CPF Interest Rate

min annual interest rate 2.5% on Ordinary Acct and guaranteed min annual rate 4% on Special Acct

CPF i/r based on 12-mth FD and mth-end savings rates of major local banks - revised quarterly

interest - computed mthly
                  - credited and compounded annually.

Limits to your CPF Funds

3 Types of caps to watch for in repaying housing loan:

• Valuation Limit (VL)
  - This ceiling is hit when CPF savings used for mortgage payment = purchase price / valuation of the property, whichever lower.
  When that happens --> need to have half prevailing minimum sum in Ordinary Account and / or Special Account before can use any excess CPF savings.
• Available Housing Withdrawal Limit (AHWL)
  - Beyond the VL, excess CPF savings available to repay loans
  - A moving limit as it goes up when have new CPF contribution and down when minimum sum increases.
• Withdrawal Limit (WL)
  - The AHWL, in turn is subject to WL.
  - The maximum amount of CPF funds that can be used for a property. No further CPF funds can be used when limit is reached. If housing loan outstanding when limit reached, home owners have to use cash for future instalments.