The interest rates that Central Provident Fund (CPF) members can earn on their various accounts will remain unchanged in the second quarter, said the CPF Board and Housing Board in a joint statement yesterday.
The Ordinary Account (OA) interest rate will be maintained at 2.5 per cent per annum from April 1 to June 30.
The concessionary interest rate for HDB mortgage loans, pegged at 0.1 percentage point above the OA interest rate, will remain unchanged at 2.6 per cent per annum in the same period.
CPF members will continue to earn interest rates of up to 3.5 per cent per year on their OA funds and up to 5 per cent per year on their Special and Medisave accounts from April to June.
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 (RA) to boost their retirement savings.
The interest rates for Special and Medisave accounts will be maintained at 4 per cent per year from April 1 to June 30.
The RA interest rate will be maintained at 4 per cent per annum during the second quarter, as announced in September last year.