CPF members to receive 2.5% interest rate on Ordinary Accounts

The risk-free interest rate will be applicable from 1 January 2012 to 31 March 2012.

The computed CPF interest rate, derived from the major local banks’ interest rates for the three-month period, 1 August 2011 to 31 October 2011, worked out to be 0.31% per annum. However, members will receive the higher rate of 2.50% as legislated by the CPF Act.

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

HDB’s Mortgage Rate
The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the CPF interest rate for the OA, will remain unchanged at 2.60% per annum from 1 January 2012 to 31 March 2012.