4 people who should transfer their savings from OA to SA

11 May 2018 

Did you know that you could grow your retirement savings without making cash top-ups to your CPF accounts? You can do so by transferring your Ordinary Account (OA) savings into your Special Account (SA) to leverage on the higher interest rate.


Here are four people who should consider it:

4 people who should transfer their savings from OA to SA.png

1. The risk-averse investor
If you’re afraid of shady investment schemes, you can grow your money risk-free in your SA—which earns up to 5% p.a. interest, compared to your OA savings that earn up to 3.5% p.a. These rates include an extra 1% on the first $60,000 of your combined CPF balances (with up to $20,000 from the OA). By making a CPF transfer, you can grow your savings faster with the higher compound interest rate.

2. The mortgage-free homeowner
One benefit of your OA savings is its ability to be used for financing your housing loan. However, if your loan is fully paid, you no longer need to reserve your OA savings for housing! This gives you the freedom to transfer part of your OA savings to your SA to earn more interest for retirement.

If you have other payments that use your OA savings, such as a CPF Education Loan or your DPS premiums, you can also make the transfer to your SA after setting aside sufficient savings. 

3. The inflation fighter 
You could benefit from a CPF transfer too! Your SA savings earn risk-free interest at a floor rat​e of 4%, which is currently higher than the headline inflation rate in Singapore.

4. The future retiree planning for higher monthly payouts
Compound interest will more than double your SA savings in 20 years. By leveraging on the higher interest rate in your SA (up to 5% p.a.) over time, you will be able to increase the size of your CPF LIFE payouts in the future. 

Do note that a transfer of savings from OA to SA cannot be reversed, and you should consider your needs carefully before doing so. Transfers can be made up to the current Full Retirement Sum in your SA (for those below 55) and up to the current Enhanced Retirement Sum in your RA (for those 55 and above). For more information, please visit the CPF website. ​

Information accurate as at 11/5/2018

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