One way to earn more interest from CPF is to transfer your extra money, into your CPF Special Account.
Your Ordinary Account currently earns 2.5%, Special Account and Medisave Account earns 4% interest while your normal bank Fixed Deposit earns less than 2% annually.
Real Life Example:
My mum is 46 this year. She wanted to buy a 10 year Fixed Deposit which earns less than 3% per year. I suggested that she put her money into her CPF to earn the CPF interest.
Based on her current age, her contribution will be split into the 3 accounts in the following allocation:
Assuming she puts in $1,000, the allocation will be as follow:
$513.60 into OA
$216.20 into SA
$270.2 into MA
Based on the above, my mum will get an average 3.23% interest on her $1,000 per annum.
She will also get to withdraw the money out when she reaches age 55.
Of course, if my mum fails to meet her minimum sum, the money that goes into her CPF will not be returned to her at the "end of the maturity" - instead she will get it as future monthly payouts.
But there will be other factors to be considered and there will be ways to withdraw the money out, which will be explained in future posts.
All in all, if you wish to have a higher interest rates than Fixed Deposit and risk-free, you can consider putting your money into your CPF, especially if you are near 55 years old - where the risk-return profile is more skewed in your favour.