What Does It Mean?
CPF Ordinary Account (OA)
CPF Ordinary Account (OA) savings can be used to purchase residential property in Singapore, subject to withdrawal limits. For private property, CPF usage is capped at the Valuation Limit (VL). For HDB, CPF can cover the full purchase price including stamp duties.
CPF Accrued Interest
CPF accrued interest is the interest that would have been earned on CPF funds used for property purchase, had the money remained in the CPF OA (currently 2.5% per annum). This amount must be refunded to CPF when the property is sold.
How Is It Calculated?
CPF Ordinary Account (OA)
For HDB, CPF can cover the full purchase price plus stamp duties. For private, usage is capped at the VL.
CPF Accrued Interest
The 2.5% interest compounds annually. After 10 years, $200,000 of CPF used accumulates ~$56,000 in accrued interest.
Worked Example
CPF OA usage for a $1,500,000 private condo (first property):
If you use $300,000 from CPF OA and sell after 10 years, you must refund $300,000 plus approximately $84,000 in accrued interest back to your CPF OA.
Why It Matters
CPF accrued interest is an often-overlooked cost that grows significantly over time. After 20 years, $300,000 of CPF used accumulates over $200,000 in accrued interest at 2.5% per annum.
Where to Find This on ShiokNest
- CPF Usage Optimizer Calculator
Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.
Official Sources
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Frequently Asked Questions
What is the CPF Valuation Limit?
Do I need to refund CPF accrued interest if I never sell?
This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of March 2026. Check official sources for the latest.