CPF interest rates of up to 3.5 per cent extended

CPF building in Bishan, Singapore.

Central Provident Fund (CPF) members will continue to earn interest rates of up to 3.5 per cent per annum on their Ordinary Account (OA) monies from 1 January to 31 March in 2016.

This was announced by the Central Provident Fund Board and Housing Development Board in a joint press release on Monday (30 November).

CPF members will also get up to up to 5 per cent per annum on their Special and Medisave Accounts (SMA) monies for the same period.

Furthermore, they will earn up to 5 per cent per annum on their Retirement Account (RA) monies in 2016.

These interest rates include an extra 1 per cent interest paid on the first $60,000 of a member’s combined balances, as part of the government’s efforts to enhance the retirement savings of CPF members, the CPF and HDB boards said.

CPF members aged 55 and above will also earn an additional 1 per cent extra interest on the first $30,000 of their combined balances from January 2016. As a result, CPF members aged 55 and above will earn up to 6 per cent interest per year on their retirement balances.

Other interest rates will be maintained at the same rate.

The OA interest rate will be maintained at 2.5 per cent per annum from 1 January 2016 to 31 March 2016.

The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent per annum from 1 January 2016 to 31 March 2016.

The Special and Medisave interest rates will be maintained at 4 per cent per annum from 1 January 2016 to 31 March 2016.

The RA interest rate will be maintained at 4 per cent per annum from 1 January 2016 to 31 December 2016.