Singapore Financial Glossary

CPF Lifelong Income For the Elderly (CPF LIFE) is a national longevity insurance annuity scheme providing Singapore Citizens and Permanent Residents with monthly payouts for life, starting from age 65. Members can choose between three plans — Standard (default), Basic, and Escalating (which raises payouts by 2% annually). Premiums are deducted from the member's Retirement Account at the start of payouts. Payout levels depend on the RA balance set aside (BRS, FRS, or ERS) and the plan selected.

The Ordinary Wage (OW) Ceiling is the maximum monthly salary subject to mandatory CPF contributions. From 1 January 2026, the OW Ceiling reached its final step of $8,000, raised from $7,400 in 2025. The ceiling has been phased up from $6,000 since September 2023 in four annual steps. Monthly wages above $8,000 do not attract employer or employee CPF contributions. The ceiling applies to basic monthly salaries and fixed allowances, but not to bonuses or commissions, which are governed by the Additional Wage Ceiling.

The Additional Wage (AW) Ceiling caps the supplementary income — such as annual bonuses, leave pay, and commissions, that attracts CPF contributions in a calendar year. It is calculated as the CPF Annual Salary Ceiling ($102,000 as of 2026) minus the total Ordinary Wages subject to CPF in that year. The formula ensures that bonuses attract mandatory savings while capping the combined employer and employee deduction burden for high-earning individuals.

The CPF Annual Limit is the maximum CPF contributions that can be credited to a CPF member in a calendar year, including mandatory employer and employee contributions plus voluntary contributions. For 2026, the CPF Annual Limit is $37,740. This sits alongside the CPF Annual Salary Ceiling of $102,000, which caps the total wages (Ordinary plus Additional) that attract mandatory CPF contributions in a year. Voluntary contributions above the Annual Limit are refunded by the CPF Board without interest.

The Ordinary Account (OA) is a primary CPF account used for housing, insurance, investment, and education. OA savings earn a floor interest rate of 2.5% per annum, reviewed quarterly and pegged to a 3-month average of major local banks' fixed deposit and savings rates. Members below age 55 earn an extra 1% on the first $60,000 of combined CPF balances (capped at $20,000 from OA), bringing the effective rate on that tranche of OA to 3.5%. Extra interest on OA balances is credited to the Special or Retirement Account.

The Special Account (SA) is a CPF account dedicated to old-age and retirement-related products. SA savings earn a floor interest rate of 4% per annum, extended by the Government through 31 December 2026. From 19 January 2025, the SA was closed for members aged 55 and above: SA balances were transferred to the Retirement Account up to the Full Retirement Sum, with any remainder moved to the Ordinary Account. Members below 55 continue to hold an SA, with funds reserved for retirement and not withdrawable for housing or education.

The MediSave Account (MA) is a national medical savings scheme managed by the CPF Board. MA savings earn the same floor interest rate as the SA — 4% per annum, extended through 31 December 2026. Funds are used for approved hospitalisation bills, day surgeries, outpatient treatments, and premiums for MediShield Life, CareShield Life, and Integrated Shield Plans. The MA balance is capped at the Basic Healthcare Sum (BHS), which is $79,000 for members aged 65 and below in 2026. Contributions in excess of the BHS overflow to the SA, RA, or OA depending on the member's age.

The Retirement Account (RA) is automatically created when a CPF member turns 55. SA and OA savings up to the member's Full Retirement Sum (FRS) for their cohort are transferred to the RA to fund CPF LIFE monthly payouts from age 65. RA savings earn the floor rate of 4% per annum (extended through 31 December 2026). Members aged 55 and above earn an extra 2% on the first $30,000 of combined balances and an extra 1% on the next $30,000, bringing the effective rate on the first $60,000 of RA up to 6%.

The Basic Healthcare Sum (BHS) is the estimated MediSave savings required to meet basic subsidised healthcare needs in old age. For 2026, the BHS is $79,000 for CPF members aged 65 and below, raised from $75,500 in 2025. The BHS is adjusted annually by the Ministry of Health for members below 65 to keep pace with healthcare cost growth. Once a member turns 65, their cohort BHS is fixed for life. MediSave contributions in excess of the BHS overflow to the SA (for members below 55) or RA (for members 55 and above).

