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Interest Rates<h3> <strong>INTEREST EARNED BY MEMBERS</strong></h3><p> ​</p><table border="0" cellspacing="0" style="width:100%;height:37px;"><tbody><tr><td style="width:100%;">CPF Interest Rates (01 July 2017 to 30 September 2017)<br>(reviewed quarterly)</td></tr></tbody></table><div class="cpf-alert-info"><table border="0" cellspacing="0" style="width:100%;"><tbody><tr><td align="center" style="width:50%;">Ordinary Account</td><td style="width:50%;">Up to 3.50% p.a.</td></tr><tr><td align="center" style="width:50%;">Special & Medisave Accounts</td><td style="width:50%;">Up to 5.00% p.a.</td></tr></tbody></table></div><table border="0" cellspacing="0" style="width:100%;"><tbody><tr><td style="width:100%;">CPF Interest Rate (01 January 2017 to 31 December 2017)<br>(reviewed yearly)</td></tr></tbody></table><div class="cpf-alert-info"><table class="ContentFonts" border="0" cellspacing="0" style="width:100%;"><tbody><tr><td align="center" style="width:50%;">Retirement Account</td><td style="width:50%;">Up to 5.00% p.a.</td></tr></tbody></table></div><p class="ContentFonts">Central Provident Fund (CPF) members currently earn interest rates of up to 3.5% per annum on their Ordinary Account (OA) monies, and up to 5% per annum on their Special and Medisave Account (SMA) monies. Retirement Account (RA) monies currently earn up to 5% per annum.</p><p class="ContentFonts">These interest rates include an extra 1% interest paid on the first $60,000 of a member’s combined balances (with up to $20,000 from the OA).</p><p class="ContentFonts">CPF members aged 55 and above will also earn an additional 1% extra interest on the first $30,000 of their combined balances (with up to $20,000 from the OA). As a result, CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.</p><p class="ContentFonts">This is part of the Government’s efforts to enhance the retirement savings of CPF members.</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 2017 to 30 September 2017, as the computed rate of 0.24% 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 2017.</p><p>Consequently, the SMA interest rate will be maintained at 4% per annum from 1 July 2017 to 30 September 2017, as the computed rate of 3.09% is lower than the current floor interest rate of 4% per annum.</p><p class="ContentFonts"> </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 2017.<br></p><p>The average yield of the 10YSGS plus 1% from November 2015 to October 2016 is 3.08% per annum. As this is below the current floor rate of 4% per annum, new SSGS issued in the year of 2017 will pay a fixed coupon of 4%.</p><p>Consequently, the RA interest rate from 1 January 2017 to 31 December 2017 will be maintained at 4% per annum. </p><p> </p><h4>Extra Interest</h4><p>An extra 1% interest per annum is currently paid on the first $60,000 of a member’s combined balances (with up to $20,000 from OA).</p><p>Extra interest received on monies in the OA will go into the member’s SA or RA to enhance his or her retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.</p><p> </p><h4>Additional Extra Interest</h4><p>For CPF members who are aged 55 and above, an additional 1% interest per annum will be paid on the first $30,000 of their combined balances. This is paid over and above the current extra 1% interest that is earned on the first $60,000 of their combined balances. As a result, CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.</p><p>These additional extra interest received on the OA will go into the member’s RA to enhance his or her retirement savings. If the member has participated in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.</p><p> </p><h4>Additional Details</h4><p>Please refer to our <a href="/Members/FAQ/schemes/other-matters/others/faqtab/faq17218" target="_blank">FAQ</a> for more details on extra interest.​​</p><p> Details on how CPF interest rates are computed can be found in <a href="/Members/News/news-categories-info/news-releases#8937505e-4671-445f-9bbe-2833a07e273b=%7b%22k%22%3a%22%22%7d%23Default=%7b%22k%22%3a%22%22%2c%22r%22%3a%5b%7b%22n%22%3a%22TargetYearOWSTEXT%22%2c%22t%22%3a%5b%22%5c%22%C7%82%C7%8232303135%5c%22%22%5d%2c%22o%22%3a%22and%22%2c%22k%22%3afalse%2c%22m%22%3anull%7d%5d%7d">News Releases</a>.</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>Archive</h4><p> <a href="/Assets/common/Documents/InterestRate.pdf" target="_blank">CPF Interest Rat​es 1955 - 2017​</a> (PDF, 0.1MB)<br></p>Interest RatesTrueFalseTrue

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