Due to continuing low interest rates, the 4 per cent floor rate for interest earned on monies in Special, Medisave and Retirement accounts has been extended until Dec 31 next year, the Central Provident Fund (CPF) Board and the Housing Board said in a joint press release yesterday.
The rate was set for two years from Jan 1, 2008, to December 2009. It was extended in the light of global economic conditions, and was due to expire on Dec 31 this year.
CPF members 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 monies in their Special and Medisave accounts, in the last quarter of this year.
These rates include an extra 1 per cent interest paid on the first $60,000 of a member's combined balances - part of the Government's efforts to enhance retirement savings for CPF members.
Members aged 55 and above will earn an additional 1 per cent interest on the first $30,000 of their combined balances, to be paid on top of the current extra 1 per cent interest that is earned on the first $60,000.
CPF members aged 55 and above will hence earn up to 6 per cent interest annually on their retirement balances. Anyone with inquiries can visit cpf.gov.sg or call the call centre on 1800-227-1188 for more information.