1. What is CPF Accrued Interest?

CPF (Central Provident Fund) accrued interest represents the interest earned on CPF savings over time. This calculator helps you determine how much interest your CPF savings would earn over a specific period.

2. How Does the Calculator Work?

The calculator uses the CPF accrued interest formula:

Where:

• \( Principal \) — Initial amount in CPF account (SGD)
• \( CPF Rate \) — Annual CPF interest rate (%)
• \( Days \) — Number of days the interest accrues

Explanation: The formula calculates simple interest based on the principal amount, annual interest rate, and the time period in days.

3. Importance of Calculating CPF Interest

Details: Understanding how interest accrues on your CPF savings helps with financial planning, especially for retirement and housing purchases. It allows you to project your CPF savings growth over time.

4. Using the Calculator

Tips:

• Enter the principal amount in SGD
• Use the current CPF interest rate (typically 2.5% for Ordinary Account, 4% for Special/Medisave/Retirement Accounts)
• Enter the number of days you want to calculate interest for

5. Frequently Asked Questions (FAQ)

Q1: How often is CPF interest credited?
A: CPF interest is calculated monthly and credited annually at the end of each year.

Q2: Are CPF interest rates fixed?
A: No, CPF interest rates are reviewed quarterly and may change based on market conditions, though they have floor rates.

Q3: Is the interest compounded?
A: Yes, CPF interest is compounded annually. This calculator shows simple interest for a specific period.

Q4: What's the difference between OA and SA rates?
A: Ordinary Account (OA) typically has lower interest (currently 2.5%) than Special/Medisave/Retirement Accounts (currently 4%).

Q5: How is interest calculated for partial years?
A: Interest is calculated on a daily basis, so this calculator can accurately compute interest for any number of days.