The Central Provident Fund (CPF) Board has revealed that interest rates for Special and MediSave Accounts (SMA) will experience a slight increase to 4.04% in the final quarter of 2023.
Meanwhile, the interest rate for Ordinary Account (OA) will remain unchanged at 2.5% for the same period.
According to the CPF board, the slight increase is the result of a rise in the 12-month average yield of the 10-year Singapore Government Securities (10YSGS), which the interest rate for SMA is pegged to.
The interest rate for OA will remain at 2.5% for the same period, the board added. This is due to the pegged OA rate continuing to be below the floor rate of 2.5%.
Source: Google Maps
In addition, the concessionary interest rate for HDB housing loans, pegged at 0.1% above the OA interest rate, will be the same at 2.6% per annum from 1 Oct to 31 Dec.
The CPF board also stated that the Retirement Account (RA) interest rate will be 4% per annum until 31 Dec..
CPF members will also continue to earn extra interest on their savings, as part of efforts to enhance retirement savings.
Members below 55 years old will earn an extra 1% interest on the first S$60,000 of their combined balances, capped at S$20,000 for OA.
Those aged 55 and above will earn an extra 2% interest on the first S$30,000 of their combined balances, capped at S$20,000 for OA. There will also be an extra 1% on the next S$30,000.
The extra interest members receive on the OA will be in their Special Account or Retirement Account (RA).
As for citizens above 55 years old and participating in the CPF LIFE scheme, they will still earn the extra interest on their combined balances. This will include the savings used for CPF LIFE.
The government will also be extending the maintenance of a 4% interest rate floor for Special, MediSave and Retirement Accounts for another year from 1 Jan to 31 Dec 2024.
This, they said, assures certainty for CPF members in the current interest rate environment.
“The SMRA rates will continue to be reviewed regularly and CPF members will earn the higher of the floor or pegged rate,” the CPF board added.
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Featured image adapted from Google Maps.
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