c/singapore · by trewq@lemm.ee · 2yInterest rate for CPF Special and MediSave accounts rises to 4.04% in Q4 https://www.channelnewsasia.com/singapore/cpf-special-medisave-account-interest-rate-rises-q4-2023-37877315 points · 2 comments · view on lemmy.world
2 Comments
Hi1307@monyet.cc · 1 pts · 2y
So you get the same rate as straight up buying SGD bonds, but instead with a 55yr-lifetime lock in period
trewq@lemm.ee · 1 pts · 2y
From what i know cpf interest is compounded while ssb is simple one (i forgot the actual term, rate * invested amt). By right compunded interest give better result than simple one for the same rate over time.
Source: https://www.cpf.gov.sg/member/faq/growing-your-savings/cpf-interest-rates/how-is-my-cpf-interest-computed-and-credited-into-my-accounts -> first paragrah: compounded annually.
Using this calc https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator $1000 with 4% compounded interest gives you $3,243.40 1,000 with simple 4% rate gives you $2,200