NTUC membership is a great way to build your savings and get financial benefits. With membership, you can tap into the wealth of savings and benefits available at NTUC. However, it’s not always as simple as it looks. Do you know what benefits you can enjoy with membership? Check out this article to fully explain what being an NTUC member means, how much it costs, and what type of savings you can access with membership.
What is a CPF Housing Grant?
The Central Provident Fund (CPF) is a retirement savings initiative that was put in place by the government in 1957. You can contribute a minimum of $60 per month to your CPF account and get a guaranteed rate of return of 8%. The housing grant is a cash subsidy given to eligible individuals and couples who are planning to purchase a residential property using their CPF savings.
The housing grant is an incentive to help you buy your first home more affordably than you could on your own. If you meet the requirements of the housing grant and are eligible to receive it, you will receive a 0.8% rebate from your CPF savings. This means that you need to contribute $60 per month to your CPF account, and you will get $6.80 back in the form of a housing grant rebate.
What Is NTUC Membership?
NTUC membership is a type of membership that you can use for a variety of services at NTUC. The main benefits of membership are: – Dormant membership is a good option if you don’t receive any income from your investments. With this type of membership, you get access to the highest savings rates, and no minimum deposit is required. This means you can start saving without worrying about the burden of a large initial investment. Dormant membership is suitable for those with low income, high debts, or financial constraints. This type of membership is ideal for those who want to begin their financial journey but don’t have the funds to start saving.
Who is eligible for the housing grant?
Before we get into the specific requirements for the housing grant, let’s look at who is eligible for the subsidy in the first place. Unlike a mortgage loan, you don’t need to be a permanent resident of Singapore to be eligible for the housing grant. The government will consider you eligible if you currently live in Singapore or plan to move here within one year of applying.
So if you don’t qualify for the housing grant based on your current situation, you may still qualify if you plan on living in Singapore for at least 10 years. You are also eligible if you are a citizen of any country who is above the age of 35 years old.
Requirements for CPF Housing Grant
The housing grant is a government subsidy meant to help you lower the cost of buying a home. To be eligible, you must contribute $60 per month to your CPF account. This amount is deducted from your monthly pay and is part of your basic monthly allowance. Then you must use $6.80 of this monthly allowance and apply for a mortgage loan against the remaining balance of $54.80. The maximum loan amount you can use is $60,000, which is the combined value of two properties. In effect, you will be taking a loan of $28,000 from your CPF account.
What Are The Benefits of Membership?
There are a lot of benefits associated with being an NTSC member. We will outline a few
- Higher interest rates on your savings
With a basic membership, you can enjoy higher interest rates on your savings. This is because you’re paying a membership fee, which means you get a better return on your money. But if you don’t pay a membership fee, you can still enjoy the higher interest rates.
- Lower account opening fees
If you’re opening a savings account, you’re probably facing a hefty fee. With NTUC membership, you can save money on account opening fees thanks to the no-fee feature.
- Free insurance
NTUC membership may include coverage of public transport and property insurance. This means you don’t have to pay for these coverages.
- Better medical cover
Many medical cover plans are grounded in logic and statistics. But insurance plans have a social component, which means they’re grounded in psychiatry. As a result, most medical cover plans are not very helpful. With NTUC membership, you get a medical plan that’s more geared towards your needs.
- Physical examinations
If you’re a member of NTUC, you can get a free checkup every year from a doctor. This can be a great way to keep your health in check and ensure you don’t miss any health issues.
- Government-approved SIP loan
This loan is meant for small businesses. This means you can tap into the $60,000 loan that’s offered to members.
- Free gym membership
If you’re not part of NTUC, you have to pay for membership fees at the gym. With NTUC membership, you get a free membership at most gyms.
- 50% discount on medical services
With medical plans, you can get 50% off on medical services like doctor’s checkups, dental checkups and physiotherapy.
- Free travel insurance
If you’re not sure whether you’ll be able to make it to an important meeting or event, you can activate travel insurance. There are a few plans that come with free travel insurance.
How do I become an NTUC FairPrice member?
Membership can be activated for you by a member of your family. You may be offered a one-off payment to activate your membership. If you’re not offered membership by someone in your family, you can get it activated for you. To activate your membership, visit an NTUC FairPrice branch. You can also activate your membership through the app. However, this requires you to scan a QR code so make sure this is done when you visit a branch or the app.
How much does NTUC membership cost?
The cost of membership depends on how you want to access your money. You can either pay a membership fee or pay a monthly fee for automatic transactions. For paying a membership fee, the amount depends on your age. – Under 21 years old – $10 – 21 years to 60 years old – $20 – 60 years and above – $32 – There are also insurance plans that are meant for seniors. Some insurance plans are a part of the NTUC benefits scheme. The benefit plans, which are meant for seniors, come with a monthly fee and a membership fee.
CPF Housing Grant for private property
The housing grant for private property is an interesting one. In addition to receiving a rebate from your CPF account, you can use the purchase price of the second property as a down payment for the first property. Why would you do this? The mortgage interest deduction cap is $1,500. So by using your housing grant to purchase a private property, you can also get a deduction on your down payment for the first property.
For example, let’s say you are eligible to receive the maximum amount of 0.8% housing grant. You contribute $60 per month to your CPF account and purchase a private property with a purchase price of $300,000. Since you are eligible for a $28,000 mortgage, you will have a total down payment of $14,000. This is the down payment you will get back from your CPF account after the government rebate and home loan deduction.
Conclusion
With membership, you can tap into the wealth of savings and benefits available at NTUC. However, it’s not always as simple as it looks. This article will help you understand what being an NTUC member means, how much it costs and what type of savings you can access with membership.