Dividend Chaser on 2.5% for all CPF ordinary account holders from July-Sep

(From Article)

SINGAPORE — All Central Provident Fund (CPF) members will continue to enjoy a risk-free interest of 2.5 per cent on their Ordinary Account (OA) savings from July 1 to Sep 30, the CPF Board said today (May 21).

The CPF Board says the computed interest rate, derived from the major local banks’ interest rates for the three-month period for Feb 1 to April 30, worked out to be 0.21 per cent per annum.

As this is below the legislated minimum of 2.50 per cent per annum, the OA interest rate for July to September will remain unchanged at 2.50 per cent per annum.

In addition, an extra 1 per cent interest will continue to be paid on the first S$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.

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 cent per annum from July 1 to Sept 30. CHANNEL NEWSASIA