Unlock Financial Freedom with CPF Investment Scheme (CPFIS) in Singapore: Your Path to Central Provident Fund Wealth, CPF Money, and Invest Your CPF Retirement Planning Success

by | Sep 29, 2023

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What is CPFIS Central Provident Fund Investment Scheme

CPF, short for the Central Provident Fund, is Singapore’s answer to securing your financial future.

It’s not just another savings account; it’s your lifeline for a comfortable retirement. CPF was born out of a vision – to ensure that every Singaporean can retire with peace of mind and financial stability.

In this article, we’ll unravel the mysteries of CPFIS, guiding you through its intricacies, withdrawal options, penalties, and retirement schemes.

By the end, you’ll be equipped with the knowledge to make informed decisions, ensuring that your CPF savings pave the way for a secure financial future.

So, whether you’re just starting your CPF journey at 18 or planning for the years ahead, let’s embark on this captivating exploration of CPFIS together.

Key Takeaways

  1. CPF Purpose: CPF is a Singaporean government savings scheme designed to ensure retirement funds.
  2. CPFIS Introduction: CPF Investment Scheme (CPFIS) allows CPF members to invest their savings for potential growth.
  3. Investment Options: CPFIS offers unit trusts, fixed deposits, and ETFs, catering to different objectives and risk levels.
  4. Benefits of CPFIS: It offers higher returns than CPF Ordinary Account (CPF-OA), investment-linked insurance, and flexibility in fund usage.
  5. Diversification: CPFIS helps diversify savings beyond traditional CPF accounts.
  6. Minimum Age: Members must be 18 to start investing through CPFIS.
  7. Withdrawal Age: CPFIS withdrawals begin at 55.
  8. Penalties: Early withdrawals before 55 may incur penalties.
  9. Anticipated Changes: CPFIS is evolving with changes in CPF interest rates, management accounts, and eligible accounts for investment.
  10. CPFIS vs. SRS: CPFIS and Supplementary Retirement Scheme (SRS) offer different benefits and investment options, so choose wisely based on your goals and preferences.

Introduction to CPFIS (Central Provident Fund Investment Scheme) | CPF to Invest, CPFIS, CPFIS-OA, Unit Trust, Fixed Deposit and CPF Savings

What is CPF?

The Central Provident Fund (CPF) is a savings scheme introduced by the Singapore government to ensure Singaporeans have enough funds for retirement.

It is a financial product designed to meet the long-term savings needs of individuals.

How does CPFIS work?

The CPF Investment Scheme (CPFIS) allows CPF members to invest their CPF savings in various investment options to potentially grow their retirement funds.

To start investing, members can open a CPF Investment Account (CPFIA) managed by the CPF Board.

CPFIS offers a wide range of investment options, including unit trusts, fixed deposits, and exchange-traded funds (ETFs).

These options cater to different investment objectives and risk appetite.

However, it is important to consider the risks and returns associated with each investment product before making any decisions.

Benefits of investing through CPFIS

Investing through CPFIS offers several benefits.

First, it allows CPF members to potentially earn higher returns on their CPF savings compared to the CPF Ordinary Account (CPF-OA) interest rate.

This can increase the overall retirement income.

Secondly, CPFIS provides access to investment-linked insurance policies, which offer a combination of life insurance coverage and investment opportunities.

 Another benefit is the flexibility to utilize CPFIS-Ordinary Account (CPFIS-OA) funds, CPFIS-Special Account (CPFIS-SA) funds, or a combination of both for investment purposes.

This allows individuals to tailor their investments according to their financial situation and retirement goals.

Additionally, investing through CPFIS helps to diversify retirement savings beyond traditional CPF savings, providing a wider range of investment options.

CPFIS plays a crucial role in helping Singaporeans grow their CPF savings and achieve long-term financial security.

However, it is important to do thorough research and consider one’s investment objectives and risk tolerance before investing in any CPFIS investment products.

Start Investing | CPFIS Investment Options – Exchange Traded Funds 

So, guess what? DBS has this new thing called the CPF Investment Account! Now, I know what you’re thinking – CPF? Sounds boring, right? But wait, hold your horses, because this is no ordinary CPF account.

