SINGAPORE: All Central Provident Fund (CPF) members will
continue to receive at least 2.5 per cent interest on their
Ordinary Account (OA), and 4 per cent interest on their Special,
Medisave and Retirement Accounts from Apr 1 to Jun 30, the CPF
Board said.
The computed OA interest rate – derived from the major local
banks’ interest rates from November 2015 to January 2016 – worked
out to be 0.23 per cent per annum. As this was below the legislated
minimum of 2.5 per cent per annum, the OA interest rate will be
maintained at the minimum amount, the CPF Board said in a news
release on Monday (Feb 22).
Likewise, the interest rate for the Special and Medisave
accounts will be maintained at the current rate of 4 per cent per
annum, as the computed interest rate – derived from the 12-month
average yield of 10-year Singapore Government Securities plus 1 per
cent – worked out to be 2.47 per cent from February 2015 to January
2016, below the floor rate.
An additional 1 percentage point of interest will continue to be
paid on the first S$60,000 of a CPF member's combined balances in
their Medisave, Special, Retirement and Ordinary Accounts, of which
up to S$20,000 can be from the Ordinary Account.
The concessionary interest rate for HDB mortgage loans, which is
pegged at 0.1 percentage point above the Ordinary Account interest
rate, will remain unchanged at 2.6 per cent, the CPF Board
said.
- CNA/cy