Isn't it good thats is now 3.5%?
many CPF linked investments like unit trusts all are loss making or
cnt even match 2.5% interest p.a.
other option is shares, but also high risk
First of all 3.5% is not a lot. After you factor in inflation
of, say 2%, you are just left with only 1.5%. I do agree that it
comes risk free but still its a measly amount if you consider how
expensive Singapore is getting every day.
To answer your second concern that unit trusts are losing money and
can't match the current 2.5%, i would just say this, if you
carefully plan your investments for LONG TERM, do your research
& home work, and most importantly stick with your plan, its
quite easy to achieve returns far superior to the OA return of
3.5%.
Do not get carried away by what your investment "adviser" tells
you. Do not just rely on investment companies to "choose" unit
trusts for you. Most of the time they are only interested in making
money for themselves and you will end up with an opinion that "unit
trusts cant even match 2.5% interest p.a"
