Explainer: How are CPF interest rates calculated, and should you move funds to the Special Account amid higher rates?

In view of the increased interest rates for Central Provident Fund (CPF) Special and Medisave accounts, should one move funds to their Special Account (SA) to benefit from the higher rates? Jamie Lee, Endowus head of financial planning and editorial, advised that while the increase in SA rates to 4.01% is attractive, the transfer process is irreversible. CPF members should carefully consider the limitations of transferring their monies from their Ordinary Accounts as these funds can also be used for other purposes such as mortgage servicing and paying for education loans.