CPF interest rates from 1 October 2015 to 31 December 2015
- Up to 3.5% per annum on the Ordinary Account
- Up to 5% per annum on the Special, MediSave and Retirement Accounts
HDB mortgage rate from 1 October 2015 to 31 December 2015
- Remains unchanged at 2.6% per annum
In view of the continuing low interest rate environment, the Government has decided to further extend the 4% floor rate for interest earned on all SMRA monies for another year until 31 December 2016.
Since 1 January 2008, savings in the SMRA have been invested in Special Singapore Government Securities (SSGS) which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. This is a market-based rate for instruments of comparable risk and duration, and will ensure that members receive fair and reasonable interest rates. To help members cope with the transition, the Government had committed to providing a 4% floor rate for SMRA interest for two years up to December 2009. This was subsequently extended in light of global economic conditions and the fact that interest rates had been exceptionally low. The 4% floor rate is currently due to expire on 31 December 2015.
Central Provident Fund (CPF) members will continue to earn interest rates of up to 3.5% per annum on their Ordinary Account (OA) monies, and up to 5% per annum on their Special, Medisave and Retirement Accounts (SMRA) monies in the fourth quarter of 2015. These interest rates include an additional 1% interest paid on the first $60,000 of a member's combined balances (with up to $20,000 from the OA) which is part of the Government's efforts to enhance the retirement savings of CPF members.
From 1 January 2016, CPF members aged 55 and older will earn an additional 1% extra interest on the first $30,000 of their combined balances. This is paid over and above the current extra 1% interest that is earned on the first $60,000 of their combined balances. As a result, CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.
The extra interest received on the OA will go into the member's SA or RA to enhance his or her retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.
Interest rate for Ordinary Account and HDB mortgage rate
The OA interest rate will be maintained at 2.5% per annum from 1 October 2015 to 31 December 2015, as the computed rate of 0.21% is lower than the legislated minimum interest rate.
Correspondingly, the concessionary interest rate for HDB mortgage loans, which is pegged at 0.1% above the OA interest rate, will remain unchanged at 2.6% per annum from 1 October 2015 to 31 December 2015.
Please refer to Annex A for the detailed computation of the OA interest rate and HDB mortgage rate.
Interest rate for Special and MediSave accounts
The SMA interest rate will be maintained at 4% per annum from 1 October 2015 to 31 December 2015, as the computed rate of 3.33% is lower than the current floor interest rate.
Please refer to Annex B for the detailed computation of the SMA interest rate.
Interest rate for Retirement Account
The RA interest rate will be maintained at 4% per annum from 1 January 2015 to 31 December 2015, as announced on 25 November 2014.
Please refer to Annex C for the detailed computation of the RA interest rate.
Public enquiries
CPF members can visit cpf.gov.sg or call the CPF Call Centre at 1800-227-1188 for enquiries.
