CPF: Interest Calculation

When is the best time to do a one time repayment to your CPF?
Based on the 2 explanation below, the best time to do the one time repayment is after all CPF deposit is done, e.g. after Employer has deposited your CPF.
This is because the CPF Savings interest is based on the lowest amount in your CPF for the month. If the money is deducted first before the deposit, then the interest is based on the balance after deduction and does not include the deposit. Assuming you have $100,000 in your OA on 1st Jan 2011.
Scenario 1: Repayment done before deposit
On 12th Jan 2011, CPF deduction of $1000 (current balance = $99,000)
On 15th Jan 2011, CPF deposit of $1200 (current balance = $100,200)
CPF Savings interest based on $99,000

Scenario 2: Repayment done after deposit
On 15th Jan 2011, CPF deposit of $1200 (current balance = $101,200)
On 20th Jan 2011, CPF deduction of $1000 (current balance = $100,200)
CPF Savings interest based on $100,200


Do you know how CPF Loan interest is calculated?
It's based on the amount on the last day of the month.

Do you know how CPF Savings interest is calculated?
It's based on the lowest amount for the month. Assuming you have $100,000 in your OA on 1st Jan 2011. For the first 3 months, the transactions are as follows:
On 10th Jan 2011, CPF deduction of $200 (current balance = $99,800)
On 12th Jan 2011, CPF deduction of $1000 (current balance = $98,800)
On 12th Feb 2011, CPF deduction of $1000 (current balance = $97,800)
On 15th Feb 2011, CPF deposit of $1200 (current balance = $99,000)
On 15th Mar 2011, CPF deposit of $1200 (current balance = $100,200)

[Interest 2.5% as of Jan 2011]
Interest for the month of Jan 2011 = $98,800 x 2.5%/12 = $205.83
Interest for the month of Feb 2011 = $97,800 x 2.5%/12 = $203.75
Interest for the month of Mar 2011 = $99,000* x 2.5%/12 = $206.25
Interest for the month of Apr 2011 = $100,200 x 2.5%/12 = $208.75

*For the month of Mar, the interest is based on 99,000 and not 100,200 because on 1st March, the opening balance is only 99,000 (which is the lowest balance).

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Funds Transfer

Do you know how Funds Transfer (via Credit Card) actually works??

Recently I was offered a low interest with $0 sales charge funds transfer from my credit card. Though they are some that offers 0%, but it needs a one-time payment of certain percentage. But this low interest funds transfer's interest is calculated to be lower that the one time payment ones.
So I opt for it.

Later I found out that when you take up the funds transfer, there are 2 things you need to take note of:
1) Credit Terms will be void
In English: It means that your current credit card's credit terms, the period when you first charge your card until the time when you received your bill with the due date written, is no longer applicable. As such, when you sign your card, you are billed with 24%/annum interest immediately.
E.g.
1 October : Spend $100 Dinner
15 October : Received bank statement
30 October : Statement Due Date
From 1 Oct to 30 Oct, you will not be charged with the 24%/annum interest; thus you have a credit terms of 30days (1 to 30 October) for this purchase.
But when you take up a Funds Transfer, on 1 October you will be charged with 24%/annum immediately. So when you receive your bill on the 15 October, you will be charged with 15 days (1 to 15 October) of 24%/annum interest already!!!

2) Payment made is always done for the lowest interest amount first
In English: It means that if you signed up a low interest funds transfer of 2%/annum, but your credit card is 24%/annum interest, then your payment is always to the funds transfer amount. The credit card amount will be paid only after all the funds transfer amount is paid up.
E.g.
1 October : Take up funds transfer of $10k with 2%/annum (first six mths)
5 October : Spend $100 Dinner
15 October : Received bank statement
30 October : Statement Due Date
Firstly your $100 dinner will be charged with 24%/annum from 5 October (refer to point 1 above) though you receive your statement on 15 October.
Secondly when you make your payment on the 15 October, say you are paying $100, you are actually offseting the $10k amount.
As such, your $100 will be forever charged with 24%/annum until you pay up all the $10k.

Interesting right?