Proritising needs: Contributors can now opt for Account 3 for their EPF contributions.
EPF members prefer savings in Account Sejahtera for purchase of house
PETALING JAYA: Employees Provident Fund (EPF) members, especially those looking to buy a house, will only decide to opt in for an initial amount in their Akaun Fleksibel (Account 3) as a last resort.
This is primarily to preserve the balance in their Akaun Sejahtera (Account 2) for the purchase.
Christopher Tam, 32, who is purchasing a home, said he is planning to use his Akaun Sejahtera savings for renovations, which would begin in September next year.
“If I decide to go ahead with the Account 3 opt-in, then I would have reduced funds in my Akaun Sejahtera by one third,” he said.
“I will not opt in for Akaun Fleksibel, as I need the funds in Akaun Sejahtera for the renovations. I’ve done my calculations.
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“If I decide not to opt for Akaun Fleksibel, then I would have saved up some amount of money by September next year,” said the bank executive.
“Opting for Akaun Fleksibel will result in my Akaun Sejahtera savings reducing significantly, and I cannot afford that because I have already budgeted an amount for my house renovations next year.
“While the Akaun Sejahtera savings cannot be used for the 10% downpayment, I suggest prospective first-time home buyers not opt for Akaun Fleksibel, as accumulated savings in Account Sejahtera will really be useful in times of need,” he added.
Joe Hisham, 28, said his Akaun Sejahtera will definitely take a hit if he chooses to opt in for Akaun Fleksibel.
“Homebuying is a bigger priority at the moment, and I have other savings. Homebuying using Akaun Sejahtera funds also alleviates my loan repayment when added to my current savings,” said the engineer.
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However, he said he will decide whether to transfer funds into his Akaun Fleksibel from Akaun Sejahtera, depending on the rebates he gets from the housing developer.The flexible account, according to Siti Zahariah Ali, 53, is ideal for individuals like her who have enough money in Akaun Sejahtera to make a down payment on a house but are unable to withdraw it.
“I wanted to buy a bigger house as the first house I bought using my EPF funds 15 years ago has become too small for the family.
“However, I was informed by EPF that I cannot take out the money for downpayment from my second account without selling the first house.
“I informed them that the construction of the second house, which I plan to purchase from a developer, will likely take two years. Where do I stay in the meantime? Should I sell my current house? They had no answer to that.
“This is why I am applauding Account 3, as now I can transfer my EPF contributions from Akaun Sejahtera to Akaun Fleksibel so that I can withdraw to buy my second house,” she added.
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Mira Krishnan, 45, said she would choose to opt in for an initial amount, as it is similar to having a savings account in a bank.
“I think opting in for Akaun Fleksibel is a good idea, as it will be an emergency fund. But I would only use it in desperate times,” she said.
Funds in Akaun Sejahtera can be used for housing, healthcare, education and insurance.
Starting May 11, EPF members will have their accounts restructured from two to three.
Contributions will also be split in three ways: 75% will go into Akaun Persaraan (Account 1), 15% into Akaun Sejahtera, and 10% into Akaun Fleksibel.
If an individual has more than RM3,000 in their Akaun Sejahtera (Account 2) and wishes to transfer an initial amount, Akaun Fleksibel will receive a third of their balance savings, while Akaun Persaraan will receive a sixth.
The remaining balance would be retained in Akaun Sejahtera.
For those with a balance of RM1,000 and below, the full amount would be transferred to Akaun Fleksibel.
For people with a balance of more than RM1,000 and less than RM3,000, the amount transferred to Akaun Fleksibel would be RM1,000, with the remainder retained in Akaun Sejahtera.
“No distribution will be made to Akaun Persaraan for a savings balance below RM3,000,” the EPF said.