The Full Retirement Sum (FRS) is the standard benchmark amount required in a CPF member's Retirement Account at age 55 to fund monthly payouts under CPF LIFE from age 65. The FRS is exactly twice the Basic Retirement Sum. For the cohort turning 55 in 2026, the FRS is $220,400, up from $213,000 in 2025. The FRS has been adjusted by approximately 3.5% annually from 2023 through 2027 to factor in inflation and rising living standards. In 2027, the FRS will rise to $228,200.

The Basic Retirement Sum (BRS) is the minimum amount in a CPF Retirement Account at age 55 that qualifies a member for basic lifelong monthly payouts under CPF LIFE. For the cohort turning 55 in 2026, the BRS is $110,200 — half of the Full Retirement Sum. By pledging a property they own, members can choose to set aside only the BRS instead of the FRS and withdraw the difference in cash. Estimated CPF LIFE Standard Plan payouts at the BRS are around $950 per month from age 65.

The Enhanced Retirement Sum (ERS) is the maximum amount a CPF member can top up their Retirement Account to at age 55 and beyond. From 1 January 2025, the ERS was raised from three times the BRS to four times the BRS — equivalent to twice the Full Retirement Sum. For 2026, the ERS is $440,800. In 2027, the ERS will rise to $456,400. The ERS resets annually, so members can continue topping up to the prevailing ERS each year to participate more fully in CPF LIFE.

The Matched Retirement Savings Scheme (MRSS) is a government initiative that provides a dollar-for-dollar matching grant for cash top-ups made to the Retirement Account of eligible Singaporeans. From 1 January 2025, the annual matching cap was raised from $600 to $2,000 per eligible member, with a lifetime cap of $20,000. The age cap of 70 was removed, expanding eligibility. The scheme also includes Singapore Citizens below 55 with verified disability status registered with the Ministry of Social and Family Development.

The Matched MediSave Scheme (MMSS) is a five-year initiative running from 2026 through 2030, designed to help eligible seniors aged 55 to 70 build up their MediSave balances. The Government matches voluntary cash top-ups to the MediSave Account on a dollar-for-dollar basis, capped at $1,000 per year per eligible member. Eligibility considers Annual Value of residence, household per capita income, and existing MediSave balance.

The Home Protection Scheme (HPS) is a mortgage-reducing term insurance scheme administered by the CPF Board. It settles the outstanding HDB housing loan in the event of death, terminal illness, or total permanent disability of an insured member. HPS is compulsory for CPF members using their Ordinary Account savings to service monthly HDB loan installments. Premiums are deducted annually from the CPF Ordinary Account. HPS does not apply to private property mortgages, which require separate mortgage insurance from private insurers.

The Dependants' Protection Scheme (DPS) is an opt-out term-life insurance scheme administered by Great Eastern Life. It provides a lump-sum payout in the event of death, terminal illness, or total permanent disability. The sum assured is $70,000 until the end of the policy year in which the member turns 60, then reduces to $55,000 until age 65 when coverage ends. Premiums are deducted by default from the CPF Ordinary Account; if the OA is insufficient, deductions fall back to the Special Account. CPF members aged 21 to 65 who are Singapore Citizens or PRs are automatically enrolled upon their first CPF working contribution, subject to good health.

The Retirement Sum Topping-Up Scheme (RSTU) allows members to top up their own or a loved one's CPF Special Account (for recipients below 55) or Retirement Account (for recipients 55 and above) via cash or CPF transfers. Cash top-ups qualify for personal income tax relief of up to $8,000 for self and $8,000 for family members per calendar year, subject to the $80,000 overall personal income tax relief cap. Top-ups can continue up to the prevailing Enhanced Retirement Sum.

The CPF Investment Scheme (CPFIS) allows members to invest part of their Ordinary Account and Special Account savings (before age 55) in approved instruments — including unit trusts, ETFs, Singapore Government Securities, Treasury bills, fixed deposits, and selected insurance products. The first $20,000 in the OA and the first $40,000 in the SA cannot be invested. CPFIS-OA covers a wider range of products, while CPFIS-SA is restricted to lower-risk instruments.

MediShield Life is a basic health insurance scheme administered by the CPF Board that helps cover large hospital bills and selected costly outpatient treatments at subsidised rates in public hospitals (Class B2 and C wards). It is compulsory and covers all Singapore Citizens and PRs for life, regardless of age or pre-existing conditions. Premiums are paid via MediSave. Members can supplement MediShield Life with an Integrated Shield Plan (IP) from private insurers for higher-class wards or private hospital coverage.

