SINGAPORE: The interest rate for Central Provident Fund (CPF) Special, MediSave and Retirement accounts will increase to 4.14 per cent in the fourth quarter of 2024, up from 4.08 per cent in the previous quarter.
With the Special, MediSave and Retirement accounts pegged rate exceeding the floor rate of 4 per cent, savings in these accounts will earn 4.14 per cent from October to December, said the CPF Board and Housing Board (HDB) in a joint news release on Friday (Sep 20).
The government has also extended the 4 per cent interest rate floor for interest earned on all Special, Medisave and Retirement accounts for another year from Jan 1 to Dec 31, 2025.
“This extension of the floor rate will continue to provide CPF members with certainty on the returns of their CPF savings amidst the volatile interest rate environment,” the CPF Board and HDB said.
The interest rate for these accounts is pegged to the average yield of 10-year Singapore Government Securities plus 1 per cent.
The Ordinary Account (OA) interest rate will remain unchanged at 2.5 per cent for the fourth quarter, as the OA pegged rate remains below the floor rate of 2.5 per cent.
The concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will also 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$46,500) 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.
