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May 15, 2017

5% Savings Account For Kids

5% Savings Account For Kids

Singapore Savings Account Rates blogspot dot com presents new update on savings and other banking accounts in Singapore today.

Singapore Savings Account Rates helps you to boost interest income from savings accounts, savings bonds and other financial retail investments in Singapore.

What is this 5% Savings Account For Kids?
Use cash to top-up your kids' CPF Special Account. Earn up to 5% p.a.. This method uses the CPF Retirement Sum Topping-Up Scheme (RSTU).

Why use this 5% Savings Account For Kids?
Think of it as a kind of long-term fixed deposit product with the highest interest rate in the market for your child.

(1) CPF pays interest of 4% p.a. on Special Account. For the first $60,000.00, an additional 1% is paid, making a total interest rate of 5%p.a.

Compounding every year until age 55 will grow your child's CPF special account exponentially.


(2) You also build up retirement savings of your child to receive higher monthly payouts in future.

How to do it?

You can top up your kids CPF Special Account online. There is no need to visit CPF office for this simple transaction.

Method:
Log in to your personal CPF account online using SINGPASS.
Select "My Requests" on left hand panel.
Select "Building Up My / My Recipient's CPF savings" on right panel
Select "internet banking using e-cashier" or "OCBC's Internet Banking" or "cheque" and make appropriate payment.
Complete the steps in submission to receive a Transaction Number.

If using OCBC internet banking, log in to your OCBC internet banking account.

On OCBC internet banking site, Choose Pay Bill.
Choose "CPF Board" as payee.
Key in the Transaction Number as provided by CPF at end of your submission.
Choose payment amount.
Submit.
Complete payment with your OCBC dongle's One Time Password.





See also:
Singapura Blue Sky Savers update
5% Savings Account For Kids
FD Promo: SING Investments & Finance
Standard Chartered 11-month FD Promo

Note that top up to your child's CPF special account is irrevocable. You cannot refund the payments made.

Your child cannot withdraw / use the money from CPF Special Account until at least age 55.

There is no IRAS dollar-for-dollar personal income tax relief for such top-up payment.

CPF top-up limits apply. Currently you cannot top up more than Full Retirement Sum Scheme ($166,000 as of 2017) less sum in Special Account.

CPF rules may change over time.



Thanks for reading Singapore Savings Account Rates.

The Team

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