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Interest Rates<p> <strong>CPF Interest Rates (01 July 2020 to 30 September 2020)</strong><br></p><p>As a CPF member, you enjoy risk-free interest on your CPF savings. Please refer to the illustration below for the current CPF interest rates. </p><p> <img class="img-responsive" alt="CPF Interest Rates" src="/Assets/common/PublishingImages/CPFInterestRate.png" /> </p> <br> <p>To enhance the retirement savings of Singaporeans, the Government pays extra interest on the first $60,000 of your combined balances (capped at $20,000 for Ordinary Account (OA)). Please refer to the details on extra interest in the table below. </p> <span style="color:#444444;"></span> <table width="100%" class="ms-rteTable-default" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" style="width:50%;"> <strong>​Age</strong></td><td class="ms-rteTableOddCol-default" style="width:50%;"> <strong>​Extra interest (capped at $20,000 for OA)</strong></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" style="width:50%;">​<span style="color:#444444;">Below 55 years old</span></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:50%;">​1% per annum on the first $60,000</td></tr><tr class="ms-rteTableFooterRow-default"><td class="ms-rteTableFooterEvenCol-default" rowspan="1" style="width:50%;"> <span style="color:#444444;">55 years old and above​</span></td><td class="ms-rteTableFooterOddCol-default" rowspan="1" style="width:50%;"> <span style="color:#444444;">2% per annum on the first $30,000, 1% per annum on the next $30,000 <br> <br>This means that you earn up to 6% on your retirement savings. ​</span></td></tr></tbody></table> <br> <p>Extra interest earned on OA savings go into your Special Account (SA) or Retirement Account (RA) to enhance your retirement savings. If you are participating in the CPF LIFE scheme, the extra interest will still be earned on your combined balances, including the savings used for CPF LIFE.</p><p> </p><h4>Interest Rate for Ordinary Account</h4><p> The interest rate on Ordinary Account (OA) monies is reviewed quarterly. OA monies earn either the legislated minimum interest of 2.5% per annum, or the 3-month average of major local banks' interest rates, whichever is higher.</p><p>The OA interest rate will be maintained at 2.5% per annum from 1 July 2020 to 30 September 2020, as the computed rate of 0.64% is lower than the legislated minimum interest rate.</p><p>​</p><h4> Interest Rate for Special and MediSave Account​<br></h4><p>The interest rate on Special and MediSave Account (SMA) monies is reviewed quarterly. SMA monies earn either the current floor interest rate of 4% per annum or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is higher. In view of the continuing low interest rate environment, the Government has decided to further extend the 4% floor rate for interest earned on all SMA monies for another year until 31 December 2020.</p><p>Consequently, the SMA interest rate will be maintained at 4% per annum from 1 July 2020 to 30 September 2020, as the computed rate of 2.71% is lower than the current floor interest rate of 4% per annum.</p><p> </p><h4>Interest Rate for Retirement Account</h4><p> The interest rate on Retirement Account (RA) monies is reviewed annually. RA monies credited each year will be invested in newly-issued Special Singapore Government Securities (SSGS) which will earn a fixed coupon rate equal to either the 12-month average yield of the 10YSGS plus 1% computed for the year, or the current floor rate of 4% per annum, whichever is higher. The interest rate earned by RA monies is the weighted average interest rate of the entire portfolio of these SSGS, which is adjusted in January each year to take into account the coupon rates payable by the new SSGS issuance. In view of the continuing low interest rate environment, the Government has decided to further extend the 4% floor rate for interest earned on the RA for another year until 31 December 2020.</p><p>The average yield of the 10YSGS plus 1% from November 2018 to October 2019 is 3.05% per annum. As this is below the current floor rate of 4% per annum, new SSGS issued in the year of 2020 will pay a fixed coupon of 4%.</p><p>Consequently, the RA interest rate from 1 January 2020 to 31 December 2020 will be maintained at 4% per annum.</p><p> </p><h4>How are CPF monies invested?</h4><p>CPF monies are invested in Special Singapore Government Securities (SSGS) which are guaranteed by the Government. This assures that CPF savings are safe, regardless of financial market conditions. The coupon rates which these SSGS earn for the CPF Board match the interest rates that CPF members receive. SSGS are non-tradable bonds issued specifically to CPF Board for the investment of CPF monies.</p><p> </p><h4>Additional Details</h4><p>Details on <a href="https://www.cpf.gov.sg/members/FAQ/schemes/Other-Matters/Others/FAQDetails?category=Other%20Matters&group=Others&folderid=13726&ajfaqid=2192040" target="_blank">extra interest</a> and <a href="https://www.cpf.gov.sg/members/FAQ/schemes/Other-Matters/Others/FAQDetails?category=Other%20Matters&group=Others&folderid=13726&ajfaqid=2192031" target="_blank">how CPF interest rates are computed</a> can be found in our FAQs.</p><p> </p><h4>Archive</h4><p> <a href="/Assets/common/Documents/InterestRate.pdf" target="_blank">CPF Interest Rat​es 1955 - 2020​</a> (PDF, 0.1MB)<br></p>Interest RatesTrueFalseTrue

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