SINGAPORE - The interest rates that Central Provident Fund (CPF) members can earn on their various accounts will remain unchanged in the first quarter of 2020, according to a CPF Board and Housing Board joint statement on Tuesday (Nov 19).
CPF members will continue to earn interest rates of up to 3.5 per cent per year on their Ordinary Account (OA) monies and up to 5 per cent per year on their Special and MediSave accounts monies from January to March 2020.
The interest rates include an extra 1 per cent paid on the first $60,000 of a member's combined balances, which is part of the Government's efforts to enhance retirement savings of CPF members.
Those aged 55 and above will also earn an additional 1 per cent on the first $30,000 of their combined balances.
This is paid over and above the current extra 1 per cent interest that is earned on the first $60,000 of their combined balances.
As a result of the additional interest, members aged 55 and above will earn up to 6 per cent interest per year on their retirement balances.
The extra interest received on the OA will go into the members' Special Account or Retirement Account to boost their retirement savings.
Those who are 55 and above and participate in the CPF Life scheme will also earn extra interest on their combined balances, which includes savings used for CPF Life.
The OA interest rate will be maintained at 2.5 per cent per annum from Jan 1 to March 31, 2020.
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 Jan 1 to March 31 next year.
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 per annum during the first quarter of 2020 as announced in September this year.
From Jan 1, the Basic Healthcare Sum for members below 65 will be raised from $57,200 to $60,000.
Those who turn 65 in 2020 will have the sum fixed at $60,000, which will not be changed.
Those who are 66 and above in 2020 will see no changes to their cohort's Basic Healthcare Sum.
The Basic Healthcare Sum is the estimated savings required for basic subsidised healthcare needs in old age.
It is adjusted yearly for members below 65 years of age to keep pace with the growth in Medisave withdrawals. Once members reach the age of 65, the sum will be fixed for the rest of their lives.