The Central Provident Fund (CPF) is a mandatory savings scheme in Singapore that is intended to provide retirement, healthcare, and home ownership benefits for its citizens. Every working individual in Singapore is required to contribute a portion of their monthly income to their CPF account, which is managed by the CPF Board.
There are three main types of CPF accounts – the Ordinary Account (OA), Special Account (SA), and Medisave Account (MA). The OA is primarily used for housing expenses, such as buying property or servicing a home loan. The SA is meant for retirement savings and has a higher interest rate than the OA. The MA, as the name suggests, is for medical expenses and can also be used to purchase certain types of insurance related to healthcare. Understanding the different CPF accounts and how they can be used is crucial for financial planning and ensuring a secure future.