CPF Ordinary, Special, and MediSave Accounts: Who Qualifies and What You Get
Understand how your mandatory salary deductions are divided into different accounts to cover housing, healthcare, and retirement.
This scheme manages your mandatory savings through several different accounts designed to help you pay for housing, healthcare, and your eventual retirement.
Who it's for
This scheme applies to all Singaporean employees. It is a mandatory system that ensures workers have a foundation of savings for their long-term needs.
What you get
Your money is distributed into specific accounts, such as the Ordinary, Special, and MediSave accounts. These accounts earn interest on the balance you have saved. The interest rates on these savings typically range from 2.5% to over 4%, helping your funds grow over time to support your future lifestyle and medical expenses.
What it costs you
This scheme is funded through monthly deductions taken directly from your gross salary. While this means your take-home pay is lower each month, these funds are being moved into your personal savings accounts to build a safety net for your housing, health, and retirement needs.
The catch to know
A common thing people miss is the opportunity to manage their savings more effectively for tax benefits. Specifically, you can choose to top up your Special Account to receive tax relief, which can help reduce the amount of tax you owe.
How to apply
- Confirm that your employer is correctly calculating and deducting the mandatory amounts from your monthly gross salary.
- Log in to the official portal to view your current balances across your different accounts.
- Regularly review your interest earnings and account totals to plan for your long-term financial goals.
For more information and to manage your accounts, visit the official portal: https://www.cpf.gov.sg