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CPF Interest Hike, will it affect the stock market

pension,

u say dump thoes uncle/aunties with cpf share will juz like dat dump meh? considering the pathetic drop in stock prices now?? come on....wonder y  the Garmen dun say up the cpf interest rate like the method they use for giving Economic Shares based on housing type? hee...like that i got more chance mah ...hiak hiaks.. :P

 

when investor start to dump share under cpf investment scheme to enjoy the cpf rate hike, share market will be affected. When investor start to withdrew cpf to invest those share approved by cpf, cpf will be affected. Everyone was surprise when the cpf hike announcement was made. good or no good for the hike, let the time prove itself.

 

 

So after december  concessionary rate will be 3.5 + 0.1 or 2.5 + 0.1?

Assuming if the rate goes to 3.6. Will this affect the stock market?which counter will be affected most?


 

 

 

read cpf annoucement from their website for CPF and HDB interest rate : cut here for your reading:

 

News Releases

CPF INTEREST RATE AND HDB MORTGAGE RATE FROM 1 OCTOBER 2007 TO 31 DECEMBER 2007       Joint News Release by: Central Provident Fund Board Housing & Development Board 15 August 2007 --       The CPF Board will continue to pay interest to its members at the rate of 2.50% per annum for CPF savings in their Ordinary Account from 1 October 2007 to 31 December 2007. The CPF interest rate is reviewed quarterly.       The computed CPF interest rate derived from the major local banks? interest rates for the three-month period, 1 May 2007 to 31 July 2007, works out to be 0.74% per annum. However, the Board will be paying the higher rate of 2.50% per annum as the CPF Act provides for a minimum CPF interest rate of 2.50% per annum. This minimum rate is higher than the 12-month fixed deposit and savings rates of the major local banks for the May 2007 to July 2007 period.       Savings in the Medisave Account, Special Account and Retirement Account will earn interest at 4.00% per annum. This is 1.5 percentage points higher than that for the Ordinary Account. The concessionary interest rate for HDB mortgage loan, which is pegged at 0.1 percentage point above the CPF interest rate for the Ordinary Account, will remain unchanged at 2.60% per annum from 1 October 2007 to 31 December 2007. The next revision of the CPF interest rate will be made on 1 January 2008. The detailed computations of the CPF interest rate and the HDB mortgage loan interest rate are given in the Annex.       PUBLIC ENQUIRIES   Members with enquiries may call the CPF Call Centre on 1800-227 1188.

 

 

my info from other forum is 60K combined i.e OA+SA+Medisave. >60K you can invest. <60K you cannot invest and have to take the 3.5% for first 20K, 2.5% thereafter. 60K is the barrier. over 60K you can play investment, under 60K you be obedient and wait for govt give you interest ok?

correct me if i'm wrong. 

 

What will happen to the HDB concessionary rate?

Will it go up by as well?

 

 

 

I think many layman do not understand it.

 

Well, getting more and more chim..

Wait for more news on this to shed some light.

 

well...GOVT means..those with combine >60k in cpf...u ppl are the better ones..can "SURVIVE" on your own...any $$ u hv >60k u can do any cpf investment u like...BUT if u invest until -ve returns and your total cpf fall <60k !! dont worry...we will up 1% cpf saving rate to your account..so that u can continue to save until it hit >60k again !!..then if u feel like it..u can invest that cpf sum and PUNT on SGX ?? hee...at least tt's my understanding...didn't read in details also...hee

 

When I first hear the news on the radio this morning, my first reaction is oh man does that mean I have to pay more cash to top up my own money's interest when I sold my HDB. So I glance thru the table of changes on the newspaper and I think there is some sort of cap but I am too lazy to read it thoroughly. Because maybe next year PAP government will modify policy again. Besides why worry, they will tell you what to do when I sell my HDB. Long time ago, I said to myself maybe I should use my cpf to buy stock but later I found out I need to open an account with bank in order to do that. Well, that's just too much of hassle for me. Now I think about it. Maybe it's wise not to use cpf to buy stocks.   

 

It was a big surprise to me about the hike. If the interest rate is higher than the dividend that company you invested using cpf, it better to sell that stock and put your money back to cpf and vice versa.

 

Now sure what gov meant by saying "not for those who invested with cpf $'.

If he meant those who already invested with CPF $, then their remainder $ will not have the extra 1%, then ppl will continue to invest cos they do not gain from the new rate.

If he meant the remainder $60k in account will still get extra 1%, maybe ppl will start to recalculate the risk, especially in unit trust.

 

Some say yes, some say no, what is your view?