CareShield Life is a long-term care insurance scheme administered by the Ministry of Health, providing lifetime monthly cash payouts to members who become severely disabled (inability to perform at least 3 of 6 Activities of Daily Living). It is compulsory for Singapore Citizens and Permanent Residents born in 1980 or later upon turning age 30; those born in 1979 or earlier may opt in. Premiums are deducted from the CPF MediSave Account. Both payouts and premiums escalate annually pre-claim to keep pace with rising care costs.

The Notice of Assessment (NOA) is the official tax bill issued by the Inland Revenue Authority of Singapore (IRAS). It details the taxpayer's assessable income, personal reliefs granted, chargeable income, and final tax payable for the Year of Assessment. Four NOA types exist for individuals — Type 1 (Original), Type 2 (Amended), Type 3 (Additional), Type 4 (Repayment). The NOA is also widely accepted as official income verification by banks for credit card applications, personal loans, and mortgage assessments under the TDSR framework.

Assessable Income is the total income an individual earns from taxable sources in Singapore over a calendar year, before any personal tax reliefs are applied. It includes employment income, trade or business income, rental income from properties in Singapore, and taxable dividends. Capital gains, certain exempted foreign-sourced income received by a Singapore tax resident, and inheritances are excluded. Assessable Income forms the starting point for computing Chargeable Income after deductions and reliefs.

Chargeable Income is the amount of a resident's income subject to taxation after all eligible deductions and personal tax reliefs (such as Earned Income Relief, QCR, WMCR, SRS, and CPF cash top-ups) are subtracted from Assessable Income. Singapore uses a progressive resident tax rate system: 0% on the first $20,000, rising in steps to 24% on income above $1 million (rates applicable from Year of Assessment 2024). The total personal income tax relief claimable per individual is capped at $80,000.

A Tax Resident in Singapore is an individual who, in the preceding calendar year, was a Singapore Citizen or PR ordinarily residing in Singapore, or a foreigner who physically stayed or worked in Singapore for at least 183 days (excluding directors of a company). Tax residents are taxed at progressive resident rates ranging from 0% to 24% and qualify for personal reliefs. Non-residents are taxed at a flat 15% on employment income (or resident rates, whichever is higher) and 24% on other income, with no eligibility for personal reliefs.

The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme complementing CPF. Annual contribution caps differ by residency status: $15,300 for Singapore Citizens and PRs, $35,700 for foreigners (who do not enjoy CPF tax relief). Contributions are eligible for personal income tax relief in the following Year of Assessment, subject to the $80,000 overall relief cap. Investment returns within the SRS account are tax-deferred. At the statutory retirement age (63 today, rising to 64 from 1 July 2026), only 50% of each withdrawal is taxable; withdrawals can be spread over up to 10 years.

The Parenthood Tax Rebate (PTR) is a lump-sum tax rebate granted to married Singapore tax residents in the Year of Assessment following the birth or legal adoption of a qualifying Singapore Citizen child. PTR amounts are $5,000 for the first child, $10,000 for the second child, and $20,000 for the third and each subsequent child. Unlike tax reliefs (which reduce chargeable income), PTR is deducted directly from the final tax payable. Any unutilised PTR can be carried forward indefinitely to offset future income tax liabilities.

The Working Mother's Child Relief (WMCR) is a tax relief encouraging married women to remain in the workforce after having children. Two parallel calculation methods apply, based on the date the child became a Singapore Citizen. For children who became citizens before 1 January 2024, WMCR is a percentage of the mother's earned income: 15% for the first child, 20% for the second, 25% each for the third and beyond, capped at 100% combined. For children who became citizens on or after 1 January 2024, WMCR is a fixed dollar amount: $8,000 (first), $10,000 (second), $12,000 (third and beyond).

The Qualifying Child Relief (QCR) is a personal income tax relief of $4,000 per qualifying child available to parents maintaining an unmarried child who is below 16 years old or studying full-time. The child's annual income (from Year of Assessment 2025 onwards) must not exceed $8,000. Parents can share QCR between themselves in an agreed proportion via a Shared Claim Notification submitted to IRAS. A separate Child Relief (Disability) of $7,500 per child applies for children with disabilities, in place of QCR.

