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Singapore

 

CPF Ordinary Account interest rate stays at 2.5 per cent from July 1 to Sep 30

Published on May 21, 2014 12:06 PM
 
Central Provident Fund (CPF) members will continue to get a risk-free interest rate of 2.5 per cent per annum on their Ordinary Account savings from July 1 to Sept 30, the CPF Board and the Housing Board said in a statement on Wednesday. -- ST FILE PHOTO

SINGAPORE - Central Provident Fund (CPF) members will continue to get a risk-free interest rate of 2.5 per cent per annum on their Ordinary Account savings from July 1 to Sept 30, the CPF Board and the Housing Board said in a statement on Wednesday.

This is because the computed CPF interest rate, derived from the major local banks' interest rates from February to April, was 0.21 per cent - below the legislated minimum of 2.5 per cent.

An extra 1 per cent interest will also continue to be paid on the first $60,000 of a CPF member's combined balances in their Medisave, Special, Retirement and Ordinary Accounts, of which up to $20,000 can be from the Ordinary Account. This extra interest will go into the Special or Retirement Account.

The concessionary interest rate for HDB mortgage loans will stay at 2.6 per cent, as it is pegged at 0.1 percentage points above the CPF Ordinary Account interest rate.

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