CPF Ordinary Account interest rate to remain at 2.5%

CPF Ordinary Account interest rate to remain at 2.5%

SINGAPORE - All CPF members will continue to receive a risk-free interest rate of 2.5 per cent for savings in their Ordinary Accounts savings from April to June this year.

The Central Provident Fund (CPF) board also said that the concessionary interest rate for HDB mortgage loans will remain unchanged at 2.60 per cent per annum.

More details are available in the press release below:

CPF members receive 2.5 per cent interest rate on Ordinary Accounts from April 1, 2013, to June 30, 2013

Interest Rate For Ordinary Account (OA)

All CPF members will continue to receive a risk-free interest rate of 2.5 per cent on their Ordinary Account savings from April 1 to June 30.

The computed CPF interest rate, derived from the major local banks' interest rates for the three-month period, November 1, 2012, to Jan 31, 2013, worked out to be 0.21 per cent per annum.

As this is below the legislated minimum of 2.50 per cent per annum, the OA interest rate for April 2013 to June 2013 will remain unchanged at the legislated minimum of 2.50 per cent per annum.

Extra Interest of 1 per cent

In addition, an extra 1 per cent 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.

HDB's Mortgage Rate

The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the CPF interest rate for the OA, will remain unchanged at 2.60 per cent per annum from April 1, 2013, to June 30, 2013.

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