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.
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:
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.
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.
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:
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:
You can visit any of the bank branches from Monday to Saturday except for public holidays to complete the formalities for opening your CPFIA.
The following table shows the bank charges related to various transactions and services offered:
|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|
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.
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.
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.
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.
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.