CPFIS

The CPF Investment Scheme (CPFIS) is a program that allows CPF members to invest their Ordinary Account (OA) and Special Account (SA) savings in approved financial instruments, including unit trusts, shares, bonds, and gold, to potentially earn higher returns than the guaranteed CPF interest rates. However, investing carries risk—you could lose your capital.

For 2026, you can invest OA savings exceeding S$20,000 and SA savings exceeding S$40,000. CPFIS has strict allocation limits: up to 35% of investible OA savings can be invested in stocks, and up to 10% in gold. SA investments are restricted to lower-risk instruments like unit trusts and certain bonds. All CPF investments require completing a mandatory Self-Awareness Questionnaire. While CPF-OA earns a guaranteed 2.5% and SA earns 4.0%, CPFIS allows potential for higher returns—but with market risk. Many financial advisors caution that the guaranteed CPF rates are already competitive risk-free returns.

Real-World Example If Wei has S$60,000 in his OA, his investible amount is S$40,000 (after reserving S$20,000). He can invest up to S$14,000 in approved stocks (35% of S$40,000) and up to S$4,000 in gold (10%). The remaining S$22,000 can be invested in unit trusts or bonds. If his investments underperform and drop 10%, he loses S$4,000—unlike the guaranteed S$1,000/year (2.5%) he'd earn leaving it in OA.