CPF interest rates unchanged for 3rd quarter

The Central Provident Fund (CPF) interest rate for the Ordinary Account will remain at 2.5 per cent a year in the third quarter of this year.

From July 1 to Sept 30, the concessionary interest rate for Housing Board loans, which is pegged at 0.1 percentage point above the Ordinary Account interest rate, will remain unchanged at 2.6 per cent a year, HDB and CPF said in a joint statement yesterday.

CPF members below 55 years old will continue to earn interest rates of up to 3.5 per cent a year on their Ordinary Account and up to 5 per cent a year on their Special and MediSave accounts. These rates include the extra 1 per cent interest on the first $60,000 of their combined balances, capped at $20,000 for Ordinary Account.

Members aged 55 and above will earn an extra 2 per cent interest on the first $30,000 of their combined balances, capped at $20,000 for the Ordinary Account.

They will get an extra 1 per cent on the next $30,000. This means they will earn up to 6 per cent interest a year on their retirement balances. The extra interest is part of efforts to enhance the retirement savings of CPF members, the statement said. The extra interest on the Ordinary Account will go into the Special Account or Retirement Account.

For CPF members who are over 55 and on the CPF Life scheme, which provides a lifelong monthly payout that begins when the member turns 65 years old, the extra interest will still be earned on their combined balances, which include the savings used for CPF Life.

From July to September, the yearly floor rate of 2.5 per cent interest earned on the Ordinary Account will be maintained, as will the 4 per cent floor rate for the Special and MediSave accounts.

The 4 per cent floor rate on the Retirement Account will remain unchanged for the rest of the year, as announced on Sept 27 last year.

For more information on CPF interest rates and their computation, go to cpf.gov.sg/CPFInterestRates