• Types of CPF Investment Schemes

    You can invest your CPF savings largely under 2 investment schemes:

    • CPF Investment Scheme or CPFIS
    • SDS or Special Discounted Shares Scheme which are applicable only on SingTel shares that were offered in the year 1993 & 1996.

    Under the CPF Investment Scheme or CPFIS, you can use the savings in your Ordinary Account or OA and Special Account or SA to make investments that can multiply your savings when you retire.

    Are you eligible to invest under the CPF Investment Schemes?

    You are eligible to invest under this scheme if:

    • You are 18 years of age and above.
    • You aren’t an undischarged bankrupt.
    • You either have over S$20,000 savings in your Ordinary Account or over S$40,000 savings in your Special Account.

    How to invest in CPFIS using CPF savings?

    There are two CPFIS that you can invest your CPF savings into:

    • The first is CPFIS-OA which is the CPF Investment Scheme – Ordinary Account – You can invest in CPFIS-OA if you have set aside at least S$20,000 in your OA.
    • The second is CPFIS-SA which is the CPF Investment Scheme – Special Account – You can invest in CPFIS-SA if you have set aside at least S$40,000 in your SA.

    You can invest your savings in CPFIS-OA up to a maximum of 35%. You can invest your investible savings (OA balance + CPF amount withdrawn for education and investment) up to 10% in stock and gold (this is called the stock and gold limits).

    Follow the instructions below to find out how much of your OA and SA savings you can invest:

    • Access my CPF Online Services and navigate to My Statement. You will need your SingPass to log in to the CPF website for this.
    • iPhone users – Use your SingPass to access CPF Tools.
    • As an alternative, you can visit your nearest CPF Service Centre using your ID card.

    What CPFIS to invest in using savings in Ordinary Account and Special Account?

    You can use the savings in your Ordinary Account and Special Account to invest in the following:

    • Fixed Deposits.
    • Singapore Government Bonds.
    • Bonds Guaranteed by Singapore Government.
    • Statutory Board Bonds.
    • T-bills or Treasury Bills.
    • UTs or Unit Trusts.
    • Annuities.
    • ILPs or Investment linked insurance products.
    • ETFs or Exchange Traded Funds.
    • Endowment policies.

    You can invest up to 35% of your OA investible savings in the following:

    • Property funds.
    • Shares.
    • Corporate Bonds.

    You can invest up to 10% of your OA investible savings on Gold through the following:

    • Gold ETS.
    • Physical gold.
    • Gold certificates.
    • Gold savings accounts etc.

    Things to consider before investing in CPFIS

    Any investment that you make carries some amount of risk. Risk here means the possibility that you stand a chance to lose a part or the whole investment because of changes in the financial market.

    You should consider the following aspects involved in investments before you choose to invest your CPF savings on CPFIS:

    • Risk Tolerance – Here you must consider the level of risk you may be comfortable with. You should ask yourself the following questions:
      • What amount of risk are you comfortable with?
      • How much risk in monetary terms can you afford to take on?
      • Will you be able to handle/manage any temporary setbacks in your investment?
      • Do you have sufficient savings to absorb any risks on your investment?

    Note – To assess your level of risk tolerance you can take the “Risk Tolerance Questionnaire” which is available on the CPF website.

    • Investment Time Horizon – Here you must consider the period of your investment. Your CPF savings exist to assist you when you retire. You can make long term investments if you are not retiring any time soon and short-term investments if you are nearing the age of retirement.
    • Your Financial Situation Overall – Here you must consider what financial commitments you have and what lifestyle you are looking at when you retire. Think about any other assets you have for your retirement other than your CPF savings and how you have invested them previously before you invest your CPF savings on CPFIS.
    • CPF Interest Rates – All your CPF Accounts earn interest. Here you must consider what interest you will earn when you invest in one or more products under CPFIS and if they will fetch you higher rates than what your CPF savings are earning currently.

    Applying for CPFIS

    Applying for CPFIS-OA:

    You can apply to any of the CPFIS agent banks listed below:

    • OCBC.
    • UOB.
    • DBS Bank.

    You will need to open a CPF Investment Account and provide your CPF Statement when you invest your Ordinary Account savings.

    Applying for CPFIS-SA:

    You can directly approach the product provider with whom you want to buy/sell your investment. You do not have to open a CPF Investment Account to invest your Special Account savings.

    Withdrawing your CPFIS Investments when you turn 55 years

    To withdraw your CPFIS-OA/SA investments, you can apply to the CPF Board. You can also request any cash balance remaining in your Investment Account after setting aside your applicable BRS (Basic Retirement Sum) or FRS (Full Retirement Sum) with enough property pledge/charge in your RA (Retirement Account).

    How to apply for withdrawal -

    • Online – my cpf:
      • Login to the CPF website via your SingPass.
      • Go to “My Requests” and submit the online application.

    Note - Your application will be processed within 1 business day after receiving your application and your respective agent bank/product provider will receive notification of the same. Your agent bank/product provider will get in touch with you for further information for transferring your investments.

    • Mail:
      • Download the form, “Application form for Withdrawal of Investment under CPF Investment Scheme”.
      • Complete the form and mail it to the CPF Board.

    Note - Your application will be processed within 3 business days after receiving your application and your respective agent bank/product provider will receive notification of the same. Your agent bank/product provider will get in touch with you for further information for transferring your investments.

    SDS Schemes – Special Discounted Shares Scheme

    The SDS scheme falls under the Government’s asset enhancement program which aimed at making the country a share-owning society by giving citizens a greater stake.

    In the years 1993 and 1996, CPF members could purchase discounted SingTel (ST) shares called “STA shares” and “ST2 shares” respectively. Additionally, members who retained their shares received loyalty shares.

    Selling discounted ST Shares

    You can sell the discounted ST shares at Singapore Post Offices by providing your ID Card and the latest CPF SOA or Statement of Account.

    If you are unable to go to the post office on your own, you can request someone else to go on your behalf to sell the shares. The person must provide the following documents:

    • A letter authorized by you granting the person to sell your shares on your behalf.
    • “Account Opening and Authorization For the Sale of STA and ST2 Shares Form”, completed, signed by you or your thumbprint. This form is available at all Singapore Post Offices.
    • ID Card of yourself and the authorized person.
    • Your latest CPF SOA or Statement of Account.

    Withdrawing your Singtel shares when you turn 55 years

    To withdraw your SingTel shares, you can apply to the CPF Board after setting aside your applicable BRS (Basic Retirement Sum) or FRS (Full Retirement Sum) with enough property pledge/charge in your RA (Retirement Account).

    You need to open a CDP Account (Central Depository Pte Ltd) and pay S$10.70 as transfer fee before withdrawing your SingTel shares.

    How to apply for withdrawal -

    • Online – my cpf:
      • Login to the CPF website via your SingPass.
      • Go to “My Requests” and submit the online application.
    • Mail:
      • Download the form, “Application form for Withdrawal of Investment under CPF Investment Scheme”.
      • Complete the form and mail it to the CPF Board.

    Note - Your application will be processed within 15 business days upon receipt of application + transfer fee into CDP Account. This period includes the time CDP will take to process your payment.

    How to pay the transfer fee into the CDP Account –

    You can pay the transfer fee through the following payment modes:

    • Online through e-Cashier.
    • Online through any of the AXS stations.
    • Cheque.

    Investments are subject to market risks. Therefore, if you do not feel comfortable or confident about investing the savings in your CPF Account, you can choose to leave the savings in the respective accounts where they will continue earning interest without you having to take any risk for your return on savings when your retire.

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