CPFIS (CPF Investment Scheme) Singapore
Using Your CPF Ordinary and Special Account Savings to Invest Beyond the Default Interest Rate
The CPF Investment Scheme (CPFIS) allows Singaporeans to invest a portion of their CPF Ordinary Account and Special Account savings — above a protected minimum — into approved unit trusts, stocks, ETFs, bonds, and insurance products, aiming to earn returns above the default CPF interest rates, though doing so means giving up a guaranteed, risk-free rate for a potentially higher but uncertain one.
Not financial advice. All figures for educational reference only. Data as at October 2026.
Last updated: October 2026
Key Takeaways
- CPFIS has two tracks: CPFIS-OA (using Ordinary Account savings, with a wider range of approved investments) and CPFIS-SA (using Special Account savings, limited to lower-risk products given the SA’s role in retirement funding).
- CPF OA earns a guaranteed 2.5% per year (as a floor) while CPF SA earns up to 4%+ depending on prevailing rates — any CPFIS investment needs to beat these guaranteed, risk-free benchmarks after fees to be worthwhile.
- To use CPFIS-OA, you must first set aside $20,000 in your OA before investing the excess; for CPFIS-SA, the first $40,000 in your combined OA and SA must be set aside first.
- Approved CPFIS investments include CPF-included unit trusts, CPFIS-included ETFs (such as certain STI and bond ETFs), Singapore Government Securities, corporate bonds, and selected insurance endowment or investment-linked products — each requires checking the official CPFIS Included Investment list.
- MAS and CPF Board data has repeatedly shown that a meaningful proportion of CPFIS investors underperform the CPF OA’s guaranteed 2.5% return after accounting for fees and poor fund selection, making the decision to invest CPF savings one that should not be taken lightly.
What Is the CPF Investment Scheme (CPFIS)?
The CPF Investment Scheme is a facility that lets CPF members redirect a portion of their Ordinary Account (OA) and Special Account (SA) savings — above mandated minimum thresholds that must remain untouched — into a defined list of approved investment products, rather than leaving all those savings earning CPF’s default guaranteed interest rates. The underlying motivation is straightforward: CPF OA guarantees a floor of 2.5% per year and SA earns a higher rate (often above 4%, pegged to a formula tied to government bond yields with a legislated minimum), and some members believe they can achieve better long-term returns by investing part of these savings in equities, bonds, or other instruments through CPFIS.
CPFIS is split into two distinct schemes with different risk tolerances built into their rules. CPFIS-OA allows investment in a broader range of products, including CPFIS-included unit trusts, stocks, ETFs, and bonds, reflecting the OA’s more flexible usage (it can also be used for housing and education). CPFIS-SA is considerably more restrictive, limited mainly to lower-risk products like CPFIS-included unit trusts and bonds, in keeping with the Special Account’s singular purpose as a retirement savings pillar that CPF rules protect more conservatively.
Before any CPFIS investment is permitted, CPF rules require members to first set aside a protected minimum: $20,000 in the OA for CPFIS-OA, and a combined $40,000 across OA and SA before CPFIS-SA investing is allowed. This ensures a baseline of guaranteed, risk-free CPF savings remains untouched regardless of how any CPFIS investments perform.
How Does CPFIS Work in Practice?
To invest via CPFIS, a CPF member must first open a CPFIS Investment Account with one of three agent banks — DBS, OCBC, or UOB — which acts as the administrative conduit between the CPF Board and the investment. From there, the member can select from the official CPFIS Included Investment list, which the CPF Board updates periodically and which excludes products deemed too high-risk or insufficiently liquid for retirement savings.
A critical, often underappreciated detail: CPFIS investment performance is frequently published by CPF Board and MAS-linked studies, and historically a substantial share of CPFIS investors — in some reporting periods, more than half — have earned returns below the OA’s guaranteed 2.5%, after accounting for sales charges, management fees, and poor fund timing. This statistic is central to why many financial advisers urge caution before using CPFIS, emphasising that the guaranteed, risk-free CPF rate is a genuinely high hurdle to beat consistently after costs.
CPFIS Example
Suppose a CPF member has $50,000 in their OA. After setting aside the protected $20,000 minimum, $30,000 is eligible for CPFIS-OA investment. If left in the OA, this $30,000 would earn a guaranteed 2.5% a year, growing to roughly $34,440 after 3 years with no risk. If instead invested in a CPFIS-included global equity unit trust charging a 1.5% annual fee, the member needs the fund to deliver gross returns comfortably above 4% a year just to match the guaranteed OA alternative after fees — and if the fund delivers only 3% gross (1.5% net after fees), the member would end up with roughly $27,590 after 3 years in nominal cash value terms before further compounding, a worse outcome than simply leaving the money in OA.
