Singapore Finance Glossary
Plain-English definitions of the CPF, tax, property and investing terms Singaporeans actually run into — each one linked to the calculator or guide that puts it to work.
CPF
9 termsBasic Healthcare Sum(BHS)
The maximum amount you can hold in your MediSave Account, adjusted every year. Once MediSave reaches the BHS, further CPF contributions that would have gone to it overflow into your Special or Retirement Account instead.
Read definitionCentral Provident Fund(CPF)
Singapore’s mandatory social-security savings scheme. Each month a slice of your salary, topped up by an employer contribution, goes into CPF and is split across accounts for housing, healthcare and retirement. The savings earn government-guaranteed interest.
Read definitionCPF LIFE
Singapore’s national annuity scheme. Using the savings in your Retirement Account, it pays you a monthly income for as long as you live, with payouts starting any time between ages 65 and 70. There are three plans — Standard, Basic and Escalating.
Read definitionCPF MediSave Account(MA)
The CPF account for healthcare — hospital bills, MediShield Life premiums and approved insurance. It earns around 4% a year and is capped at the Basic Healthcare Sum; contributions that would exceed the cap overflow into your other CPF accounts.
Read definitionCPF Ordinary Account(OA)
The CPF account you can use for housing, approved investments, insurance and education. It earns a floor of 2.5% a year — lower than the other accounts — which is why many members consider moving spare OA savings to retirement savings.
Read definitionCPF Retirement Account(RA)
Created on your 55th birthday from your Ordinary and Special Account savings to fund your retirement payouts. It earns around 4% a year and is the pool used to join CPF LIFE, which pays you a monthly income for life.
Read definitionCPF Special Account(SA)
A CPF account for retirement savings that earns around 4% a year. From 2025 the Special Account is closed for members aged 55 and above: their SA savings were moved into the Retirement Account up to the Full Retirement Sum, with any excess going to the Ordinary Account.
Read definitionFull Retirement Sum(FRS)
The target CPF retirement balance that funds the standard CPF LIFE payout. For members turning 55 in 2026 the FRS is $220,400. The Basic Retirement Sum is half the FRS, and the Enhanced Retirement Sum (the maximum you can top up to) is four times the Basic Retirement Sum.
Read definitionSupplementary Retirement Scheme(SRS)
A voluntary savings scheme that gives you a dollar-for-dollar tax relief on what you put in. The money can be invested, and from the statutory retirement age withdrawals are spread out with only 50% taxed. Withdraw early and you pay tax on the full sum plus a 5% penalty.
Read definitionTax
4 termsChargeable Income
The part of your income that is actually taxed: your total income minus allowable deductions and personal reliefs. Singapore’s progressive resident rates of 0% to 24% are applied to this figure, not to your gross pay.
Read definitionTax Relief
An amount subtracted from your income before tax is worked out, which lowers your chargeable income and so your tax. Reliefs come from things like CPF top-ups, SRS, and child or parent support. All your personal reliefs combined are capped at $80,000 a year.
Read definitionTax Residency (183-day rule)
Whether you are taxed as a Singapore tax resident. You are a resident for a year if you stay or work here for at least 183 days — taxed at the progressive 0%–24% rates with access to reliefs. Below 183 days you are a non-resident, taxed at a flat 15% on employment income (or resident rates if higher) with no reliefs.
Read definitionYear of Assessment(YA)
The year in which income is taxed. You are always taxed in the year after you earn — so YA2026 assesses the income you earned during 2025. Tax reliefs and rates are quoted by Year of Assessment.
Read definitionProperty
9 termsAdditional Buyer’s Stamp Duty(ABSD)
An extra stamp duty on residential property that depends on your residency status and how many properties you already own. A Singapore Citizen pays 0% on a first home but 20% on a second; Permanent Residents pay 5% on their first; foreigners pay 60% on any.
Read definitionAnnual Value(AV)
IRAS’s estimate of the yearly rent your property could fetch if it were let out, used to work out your property tax. It is not based on what you paid for the home, and applies whether or not you actually rent it.
Read definitionBuyer’s Stamp Duty(BSD)
The stamp duty every property buyer pays, charged on a progressive scale on the purchase price or market value, whichever is higher. It applies on top of any Additional Buyer’s Stamp Duty.
Read definitionLoan-to-Value(LTV)
How much of a property’s price you are allowed to borrow. Your first housing loan is capped at 75% LTV, so you must fund at least 25% yourself — and for a bank loan, at least 5% of the price has to be in cash.
Read definitionMinimum Occupation Period(MOP)
How long you must live in an HDB flat before you can sell it or rent out the whole unit — 5 years for standard flats, and 10 years for the newer Plus and Prime flats. The clock starts when you collect your keys.
Read definitionMortgage Servicing Ratio(MSR)
A borrowing limit that applies only to HDB flats and Executive Condominiums: your monthly home-loan repayment cannot exceed 30% of your gross monthly income. It applies on top of the wider TDSR.
Read definitionSeller’s Stamp Duty(SSD)
A stamp duty you pay only if you sell residential property within the holding period after buying it — 4 years for homes bought on or after 4 July 2025, and 3 years for those bought earlier. The rate tapers each year and drops to zero once the holding period passes.
Read definitionSingapore Overnight Rate Average(SORA)
The benchmark interest rate that most Singapore home loans are now pegged to, published every day by MAS. When SORA rises, floating-rate mortgages get more expensive; when it falls, they get cheaper.
Read definitionTotal Debt Servicing Ratio(TDSR)
A borrowing limit set by MAS: when you take a property loan, all of your monthly debt repayments combined — home loan, car loan, credit cards and so on — cannot exceed 55% of your gross monthly income.
Read definitionInvesting & rates
3 termsFinancial Independence, Retire Early(FIRE)
A movement built on saving and investing enough that your investment returns can cover your living costs, making work optional. A common rule of thumb is a portfolio of about 25 times your annual expenses.
Read definitionSingapore Savings Bonds(SSB)
A safe government bond made for individuals: your principal is guaranteed, you can redeem in any month with no penalty, and the interest steps up the longer you hold, up to 10 years. Fully backed by the Singapore Government.
Read definitionTreasury Bill(T-bill)
A short-term Singapore Government security with a 6-month or 1-year term, sold at auction at a discount: you pay less than the face value upfront and are paid the full face value at maturity, the difference being your return.
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