CPF ordinary accounts to continue to attract a 2.5% interest rate till end-2013

Source: The Straits Times

By: Rachel Tan

Central Provident Fund (CPF) members will continue to get a 2.5 per cent interest rate on their on Ordinary Accounts (OA) from Oct 1 to Dec 31 this year, said the CPF Board in a statement on Thursday.

The computed CPF interest rate derived from interest rates from local banks for the period May 1 to July 31 this year was 0.21 per cent per annum. As this is below the legislated minimum of 2.5 per cent per annum, the OA interest rate for this period will remain unchanged.

To enhance the retirement savings of CPF members, an extra 1 per cent interest will continue to be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA.

Extra interest from the OA will go into the member's Special or Retirement Account. The concessionary 2.6 per cent interest rate for Housing Board mortgage loans will also remain unchanged from October until the end of the year.