CPF interest rates to remain unchanged in Q3

May 14, 201510:25 am388 views
CPF interest rates to remain unchanged in Q3
CPF interest rates to remain unchanged in Q3

SINGAPORE: All Central Provident Fund (CPF) members will continue to receive at least 2.5 per cent interest on their Ordinary Account (OA), and 4 per cent interest on their Special and Medisave Accounts from Jul 1 to Sep 31, the CPF Board said in a news release on Monday (May 13).

The Retirement Account rate is also 4 per cent, but for the whole year, as was announced on Nov 25, 2014.

The computed OA interest rate – derived from the major local banks’ interest rates from February to April 2015 – worked out to be 0.21 per cent per annum. As this was below the legislated minimum of 2.5 per cent per annum, the OA interest rate will be maintained at the minimum amount, the CPF Board said.

Likewise, the interest rate for the Special and Medisave accounts will be maintained at the current rate of 4 per cent per annum, as the computed interest rate – derived from the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent – worked out to be 3.27 per cent from July 2015 to September 2015, below the floor rate.

An additional 1 percentage point of interest will continue to be paid on the first S$60,000 of a CPF member’s combined balances in their Medisave, Special, Retirement and Ordinary Accounts, of which up to S$20,000 can be from the Ordinary Account.

The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the Ordinary Account interest rate, will remain unchanged at 2.6 per cent per annum from Jul 1 to Sep 31, 2015, the CPF Board added.

 

news source & image credits: channelnewsasia.com

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