Interest rate for OA savings and HDB mortgage loan unchanged

The CPF Board will continue to pay 2.5 per cent interest per annum for members' savings in their ordinary account (OA) from 1 Oct to 31 Dec this year.

The concessionary interest rate for HDB mortgage loan - pegged at 0.1 percentage point above the OA CPF interest rate - during the three-month period will also remain unchanged at 2.6 per cent per annum.

Although the computed CPF interest rate derived from the major local banks' interest rates from 1 May to 31 July this year worked out to be 0.44 % per annum, the minimum CPF interest rate of 2.5 per cent will be paid, in accordance to the CPF Act.

Interest Rate For Special, Medisave & Retirement Accounts (SMRA)

The SMRA interest rate for Oct to Dec will be announced in September this year after the average yield of the 10-year Singapore Government Security (10YSGS) is computed.

To help members adjust to this floating rate, the 4% floor for the SMRA rate will be maintained till 31 December 2009.

Extra 1 per cent interest to go into Special or Retirement Account

In addition, an extra 1 per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA. The extra interest will go into the member's Special or Retirement Account to enhance his retirement savings.

Members with enquiries may call the CPF Call Centre on 1800-227 1188