What is the best option to save our kids Ang Bao $$$

[Vevey]

We invest in unit trusts on their behalf too.

[dicky]

CPF topup to SA account. There is no info on CPF website, and not many people know about it. In fact, kids can have CPF the minute they are borned by cash topup to open their CPF account.


Stock market dividend not too bad for some, lousy for most others. Unit trust ok, but high mgmt fee means interest returns not great either. Insurance, capital guaranteed or protected plans also another way, though may have penalty early withdraw.

So arghh… Forget it. DS angbao at most $150 per year, not enough buy even 1 lot.

[starlight1968sg]

dicky:

CPF topup to SA account. There is no info on CPF website, and not many people know about it. In fact, kids can have CPF the minute they are borned by cash topup to open their CPF account.


Stock market dividend not too bad for some, lousy for most others. Unit trust ok, but high mgmt fee means interest returns not great either. Insurance, capital guaranteed or protected plans also another way, though may have penalty early withdraw.

So arghh..... Forget it. DS angbao at most $150 per year, not enough buy even 1 lot.

I wrote to CPF to ask and got the below reply:

Dear [my name]

Thank you for your email of 11 May 2011.

You may make a voluntary contribution to your daughter's 3 CPF Accounts or to her Medisave Account only.
Contributions to all three CPF accounts will be distributed according to the current allocation rates based on the various age groups. You may view the allocation rates at http://mycpf.cpf.gov.sg/Members/Gen-Info/Con-Rates/ContriRa.htm

You may use the following methods to make VC:

1. e-Cashier at CPF website

You can make a one-time VC through E-Payment if you have an internet banking facilities with DBS/POSB, UOB, OCBC or Citibank.

2. AXS Station
You can make a one-time VC using any AXS Station available island-wide. Please select Government > CPF > A Member/ Self-Employed >Contribution Services > As Member (Voluntary). Payment can be made with an ATM card (via D-pay or NETS) or Diners Club Credit Card. Payment by ATM card is subject to the daily withdrawal limit set by the respective banks.

3. iNETS kiosk

You can make a one-time VC at any iNETS kiosks. Please select Government Services > CPF > A Member/Self-Employed > Contribution Services > As Member (Voluntary). Payment can be made via NETS, CashCard or FlashPay Card. Payment by NETS is subject to the daily withdrawal limit set by your respective banks.

4. GIRO (for monthly VC into 3 CPF Accounts only)
You can make monthly VC into your 3 CPF Accounts by completing a GIRO form: http://mycpf.cpf.gov.sg/NR/rdonlyres/62F91521-8163-4FB9-A470-F56ABC2425DA/0/applforintbkgirose.pdf.
To start your monthly VC deductions upon your GIRO approval, indicate the VC amount you wish to contribute monthly via My Requests or complete the Standing Instruction Form: http://mycpf.cpf.gov.sg/NR/rdonlyres/A627F669-C5AE-4039-A5BD-A37B077A7F5C/0/Form_Giro_SIVC.pdf

5. Cheque payment
You can make a one-time VC by sending in a cheque made payable to “Central Provident Fund Board”. The cheque should be submitted with FORM VC/1 – Voluntary Contribution for CPF Member: http://mycpf.cpf.gov.sg/NR/rdonlyres/3A08672A-A114-43E8-8B6F-EBC96A439A0B/0/FORM_VC1.pdf

All cheques and forms should be mailed to:

Central Provident Fund Board
79 Robinson Road
CPF Building
Singapore 068897

The CPF Annual Limit for mandatory and voluntary contribution is $27,158 for 2011 VC made in the current year cannot be backdated to the previous year i.e. VC made in March 2011 cannot be backdated to 2010. Any contribution in excess of the annual limit will be refunded without interest.

VC to the Medisave Account is subject to the Medisave Contribution Ceiling (MCC) and the CPF Annual Limit, whichever is lower. The prevailing MCC is $39,500.

The table below shows the calculation of the maximum amount of VC that can be made for 2011. No further VC can be made if the member’s mandatory contributions already reach $27,158.

A summary table is as follows:
Amount of Mandatory Contributions (MC)
Maximum amount of Voluntary Contributions (VC)
MC < $27,158
Maximum amount of VC = $27,158 – MC
MC > = $27,158
VC = $0

You may also make top-ups to her Special Account only.

Under the scheme, the maximum amount that your daughter can receive is the difference between the prevailing Minimum Sum (currently $123,000) less the net balances in his/her Ordinary and Special Accounts (including CPF withdrawn for investments).

You may apply to make top-ups online at our website at http://mycpf.cpf.gov.sg/Members/home.htm by following the steps listed below.
1. Click on \"Login here with your Singpass\" under the section my cpf Online Services
2. Key in giver's identification number and Singpass
3. Click on \" My Requests\" under the section my cpf Online Services
4. Select \"Building Up My / My Recipient's CPF savings (eg. Transfer OA to SA savings, Topping up to my RA, CPF Minimum Sum Topping-Up Scheme, etc)\" and click \"Proceed\"
5. To make a cash top-up, please click on \"Contribute to my / my recipient's Retirement Account via internet banking | cheque\", your intended payment mode and follow the instructions to submit the top-up application.

Please select the \"Others\" category under \"Relationship of recipient with giver\".

We would be pleased to assist you if you require further clarification. For more information, please visit our website at http://www.cpf.gov.sg or call us on 1800-227 1188 (Mondays to Fridays 8am - 6pm).

Thank you.

