards different investment schemes and vehicles. OCBC is one of the banks in Singapore offering you the option of maintaining a CPF investment account.

    Investment Instruments Available Under CPFIS

    CPFIS provides you with a number of options to invest your money. You can invest your money in one or more of the following instruments:

    • Insurance policies
    • Government bonds
    • Unit trusts
    • Fixed deposits
    • Shares
    • Equity traded funds (ETFs)
    • Physical gold and gold ETFs
    • Corporate bonds
    • Bonds guaranteed by the Singapore government
    • Deferred annuities
    • Endowment insurance policies
    • Investment-linked insurance products
    • Singapore Government treasury bills
    • Statutory board bonds

    You can invest up to 35% of your investible savings in shares and corporate bonds and up to 10% of your investible savings in gold. If you have invested in gold or gold certificates with the money available in your OCBC CPF Investment Account, you’ll have to deposit these with the bank.

    As these investment instruments and schemes are closely monitored by the CPF board, the investment and return prospects are better.

    Customised Financial Planning

    To get personalised investment advice, you can get in touch with a relationship manager from OCBC. A relationship manager can use their experience and domain knowledge to assess your investment objectives, the current market scenario, and your specific needs to offer you insights into various products. They’ll also explain why a product is or isn’t suitable for you.

    However, personal financial guidance can’t guarantee a positive return. There is also no guarantee that your investment targets will be fully or partially met. Before making investments, you need to be fully aware of the risks involved. Long-term investments will, in general, decrease the risks and increase the quantum of returns on your investments.

    Eligibility Criteria for Opening an OCBC CPFIA

    The government of Singapore has laid down a set of eligibility criteria for investing in CPF investment accounts from your CPF ordinary account. They’re as follows:

    • You should be 18 years or above on the date of opening of your CPFIA.
    • You shouldn’t be an undischarged bankrupt.
    • You can have only one CPFIA. You can’t hold multiple investment accounts under CPFIS in the same bank or other banks.
    • You’ll need to have funds in excess of S$20,000 in your Ordinary Account. The first S$20,000 can’t be invested which means that only the excess fund will be considered as your investible savings. The money in your OA that can’t be invested, will fetch you an interest at 0.05%.

    How to Apply for an OCBC CPFIA

    If you’re an existing OCBC account holder, you can open and link your CPFIA directly with your savings account. You’ll be able to view and manage your CPFIA with your online credentials.

    If you’re not an existing savings account holder with OCBC, you’ll have to visit one of the physical locations with a set of documents. Following the successful verification of your identity and income documents, an account will be opened under your name.

    The documents that you need to produce include:

    • NRIC if you’re a Singaporean or a Singaporean PR, your passport if you’re a Malaysian, and your passport and EP/WP if you’re a foreigner from any other country.
    • You’ll also have to produce one of the following documents:
    • A bank statement
    • A phone bill
    • Your half-yearly CPF statement

    You can visit any of the bank branches from Monday to Saturday except for public holidays to complete the formalities for opening your CPFIA.

    Bank Charges on Your OCBC CPF Investment Account

    The following table shows the bank charges related to various transactions and services offered:

    Particulars Charges
    Safe custody charges for gold 0.25% p.a. based on the month’s highest balance; minimum S$2 per month
    Rights application, excess rights application whether successful or unsuccessful, cash offers, purchase, sale, IPO allotment and conversion of loan stocks (for unit trust, shares or loan stocks) S$2.50 for 1000 shares per unit or parts thereof; maximum S$25 per transaction
    Rights application of warrants with cash (unit trust, shares or loan stocks) S$15 per transaction
    Purchase and sale transactions on statutory board bonds S$2.50 per tradable lot or any part thereof; maximum S$25 per transaction
    Purchase and sale transactions on government securities S$2.50 per transaction
    Payment and receipt of funds for fixed deposits, insurance policies and fund management accounts S$2.50 per transaction
    Interbank transfer of CPF investment account S$3 for 1000 shares per unit or part thereof; maximum S$30.00 per transaction S$3 per transaction for any other investment
    Cancellation of trades S$5 for processing each unsuccessful transaction
    Electronic share application for initial public offer S$2.00 for every transaction
    CPF cashier’s order for initial public offer S$2 for every transaction
    Service charge for transactions carried out in any financial instrument covered under the OCBC CPF Investment Account S$2 per counter per quarter

    Electronic Banking Facilities

    OCBC offers a variety of electronic facilities on its CPF investment accounts. Internet banking, phone banking, mobile banking and ATM facilities are offered to every account holder. You can use these facilities to make balance enquiries, security holding enquiries, channel your balance back to your CPF ordinary account through the board, make IPO applications and do a lot more.

    Monthly Statements

    If you’re an OCBC CPF investment account holder, you’ll get a statement of accounts at the end of each month or at other intervals as decided by the bank. The statement, which aims to provide a snapshot of your portfolio, will offer you with important details of the transactions carried out during the period including the opening and the closing balance.

    It is your responsibility to check the accuracy of the details furnished in the statement and to intimate the bank of discrepancies or errors within 14 days from the date of issue of the statement. Failing to notify the bank within this period will mean that you have accepted the details contained thereof as accurate. You’ll lose your right to contend the veracity of the details after that.

    Cash Top-Up

    In the event of a shortfall in funds in your CPFIA needed to pay for a call, subscription or entitlements of any kind, the CPF Board may allow you to use your own funds to finance the purchase or payout. In such an event, you’re expected to credit your OCBC CPF Investment Account at least 1 business day prior to the actual date of transaction.

    If you pay for a cash top-up through cheque, the amount will only be credited to your account after the cheque has been cleared. For some reason if the transaction fails, the bank will not refund the cash top-up directly to you since it will be considered to be a contribution governed by the terms and conditions of the OCBC CPF Investment Account.

    Restrictions

    An OCBC CPFIA customer can’t engage in contra trading of any CPFIS security, trade on margins or trade on credit extended by any CPFIS product provider. Further, a customer may not be allowed to use the funds from his CPF investment account for any purpose other than for investments in the instruments available under CPFIS.

    Refunds

    If you want to transfer the entire or a portion of the balance available in your OCBC CPF Investment Account to your OA, you’ll have to provide the bank with a written notice at least 2 business days in advance.

    You’re also expected to ensure that you have enough funds in your account before raising a request for a refund. If the refund requested exceeds the fund in your account, the request will be deemed to be invalid.

    If your account stays inactive for a continuous period of 2 months or any period mandated under the government regulations, the bank will automatically refund the entire balance to your ordinary account.

    You’ll also have the right to transfer your CPF investment account to another appointed agent bank whenever you want.

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