CPF ORDINARY ACCOUNT INTEREST RATE FROM 1 JULY 2009 TO 30 SEPTEMBER 2009

Interest Rate For Ordinary Account (OA)
The Board will continue to pay 2.50% interest per annum for members’ CPF savings in their OA from 1 July 2009 to 30 September 2009. The computed CPF interest rate derived from the major local banks’ interest rates for the three-month period,
1 February 2009 to 30 April 2009, worked out to be 0.56 % per annum. However, the higher rate of 2.50% will be paid as the CPF Act provides for a minimum CPF interest rate of 2.50% per annum.

HDB’s Mortgage Rate
The concessionary interest rate for HDB mortgage loan, which is pegged at 0.1 percentage point above the CPF interest rate for the Ordinary Account, will remain unchanged at 2.60% per annum from 1 July 2009 to 30 September 2009.

The detailed computations of the CPF Ordinary Account interest rate and the HDB mortgage loan interest rate are given in the Annex.

Interest Rate For Special, Medisave & Retirement Accounts (SMRA)
The prevailing (April to June 2009) CPF interest rate for SMRA is 4%. This was computed based on the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%. The SMRA interest rate for July to September 2009 will be announced in June 2009 after the average yield of the 10YSGS is computed. To help members adjust to this floating rate, the 4% floor for the SMRA rate will be maintained till 31 December 2009.

Extra Interest of 1%
In addition, an extra 1% interest will be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The extra interest from the OA will go into the member’s Special or Retirement Account to enhance his retirement savings.

(source: http://www.news.gov.sg)