Your CPF Ordinary Account (OA) acts as a safety net for the future. But wouldn’t you want to maximise the returns from your OA? This is why the government has allowed dedicated and secure CPF Investment Schemes (CPFIS). The CPFIS gives you the financial freedom and control of determining where you should invest your savings. DBS is one of the banks that provides you with a CPF Investment Account through which you can invest your CPF savings profitably.
Features and Benefits
There are several benefits of investing in this account, as you can see below:
- You can invest in any of the vehicles listed below:
- Bonds from the Statutory Board, or issued/guaranteed by the Singapore Government
- Treasury Bills from the Government of Singapore
- Unit Trusts
- Exchange Traded Funds (ETFs)
- Fund Management Accounts
- Gold shares from SPDR
- Insurance and investment-linked policies
- Shares, Corporate Bonds and Property Funds
- You can easily access all your investment-related information. This includes monthly statements that provide information about your investment, approximate market value, gross costs, and important notices.
- If you have a DBS savings account or credit/debit card, you can link the CPFIS to it and access all information through Phone Banking, iBanking or ATMs.
- The Singapore Deposit Insurance Corporation (SDIC) insures the CPFIS and CPF Retirement Sum amounts under its Deposit Insurance Scheme, up to a total of S$50,000 per person. This is in addition to the insurance provided on other general Singapore dollar deposits placed with the bank.
If you haven’t invested the amount lying in your CPF Investment Account, then you will get a base interest of 0.050% p.a. Your invested amount will yield returns depending on what vehicle you have invested in.
You May Like to Compare with Current DBS FD Rates
Fees and Charges
The following charges are applicable on the DBS CPFIA:
|Buying, selling, cash offer, application for rights or excess rights, conversion of warrants/loan stocks or preference shares, exercise of share options and IPO allotment related to shares/ETFs/loan stocks/property funds/unit trusts||S$2.50 for each 1,000 units of any instrument; maximum amount chargeable – S$25 per transaction|
|Buying, selling or getting interest from Gold ETFs||S$2.50 for each 10 units; maximum amount chargeable – S$25 per transaction|
|Placement, receipt, payment, bank-to-bank transfer, lapse or reinstatement of transaction related to fund management accounts, fixed deposits, insurance plans and investment-linked plans||S$2.50 per transaction|
|Buying, selling and getting interest from Singapore Government Securities||S$2.50 per transaction|
|Buying, selling and getting interest from Statutory Board Bonds, privatisation exchangeable notes||S$2.50 for a minimum lot size; maximum amount chargeable – S$25 per transaction|
|Cash top-up refund||S$2 per transaction|
|Trade cancellation||S$5 per failed transaction|
|Application of IPO shares||S$2 per transaction|
|Rights application||S$10 per application|
|Excess Rights application||S$5 per application|
|Transfer of account between banks||S$3 for each 1,000 shares/units/loan stocks/minimum lot size; maximum chargeable amount – S$30 per transaction. For other instruments, S$3 per transaction.|
The following eligibility parameters should be met to open a CPF investment Account:
- You have to be a CPF member.
- You must be a minimum of 18 years old.
- You must have more than S$20,000 in the CPF OA.
- You shouldn’t be declared a bankrupt.
Q. How do I open a CPF Investment Account?
A. You can open this account in two ways:
- By filling a form and applying online
- By visiting any of the DBS branches
Q. Is there any limit on any of the investment instruments?
A. Yes. You can buy ETFs and Fund Management Accounts with only up to 35% of the savings you’re permitted to invest. SPDR Gold shares can be bought with only up to 10% of the investable amount.
Q. What transactions can I do on the CPFIA using iBanking?
A. You can perform the following transactions using iBanking:
- Check how much balance is remaining for you to invest
- Check the investment portfolio
- Buy Unit Trusts
- Electronic Security Application (ESA) and enquiry of its results
- Move money from CPFIA to CPF OA
- Check available stock and gold limit