Published Date: 22 Feb 2016
Central Provident Fund (CPF) members will continue to earn interest rates of up to 3.5% per annum on their Ordinary Account (OA) monies, and up to 5% per annum on their Special and Medisave Accounts (SMA) monies in the second quarter of 2016. These interest rates include an extra 1% interest paid on the first $60,000 of a member’s combined balances (with up to $20,000 from the OA) which is part of the Government’s efforts to enhance the retirement savings of CPF members.
CPF members aged 55 and above will also earn an additional 1% extra interest on the first $30,000 of their combined balances from January 2016. This is paid over and above the current extra 1% interest that is earned on the first $60,000 of their combined balances. As a result, CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.
The extra interest received on the OA will go into the member’s SA or Retirement Account to enhance his or her retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.
Interest Rate for Ordinary Account and HDB Mortgage Rate
The OA interest rate will be maintained at 2.5% per annum from 1 April 2016 to 30 June 2016, as the computed rate of 0.23% is lower than the legislated minimum interest rate.
Correspondingly, the concessionary interest rate for HDB mortgage loans, which is pegged at 0.1% above the OA interest rate, will remain unchanged at 2.6% per annum from 1 April 2016 to 30 June 2016.
Please refer to Annex A for the detailed computation of the OA interest rate and HDB mortgage rate.
Interest Rate for Special and Medisave Accounts
The SMA interest rate will be maintained at 4% per annum from 1 April 2016 to 30 June 2016, as the computed rate of 3.47% is lower than the current floor interest rate of 4% per annum.
Please refer to Annex B for the detailed computation of the SMA interest rate.
Interest Rate for Retirement Account
The RA interest rate will be maintained at 4% per annum from 1 January 2016 to 31 December 2016, as announced on 30 November 2015.
Please refer to Annex C for the detailed computation of the RA interest rate.
CPF members can visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188 for enquiries.