CPF to continue with interest rates in Q1 2017

Office workers crossing the road in front of the CPF building in Robinson Road.
Office workers crossing the road in front of the CPF building in Robinson Road.ST PHOTO: JAMIE KOH

SINGAPORE - Central Provident Fund (CPF) members will continue to earn interest rates of up to 3.5 per cent per annum on their Ordinary Account monies, and up to 5 per centper annum on their Special and Medisave Accounts monies in the first quarter of 2017.

In a release on Tuesday, CPF said members will also earn up to 5 per cent per annum on their Retirement Account monies in 2017, including the extra 1 per cent interest paid on the first S$60,000 of a member's combined balances (with up to $20,000 from the OA) which is part of the Government's efforts to enhance the retirement savings of CPF members.

Members aged 55 and above will also earn an additional 1 per cent extra interest on the first S$30,000 of their combined balances from January 2016, over and above the current extra 1 per cent interest that is earned on the first S$60,000 of their combined balances. This takes the interest on their retirement balances to 6 per cent per year, the release added.

The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 per cent above the ordinary account interest rate, will remain unchanged at 2.6 per cent per annum for the quarter.

The basic healthcare sum for members above 65 years will be raised from S$49,800 to S$52,000 from Jan 1, 2017, as well as for those who turn 65 years old on the day. However, for those aged 66 years and above in 2017, the sum will remain unchanged at S$49,800. Any Medisave contributions in excess of a member's basic healthcare sum will be transferred to his other CPF accounts, the release added.