A story:

Racheal was envious of her friend who sold her ​apartment at a good price. However, it turned ​out that the cash proceeds from the sale did not ​amount to much.

The reason for this was that a substantial portion ​of the profit had to be returned to the CPF ​account as "accrued interest".

The above story took place years back, yet I've ​noticed that many people are unaware of the ​accrued interest till this day.

What is the CPF Accrued Interest?

The accrued interest is the interest you would ​have earned in your CPF savings if you hadn't ​used that money.

It is akin to borrowing money from your future ​retirement fund.

The rationale for returning the accrued interest ​is meant for the good of preserving your ​retirement funds. The money is still yours.

When selling your property, the accrued interest ​will be subtracted from the sales proceeds before ​you receive the remaining amount.

Understanding this will prevent any surprises ​where your cash proceeds are lower than ​anticipated.

Remember to set aside enough funds for ​purchasing a new home and covering renovation ​expenses.

FAQ

• Where can I Check my Accrued Interest?
  

Log into your CPF account >> My CPF >> Home ​Ownership.

You’ll be able to see the principal amount used from ​your CPF and the accrued interest accumulated.

• What if I am Not going to Ever Sell My House?
  

Then there is no need to return the accrued interest. ​into your CPF account.