SINGAPORE: Central Provident Fund (CPF) members will continue to earn interest rates of 2.5 per cent per annum on their Ordinary Account, and 4 per cent per annum on their Special and Medisave accounts between Jan 1 and Mar 31, 2019, the CPF Board and the Housing and Development Board said in a joint press release on Friday (Nov 16).
Correspondingly, the interest rate for HDB mortgage loans will remain unchanged at 2.6 per cent per annum for the same period. This rate is pegged at 0.1 per cent above the OA interest rate.
On top of the regular interest earned, there will be an extra 1 per cent interest paid on the first S$60,000 of their combined balances, earning CPF members up to 3.5 per cent on their Ordinary Account and 5 per cent per annum on their Special and MediSave accounts.
CPF members aged 55 and above will also continue to earn an additional 1 per cent extra interest on the first S$30,000 of their combined balances. This means that they may earn up to 6 per cent interest per year on their retirement balances.
The interest for the Retirement Account, which is reviewed yearly, will also remain at 4 per cent per annum in 2019.
The cap to the MediSave Account will be raised from S$54,500 to S$57,200 for those under 65.
The sum is adjusted yearly for members below the age of 65, in order to keep pace with the growth in MediSave withdrawals.