Yours sincerely

XXX
Customer Correspondence Unit
Central Provident Fund Board
(\"[email protected]\" <[email protected]>)

[dicky]

Great! Apparently the rules have changed again, from last year.

:celebrate:

[superkiasuparent]

haha i invest their money on their behalf too lol there’s really very little point in putting money in savings account these days

[kayemoss]

starlight1968sg:

dicky:

CPF topup to SA account. There is no info on CPF website, and not many people know about it. In fact, kids can have CPF the minute they are borned by cash topup to open their CPF account.


Stock market dividend not too bad for some, lousy for most others. Unit trust ok, but high mgmt fee means interest returns not great either. Insurance, capital guaranteed or protected plans also another way, though may have penalty early withdraw.

So arghh..... Forget it. DS angbao at most $150 per year, not enough buy even 1 lot.

I wrote to CPF to ask and got the below reply:

Dear [my name]

Thank you for your email of 11 May 2011.

You may make a voluntary contribution to your daughter's 3 CPF Accounts or to her Medisave Account only.
Contributions to all three CPF accounts will be distributed according to the current allocation rates based on the various age groups. You may view the allocation rates at http://mycpf.cpf.gov.sg/Members/Gen-Info/Con-Rates/ContriRa.htm

You may use the following methods to make VC:

1. e-Cashier at CPF website

You can make a one-time VC through E-Payment if you have an internet banking facilities with DBS/POSB, UOB, OCBC or Citibank.

2. AXS Station
You can make a one-time VC using any AXS Station available island-wide. Please select Government > CPF > A Member/ Self-Employed >Contribution Services > As Member (Voluntary). Payment can be made with an ATM card (via D-pay or NETS) or Diners Club Credit Card. Payment by ATM card is subject to the daily withdrawal limit set by the respective banks.

3. iNETS kiosk

You can make a one-time VC at any iNETS kiosks. Please select Government Services > CPF > A Member/Self-Employed > Contribution Services > As Member (Voluntary). Payment can be made via NETS, CashCard or FlashPay Card. Payment by NETS is subject to the daily withdrawal limit set by your respective banks.

4. GIRO (for monthly VC into 3 CPF Accounts only)
You can make monthly VC into your 3 CPF Accounts by completing a GIRO form: http://mycpf.cpf.gov.sg/NR/rdonlyres/62F91521-8163-4FB9-A470-F56ABC2425DA/0/applforintbkgirose.pdf.
To start your monthly VC deductions upon your GIRO approval, indicate the VC amount you wish to contribute monthly via My Requests or complete the Standing Instruction Form: http://mycpf.cpf.gov.sg/NR/rdonlyres/A627F669-C5AE-4039-A5BD-A37B077A7F5C/0/Form_Giro_SIVC.pdf

5. Cheque payment
You can make a one-time VC by sending in a cheque made payable to “Central Provident Fund Board”. The cheque should be submitted with FORM VC/1 – Voluntary Contribution for CPF Member: http://mycpf.cpf.gov.sg/NR/rdonlyres/3A08672A-A114-43E8-8B6F-EBC96A439A0B/0/FORM_VC1.pdf

All cheques and forms should be mailed to:

Central Provident Fund Board
79 Robinson Road
CPF Building
Singapore 068897

The CPF Annual Limit for mandatory and voluntary contribution is $27,158 for 2011 VC made in the current year cannot be backdated to the previous year i.e. VC made in March 2011 cannot be backdated to 2010. Any contribution in excess of the annual limit will be refunded without interest.

VC to the Medisave Account is subject to the Medisave Contribution Ceiling (MCC) and the CPF Annual Limit, whichever is lower. The prevailing MCC is $39,500.

The table below shows the calculation of the maximum amount of VC that can be made for 2011. No further VC can be made if the member’s mandatory contributions already reach $27,158.

A summary table is as follows:
Amount of Mandatory Contributions (MC)
Maximum amount of Voluntary Contributions (VC)
MC < $27,158
Maximum amount of VC = $27,158 – MC
MC > = $27,158
VC = $0

You may also make top-ups to her Special Account only.

Under the scheme, the maximum amount that your daughter can receive is the difference between the prevailing Minimum Sum (currently $123,000) less the net balances in his/her Ordinary and Special Accounts (including CPF withdrawn for investments).

You may apply to make top-ups online at our website at http://mycpf.cpf.gov.sg/Members/home.htm by following the steps listed below.
1. Click on \"Login here with your Singpass\" under the section my cpf Online Services
2. Key in giver's identification number and Singpass
3. Click on \" My Requests\" under the section my cpf Online Services
4. Select \"Building Up My / My Recipient's CPF savings (eg. Transfer OA to SA savings, Topping up to my RA, CPF Minimum Sum Topping-Up Scheme, etc)\" and click \"Proceed\"
5. To make a cash top-up, please click on \"Contribute to my / my recipient's Retirement Account via internet banking | cheque\", your intended payment mode and follow the instructions to submit the top-up application.

Please select the \"Others\" category under \"Relationship of recipient with giver\".

We would be pleased to assist you if you require further clarification. For more information, please visit our website at http://www.cpf.gov.sg or call us on 1800-227 1188 (Mondays to Fridays 8am - 6pm).

Thank you.

Yours sincerely

XXX
Customer Correspondence Unit
Central Provident Fund Board
(\"[email protected]\" <[email protected]>)

Hi hi, just want to ask on this. So it means there is no min sum to maintain in the child's CPF account n we can just do the voluntary top-up as & when we want?

Thanks!

[dicky]

Yeap. Any amount…