Sunday, November 04, 2012

Keep Medisave for the future use

31 October 2012

Editor, Voices
Today Paper

Jeffrey Law has suggested that Medisave be allowed to be used
for basic dental services at private clinics (Today, 31 Oct).

While I recognize that some people do not have savings to pay for 
these basic services, I wish to encourage the public to avoid using 
Medisave for small payments. Each withdrawal incurs an administrative 
charge of $3. 

The Medisave account can earn an attractive interest rate of 4% 
per annum, much better than the meager interest that they can earn 
on other savings. Most people will need their Medisave savings to pay 
their medical bills when they are get old, so it is best to keep the savings 
intact, where possible. 

The public should set aside some savings from their regular earnings 
to meet unexpected payments and emergencies, such as medical 
and dental treatment. 

They should attend the financial planning talks organised by the Financial 
Services Consumer Association (

Tan Kin Lian
Financial Services Consumer Association


CreateWealth8888 said...

Totally agreed with your view.

We should avoid using our Medisave and let it to earn compound interest @4% in MA till when it becomes financially necessary to spend it.

It is very hard to find almost risk-free compounded returns of 4% p.a.

yujuan said...

Such simple logic, hope Jeffrey Law finally gets it.

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