2.5 per cent interest rate for CPF Ordinary Account

SINGAPORE - All Central Provident Fund (CPF) members will continue to receive an interest rate of 2.5 per cent for their Ordinary Account savings from Oct 1 to the end of this year.

The CPF Board said on Thursday that the average interest rate of local banks worked out to be only 0.21 per cent, but its members will receive the minimum 2.5 per cent interest provided by law.

The board will also continue to pay an extra 1 per cent interest for the first $60,000 of members' balances, with the extra payment going into the Special or Retirement Account to boost retirement savings.

The interest rate for HDB housing loans will also remain at 2.6 per cent for the last three months of this year.

The rate is set at 0.1 per cent above the CPF Ordinary Account interest rate to cover the Housing Board's cost of managing the loans.

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