SINGAPORE: The Central Provident Fund (CPF) has announced that its interest rates for the second quarter of the year will remain unchanged, providing continued stability for members’ savings.
According to a recent Singapore Business Review report, the Ordinary Account (OA) interest rate will continue at the current floor rate of 2.5% per annum, as the pegged rate remains below this threshold.
Similarly, the interest rates for the Special, MediSave, and Retirement Accounts (SMRA) will remain at 4% per annum, as the rate linked to the 12-month average yield of 10-year Singapore Government Securities (10YSGS), plus 1%, also stays below the floor rate.
In terms of housing loans, the HDB concessionary interest rate, which is set 0.1% higher than the OA rate, will remain steady at 2.6% per annum for the same period.
CPF members under 55 will continue to earn an additional 1% interest on the first $60,000 of their combined CPF balances, with a cap of $20,000 for the OA. Those aged 55 and above will earn an extra 2% interest on the first $30,000 of their combined CPF balances and an additional 1% on the next $30,000, with the OA cap also set at $20,000.
The extra interest earned on OA balances will be credited to the member’s Special Account or Retirement Account.
Members aged 55 and above who participate in the CPF LIFE scheme will still earn the extra interest on their combined CPF balances. This includes the savings used for CPF LIFE.
These interest rates continue to reflect the government’s commitment to ensuring that CPF members’ savings grow steadily, providing a reliable foundation for retirement, healthcare, and housing needs.