SINGAPORE - The 4 per cent floor rate for interest earned on all Special, Medisave and Retirement Accounts monies has been extended for another year until Dec 31, 2021, said the Housing Board and Central Provident Fund Board on Friday (Sept 25).
It was to have expired on Dec 31 this year.
CPF members below 55 will be paid an extra 1 per cent interest on the first $60,000 of their combined balances, with up to $20,000 from the Ordinary Account.
They will continue to earn interest rates of up to 3.5 per cent a year on their Ordinary Account monies, and up to 5 per cent a year on their Special and Medisave Accounts monies in the last quarter of this year.
Meanwhile, CPF members aged 55 and above will earn an extra 2 per cent interest on the first $30,000 of their combined balances, with up to $20,000 from the Ordinary Account, and an extra 1 per cent on the next $30,000.
As a result, members aged 55 and above will earn up to 6 per cent interest per year on their retirement balances.
The extra interest on a member's Ordinary Account will go into the Special Account or Retirement Account to enhance retirement savings.
If a member is above 55 and participates in the CPF Life scheme, the extra interest will still be earned on his combined balances, including savings used for CPF Life.
CPF Life is an annuity scheme that provides a lifelong monthly payout that kicks off when the member becomes 65 years old.
Meanwhile, the interest rate for the Ordinary Account will be maintained at 2.5 per cent a year from Oct 1 to Dec 31.
Correspondingly, 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 a year during the same period.
The Special and Medisave Accounts' interest rates will also be maintained at 4 per cent a year for the last quarter of this year.
The Retirement Account interest rate will be maintained at 4 per cent a year until Dec 31.
CPF members who have questions may visit cpf.gov.sg or call the CPF call centre on 1800-227-1188.