If you didn’t know yet, the basic healthcare sum (BHS) has increased from S$54,500 in 2018 to S$57,200 in 2019. Based on information from the CPF website, monies in the Medisave Account (MA) and Special Account (SA) earns up up to 5% interest rate per annum. Monies in the Ordinary Account (OA) earns up to 3.5% interest per annum.
With the increase in limit for the basic healthcare sum (BHS), we can take the opportunity to top up our Medisave Account (MA) using cash.
There are several benefits of hitting the current limit (S$57,200) of your Medisave Account:
- Tax rebates if you use cash to top up your Medisave Account (MA).
- When you have max out your Medisave Account (MA), your monthly CPF contribution from your salary and employer gets overflown over to your Special Account (SA). The Special Account (SA) earns you a higher interest of 5% per annum. If your Special account (SA) have met the Full Retirement Sum (FRS), the monies will overflow to your Ordinary Account (OA) which earns you a 3.5% interest rate per annum.
If you do not know how to top up your Medisave Account using cash, below is a step by step pictorial guide on how to top up your Medisave Account (SA) using cash via eNets.
Click on the “Services” link in the menu.
Click on the “e-Cashier” link.
You will be directed to the e-Cashier page which allows you to make an electronic payment to the CPF board. Click on “Proceed” button.
I assume that you are topping up your own Medisave Account (MA). Select the “Payment for” drop down list.
Select the option “Contribute to my Medisave (Tax deductible)”.
Read the Terms and Conditions and tick “I have read and accepted the Terms & Conditions above”.
Enter the amount that you wish to contribute. Alternatively, you can click on the “Check Allowable Contribution” to check how much further you can top up your Medisave Account (MA).
Tick the check box “I Agree” and click on Submit button. You will be directed to the eNets website for payment.
After completion of payment via eNets, you will be redirected back to CPF website acknowledgement page which will display the details of the transaction that you have just performed.