Types of CPF Accounts

Types of CPF accounts

Earlier, we have already talked about different types of CPF accounts. Let’s dive a little bit deeper into it. These are the different types of accounts:

• Ordinary account
This account is intended for housing, insurance and investment. For young people who are aged 35 years old and under, their salaries mostly will go into this account. Ordinary account is like a savings account to help Singapore citizens and Singapore permanent residents to pay huge expenses such as tuition fees and housing expenses. For tuition fees, you have to be enrolled as a full time student in undergraduate courses and only selected universities such as NUS, NTU, SMU etc. For housing expenses such as buying and designing HDB flats also for survey and legal fees. The ordinary account accumulates interest rates up to 3,5%.
• Special account
This account functions especially for older people and investment in financial products for retirement. So when you turn 55 years old, this account will be created and the funds in ordinary account will be transferred to a special account. The extra interest earned in ordinary account will go into this account too. You can use this account as savings for your retirement and investments that are related to retirement which are low risk such as Singapore Government Bonds. The special account accumulates interest rates up to 5%.
• Medisave account
This account is intended for ​​healthcare, medical bills and approved insurance. You can use Medisave funds for certain health treatments and also for your dependants like spouse and kids. For inpatients where the condition is you’re hospitalized and have to undergo surgery, then you can use $450 per day to pay for hospital bills. But if you’re just an outpatient, a condition where you don’t need to stay overnight at hospital, you can’t use Medisave funds except for certain cancer treatments, HIV treatments and also diagnostic tests/scans. The medisave account has 4% interest rates.
• Retirement account
This account will be automatically created on your 55th birthday. The funds in the ordinary account and special account will be transferred to this account. This account provides you with monthly income during your retirement until you turn 95 years old. If your retirement account reaches $60.000, then you will be enrolled in CPF life automatically. CPF life is a national scheme that provides you with a lifetime monthly income so you don’t need to worry about not having money until you pass away.

CPF contribution rate for each account

• Ordinary account
- For employees aged below 35, it takes 23% of your wage to allocate into this account
- For employees aged 35 - 45, it takes 21% of your wage to allocate into this account
- For employees aged 45 - 50, it takes 19% of your wage to allocate into this account
- For employees aged 50 - 55, it takes 15% of your wage to allocate into this account
- For employees aged 55 - 60, it takes 12% of your wage to allocate into this account
- For employees aged 60 - 65, it takes 3,5% of your wage to allocate into this account
- For employees aged 65 and above, it takes 1% of your wage to allocate into this account
• Special account
- For employees aged below 35, it takes 6% of your wage to allocate into this account
- For employees aged 35 - 45, it takes 7% of your wage to allocate into this account
- For employees aged 45 - 50, it takes 8% of your wage to allocate into this account
- For employees aged 50 - 55, it takes 11,5% of your wage to allocate into this account
- For employees aged 55 - 60, it takes 3.5% of your wage to allocate into this account
- For employees aged 60 - 65, it takes 2.5% of your wage to allocate into this account
- For employees aged 65 and above, it takes 1% of your wage to allocate into this account
• Medisave account
- For employees aged below 35, it takes 8% of your wage to allocate into this account
- For employees aged 35 - 45, it takes 9% of your wage to allocate into this account
- For employees aged 45 - 50, it takes 10% of your wage to allocate into this account
- For employees aged 50 and above, it takes 10.5% of your wage to allocate into this account