Earned Income Relief (EIR) is a personal income tax relief automatically granted to individuals deriving income from employment, pension, trade, business, profession, or vocation. The relief amount is $1,000 for individuals below age 55, $6,000 for those aged 55 to 59, and $8,000 for those 60 and above. Persons with disabilities qualify for enhanced amounts of $4,000, $10,000, and $12,000 respectively. EIR is intended to recognise active earners and encourages older workers to remain in the workforce.

The Personal Income Tax Relief Cap limits the total amount of personal income tax reliefs that an individual can claim in a Year of Assessment. The cap is set at $80,000 per individual and applies from Year of Assessment 2018 onwards. All forms of personal income tax relief, including Earned Income Relief, QCR, WMCR, SRS contributions, RSTU cash top-ups, NSman relief, and others, count toward this combined cap. Relief amounts in excess of $80,000 cannot be carried forward.

The Goods and Services Tax (GST) is a broad-based value-added tax levied on imports into Singapore and on most supplies of goods and services made in Singapore. The GST rate rose from 8% to 9% on 1 January 2024. Financial services, sale and lease of residential properties, and investment-grade precious metals are exempt. Businesses with annual taxable turnover exceeding $1 million must register for GST. Travellers leaving Singapore may claim GST refunds on eligible purchases via the Tourist Refund Scheme.

The Annual Value (AV) of a property is the estimated gross annual rent the property could fetch if rented out, excluding furniture, furnishings, and maintenance fees. IRAS determines AV based on market rentals of comparable properties in the area, reviewed annually. AV is the base for computing Property Tax, and is also used as an eligibility criterion for several government support schemes (such as MediSave top-up matching, GST Vouchers, and Assurance Package payouts).

Property Tax is an annual tax levied by IRAS on property ownership in Singapore, calculated by applying progressive tax rates to the Annual Value (AV). Owner-occupied residential properties pay concessionary rates ranging from 0% (on the first $12,000 of AV) up to 32% (on AV above $140,000). Non-owner-occupied residential properties pay higher rates from 12% up to 36%. Property Tax is payable by 31 January each year and can be paid via GIRO in 12 monthly instalments.

Buyer's Stamp Duty (BSD) is a tax payable to IRAS on the purchase or acquisition of property in Singapore, calculated on the higher of the purchase price or market valuation. For residential properties acquired on or after 15 February 2023, BSD is tiered: 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, 4% on the next $500,000, 5% on the next $1.5 million, and 6% on the portion above $3 million. Non-residential BSD tiers go up to 5%. BSD is payable within 14 days of the Sale and Purchase Agreement.

The Additional Buyer's Stamp Duty (ABSD) is an additional tax on residential property purchases, imposed on top of BSD. Rates effective from 27 April 2023: Singapore Citizens pay 0% on the first property, 20% on the second, 30% on the third and subsequent. Permanent Residents pay 5%, 30%, 35%. Foreigners pay a flat 60% from the first residential property. Entities and trustees pay 65%. ABSD is calculated on the higher of purchase price or market value and is payable within 14 days of the Sale and Purchase Agreement.

Seller's Stamp Duty (SSD) is a tax payable when a residential property is sold within a specified holding period after purchase. For properties purchased on or after 4 July 2025, the holding period is 4 years and tiered rates are 16% (within Year 1), 12% (Year 2), 8% (Year 3), and 4% (Year 4). Properties purchased between 11 March 2017 and 3 July 2025 fall under the previous regime: 3-year holding period with rates of 12%, 8%, and 4%. SSD does not apply to HDB flats because the Minimum Occupation Period already restricts resale.

Corporate Income Tax (CIT) is levied on the chargeable income of companies operating in Singapore. The headline CIT rate is a flat 17%. Singapore operates a single-tier territorial corporate tax system: tax is paid on profits derived in or remitted to Singapore, and dividends paid to shareholders are not further taxed. The Start-Up Tax Exemption (SUTE) and Partial Tax Exemption (PTE) schemes reduce the effective rate for qualifying companies, particularly in their first three Years of Assessment.

Build-To-Order (BTO) is the primary public housing scheme administered by the Housing & Development Board (HDB). Flats are constructed only after a specific demand threshold is met during a sales exercise. BTOs are sold on a 99-year lease at subsidised prices directly by HDB to eligible Singaporean households and typically take 3 to 4 years to complete. Income ceilings apply: $14,000 for families, $7,000 for singles buying a 2-Room Flexi flat. From October 2024, BTO flats are classified into Standard, Plus, and Prime categories.

