SINGAPORE: The interest rate for Central Provident Fund (CPF) Special, MediSave and Retirement accounts will rise to 4.08 per cent in the third quarter of 2024.
It dipped to 4.05 per cent in the previous quarter, the first decrease after three consecutive increases.
The higher interest rate is due to an increase in the 12-month average yield of 10-year Singapore Government Securities, said the CPF Board and Housing Board (HDB) in a joint news release on Wednesday (May 29).
The interest rate for these accounts is pegged to the average yield plus 1 per cent.
The Ordinary Account (OA) interest rate will remain unchanged at 2.5 per cent for the third quarter.
The concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent during the same period.
In line with the government’s efforts to boost retirement savings for CPF members, members will continue to earn extra interest on their CPF savings.
Those below 55 years old will earn an extra 1 per cent interest on the first S$60,000 (US$44,460) of their combined balances. This interest is capped at S$20,000 for the OA.
Members aged 55 and above will receive an extra 2 per cent interest on the first S$30,000 of their combined balances, capped at S$20,000 for the OA, and an extra 1 per cent on the next S$30,000.
The extra interest earned on the OA balances will go into a member’s Special Account or Retirement Account.
“If a member is above 55 years old and joins CPF LIFE, the extra interest will be earned on their combined CPF balances, which includes the savings used for CPF LIFE,” said the CPF Board and HDB.