With DBS, you can invest your CPF money and earn some serious interest – a whopping 2.5% per annum! I mean, who knew your CPF could be so exciting? And it gets even better.

You can also invest your ordinary account, and this time, the interest rate is a cheeky little 0.4

 It might not sound like much, but hey, it’s still better than nothing, right?

Now, I know what you’re thinking.

Investing can be a daunting task.

But fear not, my friend, because DBS has got your back.

They’ve got all these fancy investment services and tools that can help even the most clueless investor navigate through the jungle that is the financial world.

They offer things like brokerage services and investment advisory to make sure you’re making the right choices.

And if you’re like me and have no idea what ETFs are, don’t worry, DBS has got those too! You can invest in etfs or oa savings to invest, E-T-Fun!

So, here’s the deal.

With DBS and their CPF Investment Account with dbs, you can actually make your CPF work for you.

You can earn some sweet interest on your hard-earned money and even invest in things like ETFs to make it grow even more.

Who knew being financially responsible could be so much fun? So go ahead, give it a try.

Let DBS make money matters less boring and more, well, hilarious!

So, you know that you can earn a minimum interest of 2.5 p.a using cpf on your savings in Singapore.

But why settle for minimum when you can aim for maximum? Leave your money in the boring old savings account and watch it grow at a snail’s pace, or take matters into your own hands and invest your OA savings for a brighter future.

Sure, sure, everyone talks about retirement and how important it is to save up, but let’s be real here.

Retirement is like a never-ending vacation, and who wants to be stuck on a tight budget, sipping on cheap cocktails by the pool? Not me, that’s for sure! So, why not put your Singapore savings to work and make your money do the heavy lifting for you? Ideally be investing, you’ll be investing in something that will give you a higher return than the measly 2.5%.

Picture this: you’re sipping on a fancy cocktail, listening to the waves crash on the beach, all while your investment tools keep growing and growing.

Sounds like a dream, right? Well, it can be your reality if you muster up the courage to invest your OA savings wisely.

And hey, don’t worry about not having enough for your full retirement sum.

You can always use your OA savings to top it up and still have some left over for all the fancy retirement activities you’ve been dreaming of.

So go on, start investing and watch your savings after setting aside for retirement blossom into a glorious bouquet of financial freedom!

CPFIS investment options

Which investments are available through CPF Investment Scheme

The Central Provident Fund Investment Scheme (CPFIS) provides a range of investment products to help individuals grow their CPF savings.

One of the investment options available is Exchange Traded Funds (ETFs).

ETFs are funds that are traded on stock exchanges, representing a basket of underlying assets such as stocks, commodities, or bonds.

Investing your CPF in ETFs through the CPFIS offers several advantages.

Firstly, ETFs provide diversification as they hold a wide variety of assets.

This helps to spread out your risk and minimize exposure to any single investment.

Secondly, ETFs are highly transparent as their holdings are publicly disclosed.

This allows you to make informed investment decisions.

Lastly, ETFs are traded on stock exchanges, making them easily accessible and providing liquidity for investors.

How to choose the right CPFIS investments for you

How to get started with CPFIS

When considering CPFIS investments, it is important to assess your investment goals, risk tolerance, and time horizon.

Determine whether you are investing for retirement or other financial goals.

Consider your risk appetite and select investments that align with your comfort level.

It is also crucial to evaluate the potential returns and overall performance of the investment products.

To start investing in CPFIS, you can open a CPF Investment Account with one of the approved banks or financial institutions.

You can then choose from a range of investment products, including unit trusts, fixed deposits, corporate bonds, and ETFs.

Do note that different investment products may have varying fees and charges, so it’s important to understand the costs involved.

Risk management tips for CPFIS investors

CPFIS investors should carefully consider their risk appetite.

Higher-risk investments, such as equity funds or ETFs, may offer potential higher returns but also come with greater volatility.

Balance your investment portfolio to include lower-risk options, such as fixed deposits or endowment policies, to mitigate risk exposure.