The Sale of Balance Flats (SBF) is a periodic HDB sales exercise offering unsold BTO units, surplus Selective En bloc Redevelopment Scheme (SERS) replacement flats, and repurchased flats. SBF units are sought after because they are typically already completed or near completion, drastically reducing the waiting time compared to a standard BTO launch (often less than 3 years versus 3 to 4 years for BTO). SBF exercises are typically held alongside BTO launches, with the same income ceilings and eligibility rules applying.

The Minimum Occupation Period (MOP) is the mandatory time HDB flat owners must physically live in their unit before they are legally permitted to sell it on the open resale market or rent out the entire flat. For Standard flats (including most BTO and resale flats), the MOP is 5 years. For Plus and Prime flats (introduced under the October 2024 classification), the MOP is extended to 10 years. Time spent overseas or as a tenant elsewhere does not count toward the MOP.

The Standard, Plus, and Prime classification framework was introduced by HDB in October 2024 for new BTO launches. Standard flats apply to most locations and follow the typical 5-year MOP with no resale restrictions. Plus flats are in choicer locations within each region, carry additional subsidies, a 10-year MOP, and a subsidy clawback at resale. Prime flats are in the most central locations (such as parts of the Central Area), with the highest subsidies, a 10-year MOP, a subsidy clawback (typically 6%), and income ceilings on resale buyers.

The Loan-to-Value (LTV) Limit caps the maximum percentage of a property's purchase price or valuation (whichever is lower) that can be financed through a mortgage. For the first outstanding housing loan, both bank loans and HDB Concessionary Loans are capped at 75% LTV (the HDB cap was lowered from 80% to 75% on 20 August 2024). For a second outstanding housing loan, bank LTV drops to 45%; for a third and subsequent, 25%. Loan tenure beyond 30 years or borrower age over 65 at loan maturity further lowers these limits.

The Total Debt Servicing Ratio (TDSR) is a lending limit implemented by the Monetary Authority of Singapore. It caps a borrower's total monthly debt obligations — including mortgage repayments, car loans, student loans, credit card balances, and personal loans — at 55% of gross monthly income. The 55% limit has applied since 16 December 2021. TDSR applies to all property loans from financial institutions for both residential and non-residential purchases.

The Mortgage Servicing Ratio (MSR) is an additional lending limit applicable only to purchases of HDB flats and Executive Condominiums (ECs) bought directly from developers. It caps the portion of a borrower's gross monthly income that can go toward repaying all property loans at 30%. MSR applies in addition to the 55% TDSR, and the lower of the two is the binding constraint. The MSR was last set at 30% in January 2013.

Cash Over Valuation (COV) is the difference between the agreed purchase price of an HDB resale flat and the official HDB valuation. Because housing loans and CPF usage are capped at the official valuation, any COV must be paid entirely in cash by the buyer. Since 2014, HDB only provides valuation after the Option to Purchase is granted, removing transparent upfront COV figures from the buying process. COV reflects the premium buyers are willing to pay for location, renovation, or other intangibles.

The Resale Levy is a fee payable to HDB when a household that previously enjoyed a housing subsidy (such as a first BTO or DBSS flat) buys another subsidised housing unit, such as a second BTO or a new Executive Condominium directly from a developer. The levy ensures fair distribution of housing subsidies between first-timers and second-timers. Standard amounts: $15,000 (2-room), $30,000 (3-room), $40,000 (4-room), $45,000 (5-room), $50,000 (executive), and $55,000 (executive condominium).

An Option to Purchase (OTP) is a legally binding contract between a property buyer and seller. For private property, the buyer typically pays a 1% option fee to secure the exclusive right to purchase the property within a 14-day validity period (extendable by mutual agreement). For HDB resale flats, the option fee can range from $1 to $1,000, with the seller and buyer free to negotiate. To exercise the OTP, the buyer pays an additional 4% (private property) or up to $5,000 minus the option fee (HDB). Forfeiture of the option fee occurs if the OTP is not exercised.

The HDB Flat Eligibility (HFE) Letter is the integrated assessment document required before purchasing any HDB flat. Introduced in May 2023, it replaced the older HDB Loan Eligibility (HLE) letter. The HFE consolidates eligibility for flat purchase, CPF Housing Grants, and the HDB Concessionary Loan into a single application. A valid HFE letter is required before applying for a BTO, submitting an SBF application, or being granted an Option to Purchase for an HDB resale flat. Validity is typically 9 months.

