Monday, May 18, 2009

CPF Ordinary rate stays at 2.5%

CENTRAL Provident Fund members will continue to receive 2.5 per cent a year on savings in the Ordinary Account (OA) from July 1 to Sept 30, despite the CPF Board's computed interest rate being much lower.

The board said its computed rate, derived from the rates of major local banks for the period between Feb1 and April30, works out to 0.56 per cent a year.

The higher rate of 2.5 per cent will be paid because that is the minimum specified under the CPF Act.

In the same statement, the board also announced that the concessionary interest rate for HDB mortgage loans will remain unchanged at 2.6per cent a year for the same July to September period. This rate is pegged at 0.1percentage point above the CPF interest rate for the OA.

The interest rates for Special, Medisave and Retirement accounts (SMRA) for July to September will be announced next month. The prevailing interest rate for the SMRA is 4per cent.

Source: Straits Times, 18 May 2009

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