CPF interest rates to remain unchanged

November 26, 201411:44 am277 views

SINGAPORE — Central Provident Fund (CPF) interest rates for Ordinary, Special and Medisave Accounts will remain unchanged for the period Jan 1 to March 31 next year, the CPF Board announced yesterday. The Retirement Account interest rate will remain the same.

The Ordinary Account (OA) interest rate will be maintained at 2.5 per cent per annum, as the computed interest rate, which is derived from the interest rates of major local banks, worked out to 0.21 per cent — less than the legislated minimum interest rate of 2.5 per cent.

The concessionary interest rate for Housing and Development Board mortgage loans, which is pegged at 0.1 percentage points above the OA interest rate, will therefore remain unchanged at 2.6 per cent per annum from Jan 1 to March 31 next year.

Similarly, the interest rates for Special and Medisave Accounts will be maintained at 4 per cent per annum for the same period, as the computed rate of 3.4 per cent is lower than the current floor interest rate. The Retirement Account interest rate will be maintained at 4 per cent per annum from Jan 1 to Dec 31 next year.

An additional 1 per cent interest will continue to be paid on the first S$60,000 of a CPF member’s combined balances, of which up to S$20,000 will come from the OA, the CPF Board said.

 

news source & image credits: todayonline.com / mycpf.cpf.gov.sg/

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