Easy steps to open your CPF Investment Account (with illustration)
There are numerous articles out there talking about CPF Investment Account and CPF Investment Scheme. But most do not show step-by-step on how to open a CPF Investment Account. At least not when I was researching on how to do so previously. Hence, I’ve decided to create an illustrative process on opening a CPF Investment Account, not just for family and friends but also for people out there who are interested. (For our global readers: CPF stands for Central Provident Fund and it is a compulsory comprehensive savings and pension plan for working Singaporeans and permanent residents to fund their retirement, healthcare, and housing needs in Singapore.)
Part of my motivation for wanting to invest my CPF monies is to take advantage of market dislocations as we have seen from the recent volatility from February to April 2020. I wanted to be ready should the opportunities arise again.
To start off, you CAN investment a portion of your CPF Ordinary Account savings into 3 categories namely (i) Professionally Managed Products, (ii) Stocks, and (iii) Gold. All you need is $20,000 in your CPF Ordinary Account.
Step 1: Find out how much you can invest with your CPF Ordinary Account
You can find out how much to invest in each category from the myCPF app shown below.
Source: Finance and Toast. Figures anonymized for confidentiality purposes.
Step 2: Apply for a CPF Investment Account online at one of the three local banks (DBS, UOB, OCBC)
Once you have determined that you have sufficient monies to invest in your CPF account, you can open a CPF Investment Account at one of the three local banks. I did mine online at DBS since I have an account with them since young and was familiar with their internet banking interface. You can use UOB and OCBC as well.
All you need is to fill up the form in the link below.
Step 3: Complete the CPF Investment Scheme Self-Awareness Questionnaire (SAQ)
Next, you just need to complete an easy questionnaire via the below link.
If you are familiar with investment products, you can skip the videos and go straight to the quiz. Note that you will need to login to SingPass to attempt the quiz.
Once you have successfully completed the questionnaire and opened an account with DBS, you will be notified of your CPF-Investment Account (IA) number.
Step 4: Link your CPF Investment Account to your brokerage account
I used POEMS (Phillip Securities) to link my CPF Investment Account to my POEMS brokerage account. This will typically take 2-3 working days to reflect. I believe it is the same for other brokerage platforms as well.
Step 5: Trade with your CPF monies and click payment type as “CPF”
Once you are done linking your CPF Investment Account to your brokerage account, you can start trading with your CPF monies. This is how I used my CPF monies to invest into Koufu shares which I wrote about here.
It is actually a pretty straightforward process which can be done in less than an hour or so.
Just a word of caution, please only trade / invest your CPF monies if you are sure of what you are doing. As this is your hard earned money, do exercise extra caution and assess if you are willing to put your money at risk.
How many of you are also investing your CPF monies to get higher returns? Share with us in the comments box below.
Disclaimer: I do not represent any company or organization in publishing this post. All views and thoughts are mine.