31 October 2012
Editor, Voices
Today Paper
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 (www.fisca.sg).
Tan Kin Lian
President
Financial Services Consumer Association
Financial Services Consumer Association
2 comments:
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.
Such simple logic, hope Jeffrey Law finally gets it.
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