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Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2018<br> <table width="100%" border="0" cellspacing="0" cellpadding="2"><tbody><tr bgcolor="#dddddd"><td colspan="2"><p style="text-align:left;"> <strong>CPF interest rates from 1 October 2017 to 31 December 2017</strong></p><ul><li> <strong>Up to 3.5% per annum on the Ordinary Account </strong></li><li> <strong>Up to 5% per annum on the Special and Medisave Accounts</strong></li><li> <strong>CPF members aged 55 and above will earn an additional 1% extra interest on the first $30,000 of their combined balances</strong></li></ul><p> <strong></strong> <br></p><p> <strong>HDB mortgage rate from 1 October 2017 to 31 December 2017</strong></p><ul><li><p> <strong>Remains unchanged at 2.6% per annum</strong></p></li></ul></td></tr></tbody></table><p> </p><p>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 Special, Medisave and Retirement Account (SMRA) monies for another year until 31 December 2018.</p><p>Since 1 January 2008, savings in the SMRA have been invested in Special Singapore Government Securities (SSGS) which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. This is a market-based rate for instruments of comparable risk and duration, and will ensure that members receive fair and reasonable interest rates.</p><p>To help members cope with the transition, the Government had committed to providing a 4% floor rate for SMRA interest for two years up to December 2009. This was subsequently extended in light of global economic conditions and the fact that interest rates had been exceptionally low. The current 4% floor rate is due to expire on 31 December 2017.<br></p><p> </p><p> <strong>CPF interest rates for Ordinary, Special and Medisave Accounts from 1 October 2017 to 31 December 2017</strong></p><p>Central Provident Fund (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 last quarter of 2017. 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. </p><p>CPF 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, CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.</p><p>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 the 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.</p><p>  </p><p> <strong>Interest rate for Ordinary Account and HDB mortgage rate</strong></p><p>The OA interest rate will be maintained at 2.5% per annum from 1 October 2017 to 31 December 2017, as the computed rate of 0.24% is lower than the legislated minimum interest rate.<br> <br>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 October 2017 to 31 December 2017.</p><p>Please refer to <a href="#AnnexA">Annex A</a> for the detailed computation of the OA interest rate and HDB mortgage rate.</p><p>   <strong></strong></p><p> <strong>Interest rate for Special and Medisave Accounts</strong></p><p>The SMA interest rate will be maintained at 4% per annum from 1 October 2017 to 31 December 2017, as the computed rate of 3.12% is lower than the current floor interest rate of 4% per annum.​​</p><p>Please refer to <a href="#AnnexB">Annex B</a> for the detailed computation of the SMA interest rate.</p><p> </p><p> <strong>Interest rate for Retirement Account</strong></p><p>The RA interest rate will be maintained at 4% per annum from 1 January 2017 to 31 December 2017, as announced on 29 November 2016.</p><p>Please refer to <a href="#AnnexC">Annex C</a> for the detailed computation of the RA interest rate. </p><p>  </p><p> <strong>Public enquiries</strong></p><p>CPF members can visit <a href="https://www.cpf.gov.sg/">cpf.gov.sg</a> or call the CPF Call Centre at 1800-227-1188 for enquiries. </p><p> </p><p> </p><div align="right"> <a name="AnnexA"></a> <span class="blackhighlight"> <a name="AnnexA"></a> <strong>Annex A<br></strong></span></div><div align="right"> <span class="blackhighlight"><strong>​​<br></strong></span></div><p> <strong></strong><span class="blackhighlight"><strong>Computation of CPF OA interest rate and HDB mortgage rate for 1 October 2017 to 31 December 2017</strong></span><br><br>The interest rate on OA monies is adjusted 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> <br></p> <img src="/Assets/common/PublishingImages/22Sep17_Min4InterestRate_AnnexATable1.png" alt="CPF OA interest rate and HDB mortgage rate for 1 Oct 2017 to 31 Dec 2017" style="width:95.6%;height:auto;" /> <p> ​<br></p><p align="center" style="text-align:left;"> <span class="blackhighlight"> <strong>Note:</strong></span></p> <img src="/Assets/common/PublishingImages/22Sep17_Min4InterestRate_AnnexATable2.png" alt="Banks’ interest rate from May 2017 to July 2017" style="width:99.1%;height:auto;" />​ <br> <table width="100%" border="0"><tbody><tr></tr></tbody></table> <br>(1) Balances of $20,000 to < $50,000 <br>(2) Balances > $20,000 to $50,000 <br>(3) Balances < $50,000 <br>(4) Balances > $10,000 to $100,000 (AUTO-SAVE Account) <br>(5) Balances ≤ $100,000 (EASI-SAVE Account) <br>(6) Balances > $15,000 to $100,000 (UNIPLUS Account) <table width="100%" border="0"><tbody><tr></tr><tr><td colspan="4"> <font face="Arial, Helvetica, sans-serif" size="2"></font></td></tr></tbody></table><div align="right"> <a name="AnnexB"></a> <span class="blackhighlight"> <a name="AnnexB"></a> <br> <strong>Annex B</strong></span></div>   <table width="100%" border="0" cellspacing="0" cellpadding="2"><tbody><tr><td colspan="2"> <span class="blackhighlight"><strong>Computation of CPF SMA interest rate for 1 October 2017 to 31 December 2017</strong></span></td></tr><tr><td colspan="2"><p> <br>The interest rate on SMA monies is adjusted 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. <br></p><p> </p> <img src="/Assets/common/PublishingImages/22Sep17_Min4InterestRate_AnnexBTable1.png" alt="CPF SMA interest rate for 1 Oct 2017 to 31 Dec 2017" style="width:95.4%;height:auto;" /> <p> </p></td></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"><p align="center" style="text-align:left;"> <span class="blackhighlight"> <strong>Note:</strong></span></p><p align="center">​ <img src="/Assets/common/PublishingImages/10YRSGS_22Sep2017.png" alt="10-Year SGS - 22 Sep 2017" style="width:94.5%;height:auto;" /></p></td></tr><tr><td>  </td><td><p align="left">Source: Yields of 10-Year Singapore Government Securities are obtained from <a href="http://www.sgs.gov.sg/" target="_blank">www.sgs.gov.sg</a></p></td></tr><tr><td> </td></tr><tr></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"><div align="right"> <a name="AnnexC"></a> <span class="blackhighlight"> <a name="AnnexC"></a> <strong>Annex C</strong></span></div></td></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"> </td></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"><table width="100%" border="0" cellspacing="0" cellpadding="2"><tbody><tr><td colspan="2"><p> <span class="blackhighlight"><strong>Computation of CPF RA interest rate for 1 January 2017 to 31 December 2017</strong></span></p></td></tr><tr><td colspan="2">RA monies credited in 2017 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. </td><td valign="top"> </td></tr></tbody></table> <br> <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%. <br> <br>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.<br></p></td></tr></tbody></table> ​​​​Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2018TrueTrue

