CPF interest rate rises to 4.08% for Special, MediSave, and Retirement accounts

SINGAPORE: The Central Provident Fund (CPF) interest rate will be slightly higher for the Special, MediSave, and Retirement accounts.

The Straits Times reports that the interest rate for these accounts will be 4.08% per annum from July 1 to Sept 30, 2024. This is a slight increase from the previous quarter’s rate of 4.05%.

This change marks a return to the rate in the first quarter of 2024.

In a joint statement on May 29, the CPF Board and the Housing and Development Board (HDB) explained that the increase is due to a 12-month average yield of 10-year Singapore Government Securities.

The interest rate for these accounts is pegged to the average yield plus 1%. All interest rates mentioned are quoted on a per-annual basis.

Meanwhile, the interest rate for Ordinary Account (OA) savings will remain at 2.5% for the third quarter of 2024. This rate stays unchanged because the OA’s pegged rate is below the floor rate of 2.5%.

Correspondingly, the concessionary interest rate for HDB housing loans will also stay the same at 2.6% in the third quarter. This loan rate is pegged at 0.1% above the OA interest rate.

CPF members will continue benefiting from additional interest based on age and account balances.

Members under 55 will earn an extra 1% interest on the first S$60,000 of their combined account balances, with a cap of S$20,000 for the OA.

Those aged 55 and above will earn an additional 2% interest on the first S$30,000 of their combined balances, also capped at S$20,000 for the OA and an additional 1% on the next S$30,000. /TISG

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