Regularly review your investment performance and make adjustments based on your goals and market conditions.

Stay informed about the investment products you have chosen and be aware of any changes in regulations or market trends.

Lastly, consider seeking professional advice from licensed financial advisors to ensure your CPFIS investments are in line with your long-term financial objectives.

By understanding the CPFIS investment options and managing risks effectively, individuals can make the most of their CPF savings and work towards a secure financial future.

Minimum age for CPFIS withdrawal

To start investing through the CPFIS, members must be at least 18 years old.

At this age, they become eligible to participate in the scheme and enjoy the benefits it offers.

The CPF Board pays a basic interest rate of 2.5% per annum on CPF savings.

However, members who opt for the CPFIS can potentially earn higher returns by investing their CPF savings in various investment instruments, including unit trusts, fixed deposits, and exchange-traded funds (ETFs).

CPFIS withdrawal options and penalties

CPFIS withdrawal rules

When it comes to withdrawing CPFIS investments, it’s important to note that members can only start making withdrawals from their CPF Investment Account (CPFIA) at the age of 55.

Upon retirement, members can choose between the CPF Lifelong Income For the Elderly (CPF LIFE) scheme, which provides monthly payouts, and the Retirement Sum Scheme (RSS), which offers a combination of cash and CPF payouts.

While the CPFIS provides flexibility in choosing investment products, it’s essential to consider the risks involved.

Members should be aware that investments come with the possibility of capital loss, and it’s crucial to have a diversified investment portfolio to mitigate risks.

Additionally, members who withdraw their CPFIS investments before the age of 55 may incur penalties.

It’s advisable to consult with a financial advisor or the CPF Board for guidance on the best path to take based on one’s financial goals and circumstances.

In conclusion, the CPFIS allows CPF members to invest their savings and potentially earn higher returns for their retirement.

By leveraging the various investment options available under the scheme, members can diversify their portfolio and maximize their CPF savings.

It’s crucial to have a clear understanding of the CPFIS withdrawal options, penalties, and retirement schemes to ensure a successful retirement journey.

Planning for CPFIS in 2023 and Beyond

Are you a CPF member in Singapore wondering how to make your CPF savings work for you? Look no further than the Central Provident Fund Investment Scheme (CPFIS).

This scheme allows CPF members to invest their CPF savings and potentially earn higher returns.

Anticipated changes and updates to CPFIS in the near future

The CPFIS is constantly evolving to meet the changing needs and preferences of CPF members.

In 2023 and beyond, there are several anticipated changes and updates to CPFIS that you should be aware of.

  1. CPF Interest Rate: The interest rate for CPF savings in the Ordinary Account (OA) is expected to be adjusted. This could potentially impact the returns on CPFIS investments.
  2. Management Account: CPF members will have the option to open a CPF Investment Account as a management account to facilitate CPFIS investments. This account will be separate from their CPF Ordinary Account.
  3. SUM Scheme: The Special Account (SA), Medisave Account (MA), and Retirement Account (RA) will no longer be eligible for CPFIS investment. Only funds in the Ordinary Account (OA) can be invested through CPFIS.
  4. CPF Board (CPFB) investment options: The CPFB will introduce new investment options such as Singapore Government Bonds and Exchange Traded Funds (ETFs) eligible for CPFIS investments.

To invest your CPF savings under CPFIS-OA, you will need to open a CPF Investment Account with a participating bank or financial institution. 

It is important to note that you need to set aside a minimum sum of $20,000 in your Ordinary Account before you can invest any excess funds.

How to switch between CPFIS and SRS

CPFIS vs. SRS Which investment scheme is right for you

CPF members who have savings in their Ordinary Account (OA) and Supplementary Retirement Scheme (SRS) can consider switching between the two to maximize their investment options.

Here’s how to do it:

  1. Ideally, you should be investing your CPF OA savings first before tapping into your SRS savings to take advantage of the CPFIS-OA benefits.
  2. Transfer your savings to invest under CPFIS-OA by opening a CPF Investment Account with a participating bank or financial institution.
  3. Consider the various investment options available, such as unit trusts, fixed deposits, and ETFs, to diversify your CPFIS-OA portfolio.
  4. Take note of any wrap fees or charges that may apply when investing through CPFIS. These fees vary depending on the investment product and the financial institution.

