SG Investor Hub Blog

Here are the top 3 Singapore blue chip stocks that earned the highest return over the past decade

In our previous article on Singapore blue chip stocks, we covered the pros and cons of investing in Singapore blue chips and a general overview of how they have performed over the past decade. In this article, we will look at the three best-performing Singapore blue chips over the past decade (2010-2019) and identify the […]

The post Here are the top 3 Singapore blue chip stocks that earned the highest return over the past decade appeared first on The Fifth Person.

Get Additional Cashback With UOB One Card During Circuit Breaker

Back in 2018, Heartland Boy had previously written an article on how to maximise the cashback on the UOB One Credit Card. And that was before the crazy period of double-dipping with the GrabPay wallet- a strategy touted endlessly on forums. When top-ups made to the Grab wallet was eventually nerfed, it made some cardholders […]

The post Get Additional Cashback With UOB One Card During Circuit Breaker appeared first on Heartland Boy.

CPF Account Effective Interest Rates

Is it always good to have a lot of money in your CPF?
Maybe, maybe not!

As the amount of money in your CPF account increases, the amount of interest you get from CPF increases.
However, the effective interest rates you are getting from CPF also decreases.

What is Effective Interest Rates?
Effective Interest Rates (EIR) is the total interest you are paid on the total amount of money you have.
Eg: Total CPF Interest for the year divided by your total CPF balance (express in percentage).

For money in your Special, Medisave & Retirement Account (SMRA),
a) each account will earn a 4% interest on its money
b) first $60,000 will earn an extra 1% interest
c) those age 55 & above will earn an extra 1% interest on the first $30,000

Below is how the interest curve will look like


Before age 55

The first $60,000 in your CPF will earn an interest of 5% (excluding Ordinary Account)
The rest of the money in your CPF SMRA will earn 4% interest.
Because the first $60,000 is earning an extra 1%, your effective interest rate on your CPF will always be above 4%.
However, the effective rate will keep decreasing to close to 4% as your SMRA grows larger.


Recommended Read: What Happens After I Join A CPF LIFE Plan?


After Age 55

The first $30,000 in your CPF will earn an interest of 6% (excluding OA)
The next $30,000 in your CPF will earn an interest of 5% (excluding OA)
The rest of the money in your CPF SMRA will earn 4% interest.
Because the first $30,000 is earning an extra 2% while the next $30,000 is earning an extra 1%, your effective interest rate on your CPF will always be above 4%.
However, the effective rate will keep decreasing to close to 4% as your SMRA grows larger.


CPF Ordinary Account Bonus Interest
PS: It is actually more complex than this because there is an Ordinary Account section that also earns this extra 1%.
We are unable to however show the graphical relationship because adding in OA would make the whole picture harder to understand

So we included an image from CPF below to make it clearer 😉.

Source: CPF


Recommended Read: Why You Should Hate Whole Life Insurance

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AEM share price to sink or swim with Huawei ban?

Sign up & unlock articles! The recent explosive bull run of AEM share price had led to a flurry of target price upgrades by various analysts. The surging form of AEM share price was attributed to the stellar first quarter business results that saw the company hitting a record revenue of $146.8 million and net profit of $36.1 million.

Indeed, the rate of ascend of AEM share price is so breath-taking that investors must be pinching themselves to check it is for real. Is this form even sustainable against the backdrop of COVID-19 pandemic and rising tension between US and China? Will the unfolding trade war between US and China throws a spanner in the works for AEM share price?

AEM share price

To be sure, the recent US rule to ban Huawei Technologies’ access to non-US chipmakers will have some impact on AEM share price. But make no mistake, this is actually the second phase of the trade war concerning export control on Huawei.

AEM share price to hit $50 on NASDAQ listing?

AEM share price in explosive bull run!

In May 2019, US banned US chipmakers from selling equipment to Huawei. Intel was one of the companies hit by that move. …

The post AEM share price to sink or swim with Huawei ban? appeared first on SG Wealth Builder.