Many people like to use their Medisave savings, whenever they have the opportunity, e.g. to pay the hospital bills or buy expensive medical insurance.
I wish to make this suggestion: if you can afford to pay your hospital bill by cash, it is better to pay cash and keep your Medisave intact.
Your money in the Medisave account will earn interest at 4% plus 1% (for the first $20,000). This is much higher than the interest that you can earn on fixed deposit. It is better to keep your money in Medisave to earn a higher rate of interest.
When your Medisave exceeds the cap, it will be transferred into your special and ordinary account. It can be withdrawn when you reach age 55, if you wish to use the money. If not, you can keep it in the retirement account and earn 4% plus 1%.
Lesson: Keep your money in Medisave to earn a higher rate of interest. Do not withdraw it, unless you have no other way to pay your hospital bills. Do not overspend on your medical insurance.
- ► 2013 (304)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1655)
02/03 - 02/10
- Managing risks
- Managing your personal risk
- Critical illness
- Dance: Giselle in the Park
- ICE - In case of emergency
- Is it necessary to have an adviser?
- A good time to invest in REITs?
- Investing in REITS
- Shopping Mall or MRT station
- Choose a good adviser
- Dividend paid from a Fund
- First Anniversary of this Blog
- Motor insurance claim
- Joke - Make a Will
- Keep invested in STI ETF
- Higher cost of Vivolife
- Future for Financial Advisers
- Medishield: Cheap and Good
- Actuary Joke: Walk half the distance
- Boosting the US economy
- Changes to CPF Investment Scheme
- Agent plays an important role
- Government bonds and endowment
- High cost Endowment Policy - Views
- CDOs being rated downwards
- Bangkok Skywalk
- Target of 1,000 visitors a day
- Invest CPF ordinary account in STI ETF
- Travel by BMW
- Useful information
- High cost Endowment Policy
- Dual currency investment (or deposit)
- Another perspective
- Lower upfront cost
- Minibond Series 35
- REITS with good yield and low price
- Buying a Shield plan
- Higher productivity in insurance sales
- Selecting Blue Chips
- Divident yield on STI Exchange Traded Fund
- Redeem whole life policy?
- Call and Put Options
- Single Premium Endowment
- Questionable sales practices
- Save in a period of inflation
- Use Medisave sparingly
- Medishield and Eldershield
- Savings for the short term and long term
- Impressions of Kuala Lumpur
- ▼ 02/03 - 02/10 (51)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)