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SINGAPORE – The 4 percent minimum rate for accrued interest on all Special Account, Medisave and Retirement funds was extended for one more year until December 31, 2021, said the Housing Board and Central Fund Board Forecast on Friday (September 25).
It should have expired on December 31 of this year.
CPF members under the age of 55 will be paid an additional 1 percent interest on the first $ 60,000 of their combined balances, with up to $ 20,000 from the Ordinary Account.
They will continue to earn interest rates of up to 3.5 percent per year on the money in your Ordinary Account and up to 5 percent per year on the money in your Special Accounts and Medisave in the last quarter of this year.
Meanwhile, CPF members age 55 and older will earn an additional 2 percent interest on the first $ 30,000 of their combined balances, with up to $ 20,000 from the Ordinary Account and an additional 1% on the next $ 30,000.
As a result, members age 55 and older will earn up to 6 percent annual interest on their retirement balances.
The additional interest on a member’s Ordinary Account will go to the Special Account or Retirement Account to enhance retirement savings.
If a member is over the age of 55 and participates in the CPF Life plan, additional interest will continue to be earned on their combined balances, including savings used for CPF Life.
CPF Life is an annuity plan that provides a monthly payment for life that begins when the member turns 65.
Meanwhile, the interest rate for the Ordinary Account will remain at 2.5 percent per annum from October 1 to December 31.
Consequently, the concessional interest rate for HDB’s mortgage loans, which is set at 0.1% above the Ordinary Account interest rate, will remain unchanged at 2.6% per annum during the same period.
Interest rates on Special Accounts and Medisave will also remain at 4 percent per annum during the last quarter of this year.
The interest rate of the Retirement Account will remain at 4 percent per annum until December 31.
CPF members with questions can visit cpf.gov.sg or call the CPF call center at 1800-227-1188.
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