CPF interest rates for July to September will remain unchanged

The interest rates that Central Provident Fund (CPF) members earn on their various accounts will remain unchanged in the third quarter, said the CPF Board and Housing Board on Friday.

CPF members aged below 55 will continue to be paid an extra 1 per cent interest on the first $60,000 of their combined balances.

They will still earn interest rates of up to 3.5 per cent a year on the balances in their Ordinary Account (OA) and up to 5 per cent a year on their Special and Medisave accounts from July 1 to Sept 30.

This means that members will be able to earn up to 5 per cent interest on the first $60,000 of their combined CPF balances.

For CPF members aged 55 and above, they will be paid an extra 2 per cent interest on the first $30,000 of their combined balances, and an extra 1 per cent on the next $30,000.

As such, they will be able to earn up to 6 per cent interest per year on the first $30,000 of their combined balances, and up to 5 per cent on the next $30,000.

The extra interest received on the OA will go into members' Special Account or Retirement Account to boost their retirement savings.

Those who are 55 and older and participate in the CPF Life scheme will also earn extra interest on their combined balances, which include savings used for CPF Life.

The OA interest rate will be maintained at 2.5 per cent per annum from July 1 to Sept 30.

The concessionary interest rate for HDB mortgage loans, pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent per annum from July 1 to Sept 30.

The interest rates for Special and Medisave accounts will be maintained at 4 per cent per year during the same period.

The Retirement Account interest rate will be maintained at 4 per cent a year until Dec 31, as announced in September last year.

Cheryl Tan

A version of this article appeared in the print edition of The Sunday Times on May 24, 2020, with the headline 'CPF interest rates for July to September will remain unchanged'. Print Edition | Subscribe