Singapore – Central Provident Fund (CPF) interest rates will remain unchanged in the second quarter of 2022, the Housing Board and CPF Board said on Friday (Feb 11).
“For the second quarter of 2022, from Apr 1 to Jun 30, CPF members under 55 years old will continue to earn interest at up to 3.5 per cent per annum on their Ordinary Account (OA) and up to 5 per cent per annum on their Special and MediSave Account monies,” the CPF Board in a news release.
These interest rates include an extra 1 per cent interest paid on the first S$60,000 of a member’s combined balances, capped at $20,000 for the Ordinary Account.
For members who are 55 or older, an extra 2 per cent interest is paid on the first S$30,000 of these combined balances (capped at S$20,000 for the Ordinary Account) and an extra 1 per cent on the next S$30,000, said CPF Board.
“This means that they will earn up to 6 per cent interest per annum on their retirement balances.”
The extra interest paid to CPF members is part of the government’s efforts to enhance the retirement savings for CPF members.
Meanwhile, the extra interest received on the Ordinary Account will go into the member’s Special Account or Retirement Account (RA) to enhance their retirement savings.
Furthermore, if a member is above 55 years old and participates in the CPF Life scheme, the extra interest will still be earned on their combined balances, which includes the savings used for CPF LIFE.
CPF LIFE provides a lifelong monthly payout to members beginning at 65 years old.
From Apr 1 to Jun 30, 2022, the Ordinary Account’s yearly floor rate will be maintained at 2.5 per cent, while the floor rate for the Special and MediSave accounts will continue at 4 per cent per annum.
The concessionary interest rate for HDB housing loans, currently pegged at 0.1 per cent above the interest rate paid on the Ordinary Account, will also remain unchanged at 2.6 per cent per annum.
The Retirement Account interest rates will continue at 4 per cent per annum from Jan 1, 2022, to Dec 31, 2022.
More details on the interest rates and how they are computed can be found here.
CPF members can visit cpf.gov.sg or contact CPF Board through cpf.gov.sg/writetous for more information./TISG
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