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We update you with Singapore bank interest rates.

January 13, 2010

CPF Interest Rates

CPF Interest Rates

Current CPF interest rates are discussed today. CPF interest rates are interest rates obtained from the Central Provident Fund of Singapore. CPF is the nation's compulsory savings plan for its citizens and residents.

What are the current CPF interest rates in January, February and March 2010?

CPF Interest Rates:

CPF Interest Rates Summary

Valid for period from 1 January 2010 to 31 March 2010.

Ordinary Account = 2.5% per annum

Source: CPF Board

Interest rate news from CPF Board:

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 January 2010 to 31 March 2010. The computed CPF interest rate derived from the major local banks’ interest rates for the three-month period, 1 August 2009 to 31 October 2009, worked out to be 0.42 % 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 January to 31 March 2010.

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

Interest Rates For Special, Medisave & Retirement Accounts (SMRA)

The prevailing (October to December 2009) CPF interest rate for the Special, Medisave & Retirement Accounts is 4%. This was computed based on the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%. The interest rates for the Special Medisave and Retirement Accounts for January to March 2010 will be announced in December 2009 after the average yield of the 10YSGS is computed. To help members adjust to this floating rate, the 4% floor for the interest rates for the Special, Medisave & Retirement Accounts will be maintained till 31 December 2010.

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.

The CPF interest rate will continue to be reviewed quarterly. Improving returns on CPF savings is one of the key changes introduced to help Singaporeans improve their retirement adequacy.

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Singapore Bank Interest Rates

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