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No change to CPF interest rates, HDB mortgage rate for July-September

INTEREST rates for all Central Provident Fund (CPF) accounts, along with the HDB mortgage rate, will remain the same from July 1 to Sept 30, the CPF Board and the Housing Board said on Wednesday.

The Ordinary Account (OA) interest rate will be maintained at 2.5 per cent per year. This means the interest rate for HDB mortgage loans, pegged at 0.1 per cent above the OA interest rate, will remain at 2.6 per cent per year.

Meanwhile, CPF members will continue to earn interest rates of 4 per cent per year on monies in their Special and Medisave Account (SMA) and Retirement Account (RA).

These interest rates include an extra 1 per cent interest paid on the first S$60,000 of a member’s combined balances, with up to S$20,000 from the OA. Thus, members will earn up to 3.5 per cent per year in interest on their OA, and up to 5 per cent per year on their SMA and RA.

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CPF members who are 55 years old and above will earn an additional 1 per cent extra interest on the first S$30,000 of their combined balances, with up to S$20,000 from the OA. This will be paid over and above the current extra 1 per cent interest earned on the first S$60,000 of their combined balances.

This means they will earn up to 6 per cent interest per year on their retirement balances.

The extra interest earned on the OA monies will go into the member’s Special Account (SA) or RA to enhance retirement savings.

Members who are above 55 years old and under the CPF Life scheme will still earn extra interest on their combined balances, including savings used for CPF Life.