CPF interest rates to remain unchanged

CPF interest rates to remain unchanged

All Central Provident Fund members will continue to receive at least 2.5 per cent interest on their Ordinary Account, and 4 per cent interest on their Special and Medisave Accounts from Apr 1 to Jun 30, the CPF Board says.

SINGAPORE: All Central Provident Fund (CPF) members will continue to receive at least 2.5 per cent interest on their Ordinary Account, and 4 per cent interest on their Special and Medisave Accounts from Apr 1 to Jun 30, the CPF Board said on Wednesday (Feb 15).

The computed Ordinary Account interest rate - derived from the major local banks’ interest rates from November 2016 to January 2017 - was 0.24 per cent a year. As this was below the legislated minimum of 2.5 per cent, the Ordinary Account interest rate will be maintained at the minimum rate, the CPF Board said in a news release.

Likewise, the interest rate for Special and Medisave accounts will be maintained at the current rate of 4 per cent, 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 3.04 per cent from February 2016 to January 2017, below the floor rate.

An additional 1 percentage point of interest will continue to be paid on the first S$60,000 of CPF members' 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, the CPF Board said.

Source: CNA/cy

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