CPF Ordinary Account interest rate to stay at 2.5% from April 1 to June 30
Published on Feb 18, 2013 12:07 PM
The interest rate for Ordinary Account (OA) savings in the Central Provident Fund (CPF) will remain at 2.5 per cent from April 1 to June 30 this year, the CPF Board said on Monday.
The computed CPF interest rate, derived from the major local banks' rates from Nov 1 2012 to Jan 31 this year, was only 0.21 per cent a year - below the legislated minimum of 2.5 per cent a year.
An extra 1 per cent interest will still be paid on the first $60,000 for combined balances, including up to $20,000 from the OA. The extra interest from the OA will go into the member's Special or Retirement Account.
The concessionary interest rate for Housing Board mortgage loans, which is pegged to the interest rate for OA, will also remain at 2.6 per cent per year from April 1 to June 30 2013.