SINGAPORE: The interest rates for Central Provident Fund (CPF) accounts will remain unchanged for the second quarter of this year, the CPF Board and Housing and Development Board (HDB) announced on Friday (Feb 11).
From Apr 1 to Jun 30, CPF members below 55 will continue to earn interest rates of up to 3.5 per cent per year on their Ordinary Account money, and up to 5 per cent per year on their Special and MediSave Account money.
These interest rates include an extra 1 per cent paid on the first S$60,000 of a person's combined balances.
For those aged 55 and above, the Government pays an extra 2 per cent interest on the first S$30,000 of their combined balances, capped at S$20,000 for Ordinary Accounts. The Government will also pay an extra 1 per cent on the next S$30,000.
This means they will earn up to 6 per cent interest per year on their retirement balances, said CPF Board and HDB.
"The extra interest paid to CPF members is part of the Government’s efforts to enhance the retirement savings for CPF members," they added.
Extra interest received on the Ordinary Account will go to the person's Special Account or Retirement Account.
If the person is above 55 and takes part in the CPF Life scheme, the extra interest will still be earned on their combined balances, which includes savings used for CPF Life.
The Ordinary Account interest rate will be maintained at 2.5 per cent per year, which means the concessionary interest rate for HDB housing loans - pegged at 0.1 per cent above the Ordinary Account interest rate - will still be 2.6 per cent per annum.
The prevailing interest rate of 4 per cent will be maintained for Special and MediSave accounts in the second quarter of 2022, and until the end of the year for Retirement Accounts.