 

 

Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 2018<br> <table width="100%" border="0" cellspacing="0" cellpadding="2"><tbody><tr bgcolor="#dddddd"><td colspan="2"><p style="text-align:left;"> <strong>CPF interest rates from 1 October 2017 to 31 December 2017</strong></p><ul><li> <strong>Up to 3.5% per annum on the Ordinary Account </strong></li><li> <strong>Up to 5% per annum on the Special and Medisave Accounts</strong></li><li> <strong>CPF members aged 55 and above will earn an additional 1% extra interest on the first $30,000 of their combined balances</strong></li></ul><p> <strong></strong> <br></p><p> <strong>HDB mortgage rate from 1 October 2017 to 31 December 2017</strong></p><ul><li><p> <strong>Remains unchanged at 2.6% per annum</strong></p></li></ul></td></tr></tbody></table><p> </p><p>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 Special, Medisave and Retirement Account (SMRA) monies for another year until 31 December 2018.</p><p>Since 1 January 2008, savings in the SMRA have been invested in Special Singapore Government Securities (SSGS) which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. This is a market-based rate for instruments of comparable risk and duration, and will ensure that members receive fair and reasonable interest rates.</p><p>To help members cope with the transition, the Government had committed to providing a 4% floor rate for SMRA interest for two years up to December 2009. This was subsequently extended in light of global economic conditions and the fact that interest rates had been exceptionally low. The current 4% floor rate is due to expire on 31 December 2017.<br></p><p> </p><p> <strong>CPF interest rates for Ordinary, Special and Medisave Accounts from 1 October 2017 to 31 December 2017</strong></p><p>Central Provident Fund (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 last quarter of 2017. 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. </p><p>CPF 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, CPF members aged 55 and above will earn up to 6% interest per year on their retirement balances.</p><p>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 the 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.</p><p>  </p><p> <strong>Interest rate for Ordinary Account and HDB mortgage rate</strong></p><p>The OA interest rate will be maintained at 2.5% per annum from 1 October 2017 to 31 December 2017, as the computed rate of 0.24% is lower than the legislated minimum interest rate.<br> <br>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 October 2017 to 31 December 2017.</p><p>Please refer to <a href="#AnnexA">Annex A</a> for the detailed computation