Planning for CPFIS in 2023 and beyond requires staying informed about the anticipated changes and updates.

By making strategic decisions and understanding how to switch between CPFIS and SRS, you can make the most of your CPF savings.

Start investing wisely to secure a better financial future

CPF Investment Scheme – CPF Money | Invest Your CPF 

The Central Provident Fund Investment Scheme (CPFIS) is a program in Singapore that allows individuals to invest their CPF savings in a wide range of investments to help grow their retirement savings.

Whether you are looking to invest in unit trusts, fixed deposits, or exchange-traded funds, CPFIS offers various options to suit your investment goals.

Final thoughts on utilizing CPF savings through CPFIS

If you wish to invest your CPF savings, CPFIS can be a beneficial option.

Here are a few key points to consider:

  • Asset Management: CPFIS allows you to diversify your investments and manage your assets more effectively.
  • Rate of Return: While CPFIS investments come with risks, they also offer the potential for higher returns compared to the CPF Ordinary Account interest rate of 2.5% per annum.
  • Conflict of Interest: It’s important to note that CPFIS investment products are offered by financial institutions. Ensure that you understand any potential conflict of interest that may arise.

To invest your CPF savings through CPFIS, you will need to provide your CPF account number to the financial institution of your choice.

Before investing, make sure you have set aside sufficient savings in your CPF Ordinary Account for housing and other essential needs.

Which investment scheme is better for you?

When deciding which CPFIS investment scheme is better for you, consider the following factors:

  • Investment Goals: Determine your investment objectives and timeframe to choose the most suitable investment option.
  • Investment Risks: Different CPFIS investments carry varying levels of risk. Assess your risk tolerance and choose investments accordingly.
  • Wrap Charges: Be aware of any fees or wrap charges associated with CPFIS investments.

Ultimately, the choice between CPFIS investments depends on your personal financial situation and risk appetite.

It is recommended to consult a financial advisor for personalized advice.

CPFIS offers a wide range of investment options for individuals looking to grow their CPF savings. 

By thoroughly understanding the investment schemes, potential returns, and associated risks, you can make informed decisions about investing your CPF money.

Comparison of CPFIS and SRS

The Central Provident Fund Investment Scheme (CPFIS) and the Supplementary Retirement Scheme (SRS) are two popular investment options in Singapore.

Let’s take a closer look at how they compare.

CPFIS, available to CPF members, allows you to invest your CPF savings for potentially higher returns.

On the other hand, SRS is a voluntary scheme for individuals to save for retirement, offering tax benefits.

When it comes to investment options, CPFIS offers a wide range of products such as unit trusts, stocks, bonds, and exchange-traded funds (ETFs).

Meanwhile, SRS primarily focuses on stocks, bonds, and unit trusts.

In terms of flexibility, CPFIS offers more options for withdrawing your investments.

You can withdraw anytime after reaching 55 years old, subject to the prevailing CPF rules.

SRS, on the other hand, allows withdrawals only upon retirement or at 62 years old, with 50% of the withdrawal subject to tax.

Both CPFIS and SRS have their own merits.

CPFIS provides the benefit of utilizing your CPF savings, while SRS offers tax relief and potentially lower tax rates upon retirement.

It’s important to note that CPFIS investments carry some risks, and it’s wise to understand these risks before investing.

Additionally, the CPF website provides comprehensive information on CPFIS and SRS, helping you make informed decisions.

CPFIS and SRS are valuable tools for retirement planning.

The choice between the two depends on your individual preferences, risk tolerance, and financial goals.

Consider seeking professional advice and conducting thorough research to make the best decision for your future.

Start investing now and make the most of your CPF savings or SRS contributions for a secure retirement.


After exploring the Central Provident Fund Investment Scheme (CPFIS) in Singapore, it is evident that this scheme provides individuals with a unique opportunity to invest their CPF contributions and grow their savings.

