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CPF ordinary rate stays at 2.5%
Posted: 16 May 2009 0728 hrs
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SINGAPORE: CPF members will continue to earn 2.5 per cent on their Ordinary Accounts from July 1 to Sept 30, even as the computed rate derived from the major local banks' interest rates for the three-month period works out to 0.56 per cent.
The higher rate will be paid in accordance with the CPF Act, which stipulates a minimum of 2.5 per cent.
The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the CPF Ordinary Account interest rate, will remain unchanged at 2.6 per cent.
The prevailing CPF interest rate for Special, Medisave and Retirement Accounts is 4 per cent, based on the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1 per cent.
To help members adjust to a floating rate mechanism based on the 10YSGS, the 4 per cent floor will be maintained till the end of the year.
In addition, an extra 1 per cent will be paid on the first S$60,000 of a member's combined balances, with up to S$20,000 from the Ordinary Account.
- TODAY/so
CPF ordinary rate stays at 2.5%
Posted: 16 May 2009 0728 hrs
Photos 1 of 1
SINGAPORE: CPF members will continue to earn 2.5 per cent on their Ordinary Accounts from July 1 to Sept 30, even as the computed rate derived from the major local banks' interest rates for the three-month period works out to 0.56 per cent.
The higher rate will be paid in accordance with the CPF Act, which stipulates a minimum of 2.5 per cent.
The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the CPF Ordinary Account interest rate, will remain unchanged at 2.6 per cent.
The prevailing CPF interest rate for Special, Medisave and Retirement Accounts is 4 per cent, based on the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1 per cent.
To help members adjust to a floating rate mechanism based on the 10YSGS, the 4 per cent floor will be maintained till the end of the year.
In addition, an extra 1 per cent will be paid on the first S$60,000 of a member's combined balances, with up to S$20,000 from the Ordinary Account.
- TODAY/so
