Make the most of your CPF investments

Did you know you can actually invest part of your CPF savings? Through the CPF Investment Scheme (CPFIS), you can grow your CPF savings instead of letting them sit idle. The catch? You need to be informed and cautious.

What is CPFIS?

• CPFIS lets you invest your Ordinary Account (OA) and Special Account (SA) savings in approved products like unit trusts, ETFs, bonds, and more.
• Not all your CPF money is available. You need to keep at least $20,000 in your OA and $40,000 in your SA before investing.

What can you invest in?

• Unit trusts and ETFs: For growth over the long term
• Treasury Bills (T-Bills) and Singapore Government Bonds (SGS): Lower risk, steady returns
• REITs and stocks: For those comfortable with more risk
• Check the CPF list of approved products before diving in.

Things to consider:

1. Your investment knowledge
   You must complete a Self-Awareness Questionnaire before using CPFIS. It’s there to make sure you understand what you’re doing.
2. Returns vs CPF interest
   CPF OA already gives you 2.5% p.a. risk-free. If your investment earns less than that, you’re better off not touching it.
3. Long-term commitment
   Money in CPF is generally set aside till age 55+, so CPFIS is only for long-term goals, not short-term cash needs.