If you have not yet hit the BHS,doing a voluntary cash top up to your MediSave Account provides two benefits: Benefit 1:Enjoy a risk-free 4% p.a. interest rate on your MA savings Benefit 2:Income tax relief at your marginal tax rate (see below table) Do notethat for the income ta...
Once your RA is formed, the RSTU switches to RA and the limit is extended to ERS, which you can also do immediately in cash if you don’t care about the tax relief. Some parents are even topping up their child’s CPF to the FRS maximum because the rates are so good. However ...