In most cases, when most people talk about housing and CPF, they simply think of how they can use their CPF savings to purchase a home. However, when you are thinking of how to use your CPF savings to buy a home, it is advisable also to think of how you can use these savings to sell the house. Therefore, if you have decided to do any of the above activities, ensure that you have enough retirement savings that will enable you to sell your property quickly. The following therefore are just some of the critical facts you are required to know about cpf accrued interest.
Types of accounts
If you have ever heard of Basic Health Care Sum, Retirement Account and CPF Life, never be worried because these are the primary terms you are supposed to know anytime you think about CPF. These terms should never confuse you. Go back and conduct your research before you decide to choose the CPF. It is important to note that the only accounts you should pay attention to are the Medisave, Special and Ordinary account. This is an essential factor you are required to consider because each month you will be asked to contribute 20% of your net salary to your CPF and your company will contribute 17%.
If you are a beginner, it is advisable to understand that your CPF money earns a certain interest for you. That is why you will realize that your interest rate is always 1% higher for any first salary you get. Also, if the returns are risk-free, then this means that no transaction cost was incurred. This is a good idea you are required to check once you get your salary.
Use Medisave account
There are three types of accounts you are required to have. The Medisave account is one of the crucial accounts you are recommended to use more especially when you are planning to buy an integrated shield plan. This account, therefore, is meant to help you deal with your hospitalization bill. Therefore, in case of any surgery process, you will be allowed to use your money from the Medisave account. Due to this reason, it is essential to use this type of an account to buy an integrated shield plan that will help you to cover the cost of your treatment. Lastly, before you make your last decision, make sure that you know about these facts.…Read More →