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House Loan, Refinancing House Loan

EPF pays dividends for savings reserved under Housing Loan Monthly Instalment Withdrawal

The Employees Provident Fund (EPF) would like to state that members’ savings that have been kept aside in a separate account for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends accordingly. This statement comes in response to recent emails and blogs that state the EPF does not pay dividends on the said amount.

When a member’s application for Housing Loan Monthly Instalment Withdrawal is approved, the total amount of savings that will be taken out from Account 2 for the purpose of this withdrawal will be put aside in another account. The reason for this is to separate the amount from the main account, as funds allocated for this withdrawal cannot be used for other withdrawals from Account 2. In addition, it serves to facilitate as well as monitor the monthly payments.

The EPF would like to reiterate any savings that are still with the EPF will continue to earn dividends annually up until the member reaches the age of 75. Accordingly, the savings that have been kept aside and are committed for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends for the year. The dividends on this amount will be credited into Account 2 after dividend for the year is declared.

In any case, the Housing Loan Monthly Instalment Withdrawal was introduced in January 2008 and as dividend for 2008 is yet to be declared, there is no issue of the EPF not paying dividends on the said amount.

We hope that this statement will put to rest any confusion regarding this issue. The EPF wishes to assure its members that it is committed to protecting members’ interests and enhancing the value of their savings.

(NIK AFFENDI JAAFAR)
Senior Manager
Public Relations
Employees Provident Fund

Date: 30 October 2008
 
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