CPF ordinary accounts to continue to attract a 2.5% interest rate till end-2013

PHOTO: CPF ordinary accounts to continue to attract a 2.5% interest rate till end-2013

SINGAPORE - Central Provident Fund (CPF) members will continue to get a 2.5 per cent interest rate on their on Ordinary Accounts (OA) from Oct 1 to Dec 31 this year, said the CPF Board in a statement on Thursday.


Get the full story from The Straits Times.

Here is the press release from CPF Board:

Interest Rate For Ordinary Account (OA)

All CPF members will continue to enjoy a risk-free interest rate of 2.5 per cent on their Ordinary Account savings from October 1, 2013 to December 31, 2013.

The computed CPF interest rate, derived from the major local banks' interest rates for the three-month period, May 1 2013 to July 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 October 2013 to December 2013 will remain unchanged at 2.50 per cent per annum.

Extra Interest of 1 per cent

As part of our efforts to enhance the retirement savings of CPF members, 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.

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 October 1, 2013 to December 31, 2013.