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.
Sir,
ReplyDeleteExtracted 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.
Dear Benjamin,
ReplyDeleteYou are right. I have corrected my posting. Thanks for pointing it out.