This example illustrates why CPFIS investing is best suited to members with a long time horizon (reducing the impact of short-term volatility), a clear understanding of the fund’s fee structure, and realistic expectations about whether their chosen investment can durably beat CPF’s guaranteed, government-backed rate after all costs — rather than investing simply because the option exists.
Advantages of Using CPFIS
Potential for higher long-term returns. Equities and growth-oriented funds have historically outperformed CPF’s guaranteed rates over long horizons, though with meaningfully more volatility and risk of underperformance in any given period.
Greater control over a portion of retirement savings. CPFIS gives members agency to actively manage part of their CPF savings rather than being limited entirely to default interest rates.
Access to a curated, vetted investment list. The CPF Board’s Included Investment list filters out excessively risky or illiquid products, providing a layer of protection compared to unrestricted investing.
Diversification across asset classes. CPFIS allows exposure to equities, bonds, and other asset classes beyond CPF’s own fixed-rate accounts, which can suit a member’s broader retirement asset allocation strategy.
Risks and Limitations
CPF’s guaranteed rates are a genuinely high hurdle. Beating a risk-free 2.5%–4%+ consistently after fees is harder than it sounds, and historical data shows many CPFIS investors fail to do so.
Fees compound against CPFIS investors. Sales charges and annual management fees on CPFIS-included unit trusts directly reduce the margin available to beat the guaranteed alternative.
Reduced retirement savings certainty. Money moved into CPFIS investments loses the absolute capital guarantee that CPF’s own interest-bearing accounts provide, introducing genuine risk to retirement funds.
Requires ongoing monitoring. Unlike leaving money in CPF accounts, which requires no active management, CPFIS investments need periodic review to ensure they remain aligned with retirement goals and are not quietly underperforming.
Limited product menu. The CPFIS Included Investment list, while vetted for safety, is narrower than the full universe of investment options available through a standard cash brokerage account.
CPFIS-OA vs CPFIS-SA
| Factor | CPFIS-OA | CPFIS-SA |
|---|---|---|
| Source account | CPF Ordinary Account | CPF Special Account |
| Minimum set-aside before investing | $20,000 in OA | $40,000 combined OA + SA |
| Approved investment range | Broader — stocks, ETFs, unit trusts, bonds, insurance | Narrower — mainly lower-risk unit trusts and bonds |
| Guaranteed default rate given up | 2.5% per year (OA floor) | Up to 4%+ per year, often higher than OA |
| Risk tolerance built into rules | Moderate | Conservative — reflects SA’s retirement focus |
Source: CPF Board CPFIS scheme rules, 2026.
The Bottom Line
CPFIS gives Singaporeans the option to invest part of their CPF savings for potentially higher returns, but it requires beating CPF’s own guaranteed, government-backed interest rates after fees — a bar that historical data shows many CPFIS investors fail to clear. It is a tool best used deliberately, with a clear long-term plan and realistic fee awareness, rather than a default upgrade from simply leaving savings in CPF.
Frequently Asked Questions
What is CPFIS in Singapore?
CPFIS (CPF Investment Scheme) allows CPF members to invest a portion of their Ordinary Account and Special Account savings, above a protected minimum, into approved stocks, unit trusts, ETFs, bonds, and insurance products, aiming to earn returns above CPF’s default guaranteed interest rates.
What is the minimum I need to set aside before using CPFIS?
You must set aside $20,000 in your Ordinary Account before investing the excess via CPFIS-OA, and a combined $40,000 across your OA and SA before investing via CPFIS-SA.
Is CPFIS a good idea?
It depends — CPF’s guaranteed rates of 2.5% (OA) and up to 4%+ (SA) are a genuinely high, risk-free hurdle to beat after investment fees, and historical data shows many CPFIS investors have underperformed these guaranteed rates, so it requires careful product selection and realistic return expectations.
What is the difference between CPFIS-OA and CPFIS-SA?
CPFIS-OA uses Ordinary Account savings and allows a broader range of approved investments including stocks and ETFs, while CPFIS-SA uses Special Account savings and is restricted to lower-risk products, reflecting the SA’s more protected role in retirement funding.
How do I start investing with CPFIS?
You need to open a CPFIS Investment Account through one of the three CPFIS agent banks — DBS, OCBC, or UOB — and then select from the official CPFIS Included Investment list published by the CPF Board.