The interest rates that Central Provident Fund (CPF) members can earn on their various accounts will remain unchanged in the third quarter of this year, the Housing Board and CPF Board said yesterday.

From July to September, 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 interest rates include the extra 1 per cent interest on the first $60,000 of their combined balances, capped at $20,000 for the Ordinary Account.

CPF members aged 55 and above will continue earning up to 6 per cent interest a year on their combined balances.

This includes the extra 2 per cent interest on the first $30,000 of their combined balances, capped at $20,000 for the Ordinary Account, and an extra 1 per cent on the next $30,000.

The extra interest paid to CPF members is part of the Government’s efforts to enhance the retirement savings of CPF members.

The extra interest on the Ordinary Account will go into members’ Special Account or Retirement Account.

For CPF members above 55 years old and participating in 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 floor rate of 2.5 per cent interest a year 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 25 last year.

The concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the Ordinary Account interest rate, remains at 2.6 per cent a year.

For inquiries, go to the CPF website or call 1800-227-1188.



Source Google News