CPF Interest Rates from 1 April 2020 to 30 June 2020

Extra interest of 1%

• All CPF members earn up to 5% on the first $60,000 of their combined CPF balances

Additional extra interest of 1%

• CPF members aged 55 and above earn up to 6% on the first $30,000 of their combined CPF balances

HDB mortgage rate from 1 April 2020 to 30 June 2020

• Remains unchanged at 2.6%

Note: All interest rates are quoted on a per annum basis.

CPF members will continue to 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 accounts (SMA) monies in the second quarter of 2020. 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) which is part of the Government’s efforts to enhance the retirement savings of CPF members.

Members aged 55 and above will also earn an additional 1% extra interest 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, members aged 55 and above will earn up to 6% interest per year on their retirement balances.

The extra interest received on the OA will go into the member’s Special Account (SA) or Retirement Account (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 or her combined balances, which includes the savings used for CPF LIFE.

Interest rate for CPF Ordinary Account and HDB mortgage rate

The OA interest rate will be maintained at 2.5% per annum from 1 April 2020 to 30 June 2020, as the computed rate of 0.64% is lower than the legislated minimum interest rate of 2.5% per annum.

Correspondingly, the concessionary interest rate for HDB mortgage loans, which is pegged at 0.1% above the OA interest rate, will remain unchanged at 2.6% per annum from 1 April 2020 to 30 June 2020.

Please refer to Annex A for the detailed computation of the OA interest rate and HDB mortgage rate.

Interest rate for Special and MediSave Accounts

The SMA interest rate will be maintained at 4% per annum from 1 April 2020 to 30 June 2020, as the computed rate of 2.91% is lower than the current interest rate floor of 4% per annum.

Please refer to Annex B for the detailed computation of the SMA interest rate.

Interest rate for Retirement Account

The RA interest rate will be maintained at 4% per annum from 1 January 2020 to 31 December 2020, as announced on 20 September 2019.

Please refer to Annex C for the detailed computation of the RA interest rate.

Public enquiries

CPF members can visit cpf.gov.sg or call the CPF Call Centre at 1800-227-1188 for enquiries.

Source: Yields of 10-Year Singapore Government Securities are obtained from www.mas.gov.sg/bonds-and-bills

Annex C

Computation of CPF RA interest rate for 1 January 2020 to 31 December 2020

RA monies credited in 2020 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 rate floor of 4% per annum, whichever is higher.

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 rate floor of 4% per annum, new SSGS issued in the year of 2020 will pay a fixed coupon of 4%.

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.