CPF Ordinary Account (OA)

The Central Provident Fund (CPF) Ordinary Account holds a significant role in Singapore’s social security system, serving as a linchpin for citizens’ financial well-being.
In this article, we will unravel the intricacies of the CPF Ordinary Account and underscore its importance on how it benefits Singaporeans. Understanding the CPF Ordinary Account will empower Singapore residents to make informed decisions on their present and future financial plans.


The CPF Ordinary Account is one of three accounts within the CPF framework, alongside the Special Account (SA) and the Medisave Account (MA). Established to ensure long-term financial security, the Ordinary Account primarily addresses housing, education, investment, and insurance needs of CPF members.

Contributions to the CPF, from both employees and employers (typically 20% of income from employee’s own salary; plus 17% employer contribution of employee’s salary), are channelled into the Ordinary Account, forming a crucial part of the overall CPF structure. The allocation of funds across the Ordinary Account, Special Account, and Medisave Account reflects a balanced approach to achieving diverse financial goals.

A substantial portion of the CPF Ordinary Account is designated for housing-related expenses, enabling members to finance home purchases, settle housing loans, and meet mortgage insurance premiums through the Home Protection Scheme (HPS).

In addition to housing, the Ordinary Account provides flexibility for educational pursuits and investment opportunities. Members can use their savings for personal or dependent education, including tertiary studies, and explore various investment instruments to grow their wealth.

The CPF Ordinary Account not only serves as a repository for funds but also offers competitive returns. Interest rates, reviewed quarterly, remain competitive in comparison to similar instruments in the market, ensuring reasonable returns for CPF members.

As individuals progress through life, the Ordinary Account continues to play a pivotal role. Funds become accessible for approved purposes such as home purchase, education, and investment. Crucially, as retirement approaches, the Ordinary Account transforms into a key source of income, providing monthly payouts to sustain a comfortable lifestyle during the retirement years.

The CPF Ordinary Account exemplifies Singapore’s commitment to fostering financial resilience among its citizens. From housing and education to investment and retirement planning, this multifaceted account offers a comprehensive solution for individuals navigating different stages of life.


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