QuickCheck: Is the dividend rate lower for EPF Account 3?

AFTER the Employees Provident Fund (EPF) announced that it would be introducing the new Account 3 on May 11, some online users have been worried that this new account would impact the dividends they receive.

The logic they followed was that the dividend rate for Account 3 would be lower as unlike Accounts 1 and 2, contributors would be able to withdraw funds from it.

Is this true, is the dividend rate for Account 3 lower than Accounts 1 or 2?

Verdict:

FALSE - at present

Responding to their contributors' queries on social media, EPF has assured its contributors that there would be no different dividend rates between Accounts 1,2 and 3.

"Rest assured that the dividend for Account 3 (Flexible Account) will be the same as Account 1 (Retirement Account) and Account 2 (Wellbeing Account)," the Fund said on its X account.

However, EPF chief executive officer Ahmad Zulqarnain Onn said that while at present the dividends remained the same across all three accounts, this could change in the future.

"This was because, by default, liquid assets do not attract higher interest rates or dividends," he was reported as saying.

ALSO READ: Can you withdraw from your EPF Account 3 from May 11?

On Thursday (April 25), EPF launched Account 3 with members given a one-time opt-in option to transfer funds from their Account 2 to the newly launched "Akaun Fleksibel".

EPF members would have between May 11 and Aug 31 to decide whether they want to opt in.

From May 11, all EPF members under 55 will now have three accounts from that date: the Retirement Account, Wellbeing Account and Flexible Account.

Akaun Persaraan used to be known as Account 1 while Akaun Sejahtera is Account 2.

EPF members can withdraw a minimum amount of RM50 from Account 3 at any time for any purpose.

1.https://www.bernama.com/en/news.php?id=2291270

2.

@ongmalimali. < br>Rest assured that the dividend for Account 3 (Flexible Account) will be the same as Account 1 (Retirement Account) and Account 2 (Wellbeing Account). TQ. -ZHS- — KWSPMalaysia (@KWSPMalaysia) April 25, 2024