The CPF account used for housing, education, investments, and insurance. Earns 2.5% guaranteed interest (with an extra 1% on the first S$20,000). Most HDB and bank-loan mortgages are paid from OA.
The Ordinary Account is the most-used of your four CPF accounts. It funds housing, education, approved investments, and selected insurance premiums.
OA earns a guaranteed 2.5% interest per annum, with an extra 1% on the first S$20,000 (combined with other CPF balances). The rate is reviewed quarterly but has been stable since the 1990s.
For employees under 35, ~62% of each month's CPF contribution flows into OA. This share steps down with age — by 50, OA receives ~37% while SA and MA take larger shares.
The Ordinary Wage ceiling caps monthly contributions on the first S$7,400 of wages (S$8,000 from 2026). Annual contributions are also capped via the Additional Wage ceiling.
Housing: downpayment and monthly instalments for HDB flats or private property. Both HDB concessionary and bank loans can be paid from OA.
Education: pay your own, your child's, or your spouse's tuition fees at approved institutions. Must be repaid into CPF with interest after graduation.
Investments: CPF Investment Scheme (CPFIS-OA) allows investing OA above the first S$20,000 into approved unit trusts, ETFs, shares, and gold.
Insurance: Dependants' Protection Scheme, MediShield Life (top-up only), Home Protection Scheme premiums.
Use it for property: most Singaporeans tap OA aggressively for housing. The trade-off is forgoing 2.5% guaranteed compounding and triggering 'accrued interest' that must be returned to CPF on sale.
Transfer to SA: irreversible. Moves money from 2.5% to 4% guaranteed. Smart for those building retirement income who don't need OA for housing.
Invest via CPFIS: historically, most CPFIS-OA investors underperformed the 2.5% benchmark after fees. The bar is higher than it looks; broad ETFs with low expense ratios are the safer choice.
The CPF account used for housing, education, investments, and selected insurance premiums. It earns 2.5% guaranteed interest (with an extra 1% on the first S$20,000 combined balance). Most working Singaporeans tap OA heavily for HDB or condo mortgage payments.
Housing (downpayment and monthly mortgage), education at approved institutions (subject to repayment with interest), CPFIS-approved investments after the first S$20k, and certain insurance premiums (Dependants' Protection, Home Protection, MediShield Life top-up).
It's irreversible but immediately upgrades the return from 2.5% to 4%. Best done in your 30s – 40s if you don't need that OA for housing. The trade-off is permanent lockup in retirement-account land.
About 62% for employees under 35. The share steps down with age — by 50 it's ~37%. The remainder goes to SA and MA, with allocation tilting toward retirement saving as you age.