Comparison between CPFIS and other investment options

Compared to traditional savings accounts, the CPFIS offers higher interest rates, currently set at 2.5% per annum for Ordinary Account (OA) savings.

This means that individuals can potentially earn higher returns by investing their ordinary account savings through the CPFIS.

When compared to other investment options such as stocks, bonds, and mutual funds, the CPFIS offers a more conservative investment approach.

While investing in the stock market or other financial instruments may provide higher returns, they also come with higher risks.

The CPFIS, on the other hand, offers a safer and more predictable investment option for individuals who prefer a more stable approach to growing their savings.

Key considerations for investing under CPFIS

Before investing under the CPFIS, there are a few key considerations individuals should keep in mind.

Firstly, it is important to understand that CPFIS offers two types of investment schemes – the CPF Investment Scheme – Ordinary Account (CPFIS-OA) and the CPF Investment Scheme – Special Account (CPFIS-SA).

The CPFIS-OA allows individuals to invest their Ordinary Account savings, while the CPFIS-SA allows individuals to invest their Special Account savings.

Secondly, individuals must first open a CPF Investment Account with a participating bank or broker.

DBS is one such bank in Singapore that offers this service.

Opening a CPF Investment Account will allow individuals to start investing their CPF contributions.

Finally, individuals should regularly monitor their CPF Investment Account balance and review their investment performance.

It is essential to stay updated on any changes in the investment landscape and adjust investment strategies accordingly.

Consulting with a financial advisor can provide valuable insights on making informed investment decisions under the CPFIS.

In conclusion, the CPFIS is a valuable investment scheme in Singapore that provides individuals with an opportunity to grow their savings beyond traditional savings accounts.

By investing their CPF contributions, individuals can potentially earn a higher interest of 2.5 per annum and secure their financial future.

However, it is crucial to carefully consider the different investment options under CPFIS and seek professional advice to make informed investment decisions.

Frequently Asked Questions

What is the Central Provident Fund Investment Scheme?

The Central Provident Fund Investment Scheme (CPFIS) is a scheme introduced by the Singapore Government to allow CPF members to invest their CPF savings in various financial instruments.

What are the CPF funds that can be invested?

CPF members can invest their savings in the Ordinary Account (OA), Special Account (SA), and Medisave Account (MA) through the CPFIS. These funds can be invested in a range of approved investment products.

How can I apply for the Central Provident Fund Investment Scheme?

To apply for the CPFIS, you need to have an active CPF account. You can submit an application through the CPF Board or through one of the agent banks, such as DBS Bank Ltd or United Overseas Bank Ltd.

Who are the fund managers for the CPFIS?

The CPF Board has appointed a select group of approved fund managers to manage the CPFIS funds. These fund managers are responsible for investing the CPF savings of members.

What is the risk-free interest rate under the CPFIS?

The risk-free interest rate under the CPFIS is currently set at 2.5% per annum. This means that if you choose not to invest your CPF savings, they will continue to earn an interest of 2.5% per annum.

Can I use my CPF savings to invest in property?

No, the CPFIS does not allow members to use their CPF savings to invest in property directly. However, members can invest in property funds, which are investment products that focus on real estate.

Can I invest in gold through the CPFIS?

Yes, you can invest in gold through the CPFIS. Gold Exchange Traded Funds (ETFs) are approved investment products under the CPFIS, and members can invest in them using their CPF savings.

Are there any limits on investing in gold through the CPFIS?

Yes, there are limits on investing in gold through the CPFIS. The total investment in gold ETFs cannot exceed 10% of your investible savings, and the total investment in gold cannot exceed 10% of your investible savings.

Can I invest in stocks through the CPFIS?

Yes, you can invest in stocks through the CPFIS. You can choose to invest in individual stocks or invest in a diversified portfolio of stocks through approved investment products.

Can I withdraw my CPF savings if I am an undischarged bankrupt?

No, if you are an undischarged bankrupt, you are not eligible to withdraw your CPF savings. Your CPF savings will be retained by the CPF Board until you are discharged from bankruptcy.

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