Minimum CPF interest rate extended until Dec 31 next year
The minimum 4 per cent interest rate for Special, MediSave and Retirement Account monies has been extended until Dec 31 next year, the Central Provident Fund (CPF) Board and the Housing Board (HDB) said yesterday.
The rate was due to expire on Dec 31 this year.
CPF members below 55 years old will earn up to 5 per cent interest on the first $60,000 of their combined balances, with up to $20,000 from the Ordinary Account.
They will continue to earn interest rates of up to 3.5 per cent a year on Ordinary Account monies, and up to 5 per cent a year on their Special and MediSave accounts monies in the last quarter of this year.
CPF members aged 55 and above will be paid 6 per cent interest a year on the first $30,000 of their combined balances, with up to $20,000 from the Ordinary Account.
They will also be paid 5 per cent on the next $30,000.
The extra interest on a member's Ordinary Account will go into their Special Account or Retirement Account to enhance their retirement savings.
If a member is above 55 and participates in the CPF Life scheme, the extra interest will still be earned on their combined balances, including savings used for CPF Life.
CPF Life is an annuity scheme that provides a lifelong monthly payout that kicks off when the member becomes 65 years old.
The interest rate for Ordinary Accounts will be maintained at 2.5 per cent a year from Oct 1 to Dec 31 this year.
The concessionary interest rate for HDB housing loans, pegged at 0.1 percentage point above the Ordinary Account interest rate, will remain unchanged at 2.6 per cent a year during the same period.