CPF interest rates remain unchanged for July to September period

SINGAPORE - Central Provident Fund (CPF) members will continue to earn interest rates of up to 3.5 per cent per annum for their Ordinary Accounts (OA) and up to 5 per cent per annum on the Special and Medisave Accounts in the third quarter of 2016.

These rates include an additional 1 per cent of interest paid on the first $60,000 of a member's combined balances (with up to $20,000 from their OA), which will go into a member's SA or Retirement Account.

In a joint statement on Wednesday (May 18), the CPF Board and the Housing and Development Board announced that the interest rate will be maintained at 2.5 per cent per annum for the period of Jul 1 to Sep 30 of this year.

This is because the computed rate of 0.24 per cent is lower than the legislated minimum interest rate.

As a result, the concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 per cent more than the OA interest rate, will also remain unchanged at 2.6 per cent per annum.

Meanwhile, rates for the Special and Medisave Accounts will also be maintained at 4 per cent per annum for the period.

For the Retirement Account, the interest rate also remains at 4 per cent per annum.

However, CPF members aged 55 and above will also earn another 1 per cent extra interest on the first $30,000 of their combined balances from January to this year. This is paid over and above the current extra 1 per cent that is earned on the first $60,000.

The upshot is that CPF members aged 55 and above will earn interest of up to 6 per cent per year on their retirement balances.

For further enquiries, CPF members can visit the CPF website or call the CPF call centre at 1800-227-1188.

seanyap@sph.com.sg