Minimum interest rates for CPF accounts extended until end 2022

SINGAPORE – The minimum 4 per cent interest rate for Special, MediSave and Retirement Account monies has been extended until Dec 31 next year, the Central Provident Fund (CPF) Board and the Housing Board (HDB) said on Monday (Sept 27).

The rate was due to expire on Dec 31 this year.

CPF members below 55 years old will earn up to 5 per cent 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 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 2021.

CPF members aged 55 and above will be paid 6 per cent interest a year on the first $30,000 of their combined balances, with up to $20,000 from the Ordinary Account. They will also be paid 5 per cent on the next $30,000.

The extra interest on a member’s Ordinary Account will go into their Special Account or Retirement Account to enhance their retirement savings.

If a member is above 55 and participates in the CPF Life scheme, the extra interest will still be earned on their combined balances, including savings used for CPF Life.

CPF Life is an annuity scheme that provides a lifelong monthly payout that kicks off when the member becomes 65 years old.

The interest rate for Ordinary Accounts will be maintained at 2.5 per cent a year from Oct 1 to Dec 31 this year.

The concessionary interest rate for HDB housing loans, which is pegged at 0.1 percentage point above the Ordinary Account interest rate, will remain unchanged at 2.6 per cent a year during the same period.

For Special, MediSave and Retirement accounts, interest rates will also be maintained at 4 per cent a year until Dec 31 this year.