Interest of 4% on CPF Special, Medisave and Retirement accounts extended

Central Provident Fund (CPF) members will continue to earn at least 4 per cent interest per year on their Special, Medisave and Retirement Account savings for another year until Dec 31, 2015. -- PHOTO: ST FILE
Central Provident Fund (CPF) members will continue to earn at least 4 per cent interest per year on their Special, Medisave and Retirement Account savings for another year until Dec 31, 2015. -- PHOTO: ST FILE

SINGAPORE - Central Provident Fund (CPF) members will continue to earn at least 4 per cent interest per year on their Special, Medisave and Retirement Account savings for another year until Dec 31, 2015.

This is in view of the "continuing low interest rate environment", said CPF and the Housing Board (HDB) in a joint press release on Thursday.

As the Government pays an additional 1 percentage point of interest on the first $60,000 of each member's combined CPF savings, any monies from the Special, Medisave and Retirement Accounts counted within this balance will earn interest of at least 5 per cent.

This interest rate floor was originally provided to help CPF members cope with the transition towards market-based interest rates on their savings starting in 2008.

The floor was meant to expire in December 2009, but was extended due to poor global economic conditions and ultra-low interest rates at the time.

Savings in CPF members' Ordinary Accounts will continue to earn at least 2.5 per cent interest and the concessionary rate for HDB mortgage loans will remain unchanged at 2.6 per cent per year.