Chronology of CPF Interest Rate

[makapaaa]

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Joined: 05 Apr 2010
Posts: 2240

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[TD="width: 100%"]Posted: Mon Aug 29, 2011 8:40 pm Post subject: President Tony Tan - pls don't reduce our CPF interest rate[/TD]
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[TD="colspan: 2"]Our CPF interet rate is pathetic enough already at 2.5% and 4% .

As the EX- executive director of GIC , please maintain or raise our interest rate in CPF ......

Compared to our neigbour's EPF in Malaysia ; since many many years ago , their interest rate had never fall to 4% before ...

We are already at a miserable 2.5 and 4% range ...

See their achievement :

1995 : 7.5%

1996 : 7.7%

1997 to 1998 : 6.7%

1999 : 6.84%

2000 : 6%

2001 : 5%

2002 : 4.25%

2003 : 4.5%

2004 : 4.75%

2005 : 5%

2006 : 5.15%

2007 : 5.8%

2008 : 4.5%

2009 : 5.65%

2010 : 5.8%



THEIR INTEREST RETURN IS STEADILY INCREASE OVER THE YEARS .. OUR LOUSY CPF IS STILL GOING TO CUT TO A MERE 2.5% NEXT YEAR


WHAT IS THIS ? WE CANNOT MAKE IT AH ?[/TD]
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[LeMans2011]

This you need to look at it in context of the bank interest rate in the country. In MY Fixed Deposit pays more than 3% interest whereas in SG it is close to zero.

 

[eErotica69]

In 1995, the exchange rate between S$ and RM was S$1 : RM 1.4.

Today is S$1: RM2.47!!!

 

[Devil Within]

PAP gov is stealing our money and the 60% daft Singaporeans still doesn't realise that. If saving interest rate is lower than inflation rate, that means the purchasing power or the value of the money you are saving in banks or CPF, is going down. Meaning, the longer you keep it in the banks or CPF, the less worth it'll become. So who gains from these difference? The group that controls the issuing of fiat money, ie MAS or Singapore gov. Inflation is hidden taxation. You are being taxed without knowing. Think about it!

 

[eErotica69]

PAP gov is stealing our money and the 60% daft Singaporeans still doesn't realise that. If saving interest rate is lower than inflation rate, that means the purchasing power or the value of the money you are saving in banks or CPF, is going down. Meaning, the longer you keep it in the banks or CPF, the less worth it'll become. So who gains from these difference? The group that controls the issuing of fiat money, ie MAS or Singapore gov. Inflation is hidden taxation. You are being taxed without knowing. Think about it!

But the market interest vs inflation is also the same! So you put money into UOB or OCBC and they pay you 0.1% interest vs inflation 4%, so they are stealing your money also?

I believe inflation vs interest in most country are similar situation, in view of low interest rate environment!

US interest rate is 1% and inflation is 3.5%. Worst US$ is depreciating. So US Government stealing from its people also?

 

[Devil Within]

But the market interest vs inflation is also the same! So you put money into UOB or OCBC and they pay you 0.1% interest vs inflation 4%, so they are stealing your money also?

I believe inflation vs interest in most country are similar situation, in view of low interest rate environment!

US interest rate is 1% and inflation is 3.5%. Worst US$ is depreciating. So US Government stealing from its people also?

Correct me if I am wrong, I think previously Singapore banks' saving interest rate takes the cue from CPF interest rate or MAS guideline.

Yes, if banks's saving rate is 0.1% and inflation is 4%, then banks are stealing the value of your money as the longer you put in there, the less worth it will become and banks charge and make the interest from loans they provide. Example, they charge those getting loans from banks at 5% while they pay you 0.1% for putting your money with them. They make 4.9% with your money. Also note that banks charge interest way above inflation rate.

Also right now, US Fed interest rate, or the rate Fed lends to US gov and banks is less than 1%. It is 0.25 of a percent, almost 0%.

 

[Devil Within]

Also to add is that in banks, we can choose to spend or invest our money elsewhere if the banks do not give us higher interest to fight inflation. However, if our money is with CPF, we can't do anything if the interest paid is lower than inflation. In other words, CPF is stealing our money worth if the interest paid is not kept up to par with inflation rate.

 

[shelltox]

take out your cpf and you deposit it in some hole immediately.
how many people really know how to invest and made money,#
singaporeans knew how to gamble and they think that is investing

 

[steffychun]

Copy Gopalan and migrate to America? There there's no CPF--but tax rate isnt that great