Sunday, February 03, 2008

Medisave

Medisave is a sub-account in your CPF account. Workers up to 35 years contribute 6.5% of their wages into the Medisave account (subject to a limit). Older workers contribute a higher porportion of their wages. The balance in the Medisave account earns interest at 4% (plus 1% bonus, subject to a cap).

The Medisave account can be used for paying hospital bills, certain outpatient expenses and for medical insurance.

2 comments:

Unknown said...

Sir,

Extracted from the CPF website => "In addition, an extra 1% of interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA."

It's not first $20k will earn 1% more. Pls re confirm.

Tan Kin Lian said...

Dear Benjamin,

You are right. I have corrected my posting. Thanks for pointing it out.

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