SINGAPORE: All Central Provident Fund (CPF) members will continue to receive at least 2.5 per cent interest on their Ordinary Account (OA), and 4 per cent interest on their Special, Medisave and Retirement Accounts from Apr 1 to Jun 30, the CPF Board said.
The computed OA interest rate – derived from the major local banks’ interest rates from November 2015 to January 2016 – worked out to be 0.23 per cent per annum. As this was below the legislated minimum of 2.5 per cent per annum, the OA interest rate will be maintained at the minimum amount, the CPF Board said in a news release on Monday (Feb 22).
Likewise, the interest rate for the Special and Medisave accounts will be maintained at the current rate of 4 per cent per annum, 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 2.47 per cent from February 2015 to January 2016, below the floor rate.
An additional 1 percentage point of interest will continue to be paid on the first S$60,000 of a CPF member's 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.
- CNA/cy