An In-Principle Approval (IPA) is a non-binding indication from a bank of the maximum home loan amount it may extend to a buyer, based on the buyer's credit health, income documentation, and existing debt obligations under the 55% TDSR framework. IPAs are typically valid for 30 days. Obtaining an IPA before signing an Option to Purchase clarifies the buyer's budget and reduces the risk of forfeiting the OTP fee due to loan rejection. IPAs apply to bank loans for private property and HDB resale; HDB Concessionary Loans use the HFE Letter instead.

The Temporary Occupation Permit (TOP) is a regulatory approval granted by the Building and Construction Authority (BCA) that allows owners of a newly constructed building to occupy the property before the final Certificate of Statutory Completion (CSC) is issued. For property buyers, the TOP date marks the handover of keys, the start of physical occupation, and the trigger for the ABSD remission 6-month window for couples upgrading from an existing property.

The HDB Concessionary Loan is a housing mortgage provided directly by the Housing & Development Board to eligible buyers. The interest rate is pegged at 0.1% above the prevailing CPF Ordinary Account interest rate, currently 2.6% per annum as of May 2026. The household income ceiling is $14,000 for families and $21,000 for extended families. Since 20 August 2024, the maximum Loan-to-Value (LTV) ratio has been 75%, aligned with bank loans. The downpayment can be paid using cash, CPF OA, or a combination, with no minimum cash component required.

The Enhanced CPF Housing Grant (EHG) is a means-tested housing grant for first-timer Singapore Citizen households purchasing a new BTO or resale flat. EHG amounts scale inversely with household income: from 20 August 2024, the maximum EHG for eligible first-timer families is $120,000 (raised from $80,000), and for eligible first-timer singles up to $60,000 (raised from $40,000). EHG can be used directly to reduce the flat purchase price and supports lower-to-middle income households purchasing their first home.

ABSD Remission is a refund provision by IRAS that allows married couples (with at least one Singapore Citizen spouse) to recover the full Additional Buyer's Stamp Duty paid on a jointly purchased second residential property, if they sell their first residential property within 6 months of either purchasing a completed second property or the issuance of the Temporary Occupation Permit (TOP) for an uncompleted one. Singles, unmarried couples, and entities are not eligible. The remission must be applied for within 6 months of the sale of the first property.

A Merchant Category Code (MCC) is a four-digit code assigned to a merchant by credit card networks (Visa, Mastercard, American Express) to classify the merchant's business type. Card issuers in Singapore use MCCs to determine whether a transaction qualifies for cashback, miles, or rewards points under a specific card's terms. Common MCCs include 5411 (Supermarkets), 5812 (Eating Places and Restaurants), 5814 (Fast Food), 4511 (Airlines), and 7011 (Hotels). MCC misclassification (where a merchant's actual business does not match its code) is a common reason for missed rewards.

The Singapore Overnight Rate Average (SORA) is the volume-weighted average rate of unsecured overnight interbank SGD borrowing transactions, administered by MAS. SORA has replaced SIBOR and SOR as the primary benchmark for floating-rate SGD loans, including residential mortgages and corporate facilities. Home loans typically reference a 1-month or 3-month compounded SORA, smoothing out daily volatility. SIBOR was fully discontinued by 31 December 2024, and all remaining SIBOR-linked loans have transitioned to SORA or fallback rates.

The Annual Percentage Rate (APR) represents the annualised cost of borrowing, expressed as a percentage and inclusive of the nominal interest rate plus any mandatory fees (such as processing or administrative charges). APR allows consumers to compare the true cost of different credit products on a like-for-like basis. APR is distinct from the simple "flat rate" sometimes advertised, which understates the true cost of declining-balance loans by roughly a factor of two.

The Effective Interest Rate (EIR) is the actual annualised cost of a loan or yield on a deposit, accounting for the effects of compounding within a year and any associated fees. In Singapore, MAS requires banks and licensed moneylenders to publish the EIR alongside any advertised flat or nominal rate, particularly for personal loans, instalment plans, and balance transfers. EIR is the most accurate single figure for comparing the true cost of credit products.

