Wednesday, January 16, 2013

CPF Investment Account for Index Investing


Can you use money from your CPF to do index investing?
Yes!

If you are using your money from your CPF Ordinary Account (OA), you can open a CPF Investment Account with any one of the three CPFIS agent banks :

1. DBS Bank Ltd (DBS)
2. Oversea-Chinese Banking Corporation Ltd (OCBC)
3. United Overseas Bank Ltd (UOB)

Any amount in your CPF ordinary account (not including the first S$20,000) can be invested into Exchange-Traded Funds (ETF).

Important Things to Take Note

1. Transaction Charges - Check with individual banks for latest rates
2. Service Charges - S$2 service charge, per counter, every quarter

These two will quickly increase your cost if you're investing a small sum monthly!

3 comments:

  1. is ETF under the rule of 35% of CPF in share investing

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    Replies
    1. Interesting that you asked, I did a quick comparison between the banks' websites.

      UOB - ETF not listed
      POSB - Listed with 35% cap
      DBS - Listed without cap
      OCBC - Listed without cap

      Seems like we have conflicting information here. Let me try to find out more on this.

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