SINGAPORE: Central Provident Fund (CPF) members will continue to receive up to 3.5 per cent interest on their Ordinary Account, and up to 5 per cent interest on their Special, Medisave and Retirement Accounts from Jan 1 to Mar 31 next year.
These rates include an additional 1 per cent in interest paid on the first S$60,000 of a member’s combined balances – part of the government’s efforts to enhance the retirement savings of CPF members, the CPF Board said in a joint press release with the Housing and Development Board (HDB) on Thursday (Nov 16).
On top of this, CPF members aged 55 and above will also earn an additional 1 per cent interest on the first S$30,000 of their combined balances, said the authorities. This brings their per annum earnings on their retirement balances up to 6 per cent.
The extra interest received on the Ordinary Account will go into the members' Special Account or Retirement Account.
If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.
The concessionary interest rate for HDB mortgage loans, pegged at 0.1 per cent above the Ordinary Account interest rate, will remain unchanged at 2.6 per cent over the same period.
The only change was made in the Basic Healthcare Sum, which is adjusted yearly for members below the age of 65, in order to keep pace with the growth in Medisave withdrawals.
For those under 65, the Basic Healthcare Sum next year will be S$54,500, up from S$52,000 previously, the authorities said.
Members who turn 65 next year will have their Basic Healthcare Sum fixed at $54,500 for the rest of their lives.