A Board Rate is a proprietary internal interest rate set entirely at a bank's discretion, typically used to price specific home loan packages. Unlike transparent benchmark-pegged rates such as SORA, board rates can be adjusted by the bank with limited notice (usually 30 days). Mortgages on board rates carry the risk of unexpected interest rate increases independent of market conditions. The term covers various proprietary names such as Variable Home Rate (VHR), Special Home Rate, and others.

A Foreign Transaction Fee (also called FCY fee or admin fee) is a surcharge applied by Singapore banks and card networks when a credit or debit card transaction is settled in a foreign currency, or is processed via an overseas payment gateway even when billed in SGD. Most Singapore credit cards charge a combined fee of 3% to 3.5%, comprising approximately 1% from the network (Visa, Mastercard) and 2% to 2.5% from the issuer. Multi-currency wallets and dedicated travel cards can reduce or remove this fee.

Dynamic Currency Conversion (DCC) is an option offered by overseas merchants and ATMs to bill a transaction in the cardholder's home currency (such as SGD) rather than the local currency. DCC applies an exchange rate set by the merchant's payment processor — typically 3% to 7% worse than the card network's wholesale rate and may also incur the home-issuer's Foreign Transaction Fee. Paying in the local currency and letting the card network handle the conversion is generally less expensive.

Fast And Secure Transfers (FAST) is an electronic funds transfer service enabling customers of participating banks and non-bank financial institutions in Singapore to transfer SGD funds between accounts almost instantly, 24/7. FAST handles direct account-to-account transfers using bank account numbers. The maximum per-transaction FAST limit is $200,000 for retail customers as of 2026. PayNow is built on top of the FAST network and uses proxy identifiers instead of account numbers.

PayNow is a peer-to-peer funds transfer service built on the FAST network, allowing instant SGD transfers using proxy identifiers — mobile number, NRIC or FIN, Unique Entity Number (UEN), or Singpass-linked identifier without needing the recipient's bank account number. PayNow is operated by the Association of Banks in Singapore and is integrated into nearly all retail banking apps. PayNow Corporate uses UEN-based identifiers for businesses. International PayNow linkages have been established with Thailand's PromptPay, India's UPI, and Malaysia's DuitNow.

General Interbank Recurring Order (GIRO) is an automated electronic payment system used for recurring billing in Singapore. Once a GIRO mandate is authorised, a billing organisation (such as IRAS, SP Group, telcos, or insurers) can automatically deduct billed amounts from a customer's bank account on each due date. GIRO is widely used for utility bills, IRAS property tax and income tax instalments (up to 12 interest-free months for income tax), insurance premiums, and tuition fees.

A Balance Transfer is a short-term credit facility allowing a borrower to move outstanding credit card or loan debt to a different bank account at a significantly lower promotional interest rate (often 0%) for a fixed tenure typically ranging from 3 to 12 months. Most balance transfers carry a one-time upfront processing fee of 1.5% to 5%, which gives the facility a non-zero Effective Interest Rate. After the promotional period, standard credit card interest rates of around 26% to 28% per annum typically apply.

A Cash Advance Fee is a charge imposed when a credit cardholder withdraws physical cash from an ATM using their credit card limit. In Singapore, banks typically charge an upfront fee of 6% to 8% of the withdrawn amount (with a minimum of $15 to $20), plus immediate compounding interest at over 28% per annum from the date of withdrawal — with no interest-free grace period. Cash advances are among the most expensive forms of consumer borrowing.

A Credit Limit is the maximum outstanding balance permitted on a credit card or unsecured credit facility. MAS regulations cap unsecured credit at four times monthly income per financial institution for individuals with annual income between $30,000 and $120,000. Since 1 June 2019, the industry-wide aggregate borrowing limit across all financial institutions has been 12 times monthly income. Individuals with annual income of $120,000 or more have no regulatory cap. The Credit Limit Management Measure restricts further credit increases once outstanding unsecured debt exceeds 6 times monthly income.

Credit Bureau Singapore (CBS) is the primary credit reporting agency in Singapore, jointly owned by the Association of Banks in Singapore. CBS aggregates a borrower's credit history including credit card payment behaviour, loan repayments, defaults, and applications into a credit report and a credit score ranging from 1,000 (highest risk) to 2,000 (lowest risk), grouped into Risk Grades AA through HH. Financial institutions consult the CBS report during credit application assessments. Consumers can purchase their own report directly from CBS once per year for free following any credit application.