CPF interest rates for Special, MediSave and Retirement accounts to go up to 4.08% in Q1 2024
The interest rate for the Special and MediSave Accounts of Central Provident Fund members will increase to 4.08 per cent per annum, from 4.04 per cent, for the period from Jan 1 to March 31, 2024.
The rate hike is due to an increase in the 12-month average yield of 10-year Singapore Government Securities, which the interest rate is pegged to, said the CPF Board, Housing Board and Health Ministry in a joint statement on Dec 6.
The interest rate for the Retirement Account (RA) will also increase to 4.08 per cent, from 4 per cent, for the same period.
From 2024, the RA interest rate peg will be aligned to that of the Special and MediSave Accounts and computed quarterly instead of annually.
“This change will allow the RA interest rate to be more responsive to the prevailing interest rate environment,” said the statement.
The Ordinary Account (OA) interest rate will remain unchanged at 2.5 per cent for the same period.
“The Government will continue to ensure that the CPF interest rate pegs remain relevant in the prevailing operating environment while taking into consideration the longer-term outlook,” said the statement.
The Basic Healthcare Sum will be raised to $71,500, from $68,500, for CPF members under 65 years old from Jan 1. Those who are 66 and above in 2024 will see no change to their sum.
The sum is the estimated savings required for basic subsidised healthcare needs in old age and is adjusted yearly for members below 65 to keep pace with the growth in MediSave use.
The concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent a year from Jan 1 to March 31, 2024.
In addition, CPF members below 55 years old will continue to earn an extra 1 per cent interest on the first $60,000 of their combined account balances, capped at $20,000 for the OA.
Those aged 55 and above will continue to earn an extra 2 per cent interest on the first $30,000 of their combined balances, and an extra 1 per cent on the next $30,000, capped at $20,000 for the OA.