SINGAPORE – The interest rate for the Special, MediSave and Retirement accounts of Central Provident Fund (CPF) members for the period between April 1 and June 30 has been set at 4.05 per cent a year.

This is a slight dip from the 4.08 per cent for the period from Jan 1 to March 31.

The CPF Board and Housing Board said in a joint statement on March 12 that the interest rate of the three accounts, which is pegged to the 12-month average of 10-year Singapore Government Securities plus 1 per cent, exceeded the floor rate of 4 per cent.

Manpower Minister Tan See Leng had said in Parliament on Aug 2, 2022: “If the pegged rates exceed the floor rates, members will correspondingly earn the higher interest rates on their CPF savings”.

He added that the Government had maintained a floor rate of 4 per cent for the three accounts since 2008.

The interest rate for Ordinary Account (OA) savings remains unchanged at 2.5 per cent for the second quarter of 2024.

“The Government will continue to ensure that the CPF interest rate pegs remain relevant in the prevailing operating environment while taking into consideration the longer-term outlook,” the statement said.

The concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent a year from April 1 to June 30.

CPF members below 55 years old will continue to earn an extra 1 per cent interest on the first $60,000 of their combined account balances, capped at $20,000 for the OA. 

Those aged 55 and above will continue to earn an extra 2 per cent interest on the first $30,000 of their combined balances, capped at $20,000 for the OA, and an extra 1 per cent on the next $30,000.