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CPF members to continue getting 2.5 per cent interest rate on ordinary accounts from April 1 to June 30

Published on Feb 19, 2014 1:39 PM
 

All Central Provident Fund (CPF) members will continue to have a 2.5 per cent risk-free interest rate on their ordinary account savings from April 1 to June 30 this year.

"The computed CPF interest rate, derived from the major local banks' interest rates for the three-month period, November 2013 to January 2014, worked out to be 0.21 per cent per annum," said the CPF Board in a joint media release with the Housing Development Board (HDB). "As this is below the legislated minimum of 2.50 per cent per annum, the ordinary account interest rate for April 1 to June 30 this year will remain unchanged at 2.50 per cent per annum."

An extra 1 per cent interest will continue to be paid for the first $60,000 of a member's combined balances for up to $20,000 from the ordinary account. This is to "enhance the retirement savings of CPF members", said the joint media release. The extra interest from the ordinary account will go into the member's special or retirement account.

The concessionary interest rate for the HDB's mortgage loans will also remain unchanged at 2.6 per cent per annum from April 1 to June 30 this year. The concessionary interest rate is pegged at 0.1 percentage point above the CPF interest rate for the ordinary account.