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 October 2009 to 31 December 2009. The computed CPF interest rate derived from the major local banks’ interest rates for the three-month period, 1 May 2009 to 31 July 2009, worked out to be 0.44 % 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 October 2009 to 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.