Just an update here. There would be some changes to the investment scheme for CPF. Most notable is the fact that the first $20k in your ordinary account can't be used for investment anymore with effect from April 2008. However, any current standing instructions would not be affected.
For more information, you can refer to Ministerial Statement on CPF reforms
If you currently have any regular savings plan for your CPF-OA even though your CPF-OA does not have the minimum amount of $20k, you will not be affected by the rule. This means that, for example, if you currently have $10k in your CPF-OA and you manage to sign up for a regular savings plan to invest in a unit trust for $10k initial sum and $5k annually (Assuming your yearly contribution to your OA is $5k), this means that even though you do not have $20k minimum in your OA, there will still be deduction of $5k from your OA for the regular savings plan.
Of course, the first $20k in your CPF-OA will earn an additional 1% interest based on the prevailing interest rate that is tagged to some bond or T-bills returns.
Glossary of terms:
CPF-OA -> CPF Ordinary Account
T-bills -> Treasury Bills
