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CPF rates maintained for Q1 2016
CENTRAL Provident Fund (CPF) rates will be maintained at current levels from Jan 1 to March 31 next year, said a joint press release from CPF Board and the Housing and Development Board.
For the Ordinary Account (OA), the legislated minimum of 2.5 per cent a year applies as the three-month average of major local banks' interest rates was 0.21 per cent from August to October this year.
The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the OA interest rate, will remain unchanged at 2.6 per cent a year for the first three months of 2016.
Special and Medisave Account monies earn the current floor interest rate of 4 per cent a year or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus one percentage point, whichever is higher.
For the first three months of 2016, the interest rate will be maintained at 4 per cent a year. The 12-month 10YSGS average yield of November 2014 to October 2015, plus one percentage point, was 3.39 per cent.
Finally, new Retirement Account monies credited in 2016, which are invested in newly-issued Special Singapore Government Securities, will earn a fixed rate of 4 per cent for the full year of 2016.
As with the above, the 4 per cent coupon is calculated thus because the comparable 12-month average of the 10YSGS plus one percentage point rate of 3.39 per cent is lower than the floor rate of 4 per cent.
The press release also reminded CPF members that there is an extra one percentage point of interest paid on the first S$60,000 of a member's combined balances, with up to S$20,000 from the OA.
CPF members aged 55 and above will also earn an additional one percentage point of interest on the first S$30,000 of their combined balances from January 2016 - as introduced in the 2015 Budget.