From July 1 to September 30, 2012, all Central Provident Fund (CPF) members will continue to receive a risk-free interest rate of 2.5 per cent on their Ordinary Account savings.
The computed CPF interest rate works out to be 0.16 per cent per annum This is derived from the major local banks' interest rates for the three-month period, Feburary 1 to April 20, 2012.
However, members will receive the high rate of 2.5 per cent as legislated by the CPF Act.
In addition, an extra 1% interest will continue to be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA.
The extra interest from the OA will go into the member's Special or Retirement Account to enhance his retirement savings.
The concessionary interest rate for HDB mortgage loans will remain unchanged at 2.6 per cent per annum.