Haziq Salleh, 32, is a data analyst earning $6,000 a month. He has $50,000 in his Ordinary Account and $45,000 in his Special Account, and he and his fiancée plan to apply for a flat in two years. At a bank appointment, a relationship manager suggests putting $30,000 of his Ordinary Account into a unit trust under the CPF Investment Scheme (CPFIS).
The Ordinary Account pays 2.5% a year, set by law, whatever the market does. Special Account savings earn at least 4% a year, a floor the Government has extended to 31 December 2027. A CPFIS investment gives up that interest, so it has to beat it after every fee.
Left in the Ordinary Account, Haziq's $30,000 earns $30,000 × 2.5% = $750 a year with no risk. In a unit trust held through a wrap account, it needs 3.25% to 4.65% a year before costs to match that, depending on the fund's fees. The sections below follow his decision through who can invest, how much, the fees and the return each account's money needs to beat.
What Is CPFIS?
The CPF Board (checked 27 September 2026) runs CPFIS in two parts. CPFIS-OA covers Ordinary Account savings and CPFIS-SA covers Special Account savings. According to the CPF Board, members held $21.4 billion of Ordinary and Special Account savings in CPFIS investments as of 30 September 2025.
To invest Ordinary Account savings, a member opens a CPF Investment Account with one of three agent banks, DBS, OCBC or UOB. Special Account savings need no such account, and members buy directly from the product providers. Eligible products include:
- Unit trusts
- Shares
- Bonds
- Exchange-traded funds
- Treasury Bills
- Gold products
Can Haziq Invest Under CPFIS?
A CPF member can invest under CPFIS if they:
- are at least 18 years old
- are not an undischarged bankrupt
- have more than $20,000 in the Ordinary Account, more than $40,000 in the Special Account, or both
- have completed the CPFIS Self-Awareness Questionnaire
Haziq is 32 and has more than the minimum in both accounts. Once he completes the questionnaire, he can invest from either account.
How Much Of His Savings Can He Invest?
| Account | Must stay in the account | Other limits |
|---|---|---|
| Ordinary Account | First $20,000 | Up to 35% of investible savings in stocks, up to 10% in gold |
| Special Account | First $40,000 | Lower-risk products only |
Source: CPF Board
Investible savings are the Ordinary Account balance plus the CPF savings already withdrawn for investment and education. Haziq has withdrawn nothing, so his investible savings are $50,000 and he can invest $30,000 of it, keeping the first $20,000 in the account. At most 35% × $50,000 = $17,500 could go into stocks. In the Special Account, he can invest the $5,000 above the $40,000 floor.
The CPF Board (checked 27 September 2026) links the floors to extra interest. Members below 55 earn an extra 1% a year on the first $60,000 of their combined balances, with at most $20,000 from the Ordinary Account. The $20,000 and $40,000 floors keep that $60,000 in the accounts.
Read Also: CPF Accounts Explained: OA, SA, MediSave And RA In 2026
What Would The Unit Trust Cost Him?
The CPF Board has removed sales charges on CPFIS unit trusts and lowered the caps on expense ratios and wrap fees. Its published fee caps are below.
| Fee | Cap or estimated cost | Charged on |
|---|---|---|
| Wrap fee | Up to 0.4% a year | Fund portfolio value |
| Total expense ratio | 0.35% to 1.75% a year, by fund risk category | Fund net asset value |
| Broker's commission | 0.25% to 0.28% of the trade, minimum $25 a transaction | Shares, REITs, ETFs, bonds, Treasury Bills |
Source: CPF Board
The unit trust the bank suggested is held in a wrap account, so it costs Haziq every year, at up to 1.75% + 0.4% = 2.15% a year at the highest caps. On $30,000, that is $30,000 × 2.15% = $645 a year. A $30,000 purchase of an exchange-traded fund at 0.25% would cost $30,000 × 0.25% = $75 in commission, and the same again to sell, which is a small cost per year over a long holding.
What Return Does His $30,000 Need To Beat?
An investment has to earn more than $750 a year after fees before CPFIS adds anything to Haziq's Ordinary Account.
| $30,000 invested from the Ordinary Account (Haziq) | Annual costs | Return needed before costs | Amount needed a year |
|---|---|---|---|
| Left in the Ordinary Account | None | 2.5% (paid by CPF) | $750 |
| Unit trust at the lowest expense cap, in a wrap account | 0.35% + 0.4% = 0.75% | 3.25% | $975 |
| Unit trust at the highest expense cap, in a wrap account | 1.75% + 0.4% = 2.15% | 4.65% | $1,395 |
Source: CPF Board
The figures ignore compounding and treat the fee caps as the actual fees, so they are estimates. Haziq's money also has a two-year horizon, since it is set aside for his flat, and a market fall in that time could leave him selling below cost.
His colleague Shalini, 41, shows the other case. She owns her flat outright and does not expect to touch her Ordinary Account for twenty years. A low-fee diversified equity fund held that long has to earn a little above 2.5% before fees. She also has far more time to recover from a fall.
Read Also: How Investment Income Is Taxed In Singapore In 2026
Should He Invest His Special Account Money?
Haziq could invest $5,000 under CPFIS-SA. Below 55, it earns at least 4% a year, and CPFIS-SA only allows lower-risk products. An investment that has to beat 4% after fees, in restricted products, over a period the member does not control, is a poor bet for most members.
The same $30,000 in the Special Account would earn $30,000 × 4% = $1,200 a year. On Haziq's $5,000, the figure is $5,000 × 4% = $200 a year, and a lower-risk product would need to return more than 4% plus its fees to match it.
What Happens To CPFIS Investments At 55?
The Special Account closed for members aged 55 and above in January 2025, so CPFIS-SA is closed to them. If a member bought Special Account investments before 55 and sells them afterwards, the proceeds go to the Retirement Account if the member has not met the Full Retirement Sum, and to the Ordinary Account if they have.
According to the CPF Board (checked 27 September 2026), members who have set aside the Full Retirement Sum can withdraw their CPFIS-OA and CPFIS-SA investments. The Board transfers the holdings to the member without selling them.
When a member sells a CPFIS investment, the proceeds go back under the rules of the account that paid for it. Investing changes the return and the risk. The rules on when the money can be withdrawn, and what for, stay the same.
Read Also: See Your CPF Balances Alongside Your Retirement Plan In Cashmere Pocket
Does Haziq Invest?
Haziq leaves the $30,000 in his Ordinary Account, where it earns $750 a year, or about $1,500 over the two years before he applies for the flat. He also leaves his Special Account untouched at 4%, and plans to look at a low-cost fund again once the flat purchase is settled.
CPFIS suits members with:
- Ordinary Account savings well above $20,000
- A horizon of ten years or more
- No plan to use the money for a home soon
Members who may need the money for housing, or who would sell in a market fall, are better served by the guaranteed 2.5% and 4%. The CPF Board itself advises members to invest only if they are confident of earning more than CPF interest, and that confidence depends on each member's costs, horizon and risk tolerance.