ON TOP of the guaranteed interest rates on people's Central Provident Fund (CPF) sums, perhaps there could be a yearly performance bonus as well - an additional percentage point for the year that is tied to the performance of our investment vehicles ("Proposed CPF changes give members more control"; Feb 5).
This will reward savers and may encourage members to save with the CPF instead of emptying it to buy property.
I view the Ordinary Account as a savings account that can be used to purchase property, shares, fund studies, and so on, and thus, it earns a lower interest (2.5 per cent).
The Special Account would then be a fixed deposit account that earns a higher interest rate (4 per cent to 5 per cent).
These rates are not to be sniffed at. Promotional fixed deposit rates with a bank are currently around 1.3 per cent, and those of a regular savings account are too insignificant to even be mentioned.
I have, on a few occasions, challenged my financial advisers to match or better the 4 per cent to 5 per cent interest rates of the CPF with the instruments they were recommending.
Words like "projected" or "up to" were used, but none was able to promise me a guaranteed 5 per cent interest rate with nearly zero risk.
Lee Ju Guang
This will reward savers and may encourage members to save with the CPF instead of emptying it to buy property.
I view the Ordinary Account as a savings account that can be used to purchase property, shares, fund studies, and so on, and thus, it earns a lower interest (2.5 per cent).
The Special Account would then be a fixed deposit account that earns a higher interest rate (4 per cent to 5 per cent).
These rates are not to be sniffed at. Promotional fixed deposit rates with a bank are currently around 1.3 per cent, and those of a regular savings account are too insignificant to even be mentioned.
I have, on a few occasions, challenged my financial advisers to match or better the 4 per cent to 5 per cent interest rates of the CPF with the instruments they were recommending.
Words like "projected" or "up to" were used, but none was able to promise me a guaranteed 5 per cent interest rate with nearly zero risk.
Lee Ju Guang
