SINGAPORE – The 4 per cent floor rate for interest earned on all Special, Medisave and Retirement Account (SMRA) monies has been extended for another year until Dec 31, 2020, said the Housing Board (HDB) and Central Provident Fund (CPF) Board in a joint statement on Friday (Sept 20).
Before the extension, the current 4 per cent floor rate was due to expire on Dec 31 this year.
CPF members will continue to earn interest rates of up to 3.5 per cent a year on their Ordinary Account monies, and up to 5 per cent a year on their Special and Medisave accounts monies in the last quarter of this year, the statement said.
These interest rates include an extra 1 per cent interest paid on the first $60,000 of a member’s combined balances, which is part of the government’s efforts to enhance the retirement savings of CPF members. Up to $20,000 of this $60,000 comes from a member’s Ordinary Account.
CPF members aged 55 and above will also earn an additional 1 per cent interest on the first $30,000 of their combined balances.
This is paid over and above the current 1 per cent extra interest that is earned on the first $60,000 of their combined balances.
As a result, members aged 55 and above will earn up to 6 per cent interest a year on their retirement balances.
The extra interest on a member’s Ordinary Account will go into the Special Account or Retirement Account to enhance retirement savings.
Meanwhile, the interest rate for Ordinary Accounts will be maintained at 2.5 per cent a year from Oct 1 to Dec 31, 2019.
Correspondingly, the concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 per cent above the Ordinary Account interest rate, will remain unchanged at 2.6 per cent a year during the same period.
The Special and Medisave accounts’ interest rates will also be maintained at 4 per cent a year for the last quarter of 2019.
The interest rate for the Retirement Account remains at 4 per cent a year from Jan 1 to Dec 31, 2019, which was announced last September.
CPF members who have questions may visit cpf.gov.sg or call the CPF call centre on 1800-227-1188.