Singapore's CPF interest rates to remain unchanged for second quarter of 2021

From April to June 2021, the 2.5 per cent floor rate for interest earned on the Ordinary Account will be maintained. - ST

SINGAPORE (The Straits Times/ANN): The interest rates that Central Provident Fund (CPF) members can earn on their various accounts will remain unchanged in the second quarter of 2021, the Housing Board and CPF Board said on Friday (Feb 19).

From April to June 2021, CPF members will continue to earn interest of up to 3.5 per cent per year on the balance in their Ordinary Account and up to 5 per cent per year in their Special and MediSave accounts.

An extra 1 per cent on the first S$60,000 of a member's combined balances will continue to be paid, with up to $20,000 from the Ordinary Account.

The additional interest rate is part of the Government's efforts to enhance the retirement savings for CPF members.

Those aged 55 and above will earn an additional 2 per cent on the first $30,000 of their combined balances, and an extra 1 per cent on the next $30,000.

With the additional interest, they can earn up to 6 per cent interest per year on their CPF retirement savings.

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

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

The annuity scheme provides a lifelong monthly payout that begins when the member turns 65 years old.

From April to June 2021, the 2.5 per cent floor rate for interest earned on the Ordinary Account will be maintained while the 4 per cent floor rate for interest earned on the Special and MediSave accounts will remain unchanged. The 4 per cent interest rate for Retirement Accounts will be maintained until Dec 31,2021.

The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the Ordinary Account interest rate, will also remain unchanged at 2.6 per cent a year during April to June 2021.- The Straits Times/Asia News Network