How to Invest CPF: Guide to CPF Investment Scheme 2025

Few financial decisions feel as personal as what to do with the money you’ve saved for retirement — and your CPF savings are no exception, especially given the Ordinary Account earns a guaranteed 2.5% per year, leading many Singaporeans to wonder whether they could do better by investing. This guide walks through the CPF Investment Scheme (CPFIS), the step-by-step process to get started, and the trade-offs you need to weigh before committing your savings.

CPF OA interest rate: 2.5% p.a. · CPF SA interest rate: 4.08% p.a. · Minimum OA before investing: S$20,000 · Minimum SA before investing: S$40,000 · Agent banks offering CPFIS accounts: 3 (DBS, OCBC, UOB)

CPFIS has been around since 1997, and these are its key parameters.

Can I invest my CPF savings? Understanding CPFIS eligibility

Before you can invest, you need to know whether you qualify. The CPF Investment Scheme (CPFIS) is open to members who are at least 18 years old and not an undischarged bankrupt, according to MoneySmart.

What is the CPF Investment Scheme?

CPFIS lets eligible members invest their Ordinary Account (OA) and Special Account (SA) savings in approved products to seek potentially higher returns than the guaranteed interest rates. The scheme is administered by the CPF Board and offered through three agent banks: DBS, OCBC, and UOB (StashAway).

How much CPF do I need before I can invest?

The rules are straightforward: you must have more than S$20,000 in your OA and more than S$40,000 in your SA before you can invest from that account. Only the amount above these minimums is considered investible savings (MoneySmart).

Which CPF accounts can be used for investing?

Only OA and SA savings are eligible for CPFIS. Medisave Account (MA) and Retirement Account (RA) savings cannot be invested under the scheme. Additionally, new CPFIS investors must complete the Self-Awareness Questionnaire (SAQ), which was introduced on 1 October 2018 (Endowus).

The implication: eligibility gates protect your base but limit how much you can put to work.

How to open a CPF investment account (step-by-step)

Once you’re eligible, the next step is opening a CPF Investment Account (CPFIA). Here’s how it works for OA.

How do I get a CPF investment account?

For CPFIS-OA, you need to open a CPF Investment Account with one of the three agent banks: DBS, OCBC, or UOB. The account is free to open and can be done online (Income Insurance). For CPFIS-SA, no CPFIA is required — you can approach product providers directly (SG Budget Babe).

How to open a CPF investment account with DBS/POSB

DBS, one of the agent banks, offers online application for the CPF Investment Account. After opening, you’ll need to link it to a brokerage account to execute trades. According to SG Budget Babe, a common workflow is: open CPFIA → complete SAQ → open a brokerage account (e.g., POEMS) → transfer funds and trade.

Can I open a CPF investment account online?

Yes, all three agent banks support online applications. You can also log in to your CPF account via Singpass to access the Investment dashboard and check your status (CPF Board). The entire process typically takes a few days.

What this means: the account setup is frictionless, but the real work lies ahead.

How to earn 6% interest on your CPF savings

Many Singaporeans aim for the 6% effective rate on the first S$60,000 of combined CPF balances. Here’s how it works.

What are the CPF interest rates?

As of 2025, the CPF OA earns 2.5% per annum, while the SA and Medisave Account earn 4.08% per annum, confirmed by MoneySmart. These rates are reviewed quarterly and are guaranteed by the government.

How much is CPF yearly interest?

The yearly interest depends on your balances. For example, S$100,000 in OA earns S$2,500 per year at 2.5%. In SA, the same amount earns S$4,080 per year at 4.08%. The interest is credited to your accounts annually.

How does the extra interest on the first S$60,000 work?

The CPF Board pays an extra 1% interest on the first S$60,000 of combined balances, with up to S$20,000 from OA. If you have a high SA balance, the effective rate on that portion can reach up to 6% per annum. This makes leaving savings in CPF very attractive compared to many low-risk investments.

