All Central Provident Fund (CPF) members will continue to get a 2.5 per cent interest rate on their Ordinary Account savings from July 1 to September 30 this year.
2.5 per cent per annum is the legislated minimum. Interest rates of major local banks from February 1 to April 30 were below this, at 0.21 per cent per annum.
The concessionary interest rate for Housing Board (HDB) mortgage loans, which is pegged at 0.1 percentage point above the CPF Ordinary Account interest rate, will also stay the same at 2.6 per cent per annum from July 1 to September 30.
To enhance retirement savings, an extra one per cent interest will continue to be paid on the first $60,000 of a member's combined CPF balances, of which up to $20,000 can be from the Ordinary Account. The extra interest from the Ordinary Account will go into the member's Special or Retirement Account.