The catch: the 6% sweet spot creates a strong incentive to stay put before taking risks.

Is CPF investment safe? Weighing risks and returns

The safety of CPF investment depends on what you buy and how much you’re willing to lose.

Is CPF investment safe?

CPFIS investments are not guaranteed by the government. You can lose capital, especially in stocks and ETFs. Income Insurance notes that while some products like Singapore Government Securities and Treasury Bills are very low risk, shares and unit trusts carry market risk.

Should you invest your CPF savings with CPFIS?

The decision comes down to risk appetite. If you prefer guaranteed returns, leaving money in CPF — especially the first S$60,000 earning up to 6% — is hard to beat. But for long-term growth, investing in a diversified portfolio of ETFs could outperform the CPF rate, though with volatility. StashAway points out that robo-advisers like Endowus offer CPFIS access, making it easier for hands-off investors.

What are the risks of investing CPF money?

• Capital loss — you could get back less than you invested.
• Opportunity cost — the amount invested no longer earns the guaranteed CPF interest.
• Limited liquidity — you must sell investments and return proceeds to CPF before withdrawing at retirement.

Three account types, one key distinction: OA offers a wider menu but also higher risk, while SA is strictly for low-risk products.

The pattern is clear: OA allows riskier assets like stocks and gold, while SA’s stricter limits protect its role as a retirement savings buffer.

What can I invest my CPF in? (gold, S&P 500, and more)

The CPFIS product menu is broad for OA and narrow for SA. Here are the specifics for popular asset classes.

Can I invest my CPF in gold?

Yes, CPFIS-OA allows gold investments through approved gold ETFs and gold savings accounts, up to 10% of investible savings (StashAway). SA cannot invest in gold.

How can I invest my CPF OA in the S&P 500?

You can gain S&P 500 exposure through SGX-listed ETFs that track the index, such as the SPDR S&P 500 ETF, using your CPFIS-OA account (Endowus). Unit trusts that replicate the S&P 500 are also available.

What are the investment products available for CPF SA?

CPFIS-SA is restricted to low-risk products: Singapore Government Securities (SGS and T-bills), lower-risk unit trusts, annuity plans, and endowment policies (Income Insurance). Shares, ETFs, and gold are not allowed.

Step-by-step: How to invest your CPF savings

1. Check eligibility: Ensure you are 18+, not bankrupt, and have OA > S$20k or SA > S$40k.
2. Complete the Self-Awareness Questionnaire (SAQ) via CPF online services (MoneySmart).
3. Open a CPF Investment Account with DBS, OCBC, or UOB (for OA). For SA, skip this step.
4. Link to a brokerage account (e.g., POEMS, DBS Vickers, or a robo-adviser like Endowus).
5. Choose your investment product — ensure it is CPFIS-approved.
6. Execute the trade using CPF as the funding source.

What’s confirmed and what’s unclear about CPFIS

Perspectives on CPF investing

“The CPF Investment Scheme is designed to give members an opportunity to earn potentially higher returns on their CPF savings, while ensuring they maintain a basic safety net.”

— CPF Board (official website)

“Opening a CPF Investment Account with DBS is straightforward — you can do it online in minutes. But the real work starts when you decide what to invest in.”

— DBS website (CPF Investment Account page)

“Don’t just pick a product because your friend recommends it. Use CPFIS to invest in something you understand, and always think about the CPF interest you’re giving up.”

— Reddit user r/singaporefi

What this means for your retirement

The choice between guaranteed CPF interest and the potential of market returns is a deeply personal one. For most Singaporeans, the safest strategy is to max out the first S$60,000 at up to 6% before even considering CPFIS. For the remaining balance, a low-cost diversified ETF or a robo-adviser can be a sensible way to aim for higher long-term growth — but only if you’re comfortable with short-term losses. The trade-off is clear: security versus opportunity. Know which matters more to you.

Related reading: Singapore CPF New Investment Scheme – What You Need to Know

Frequently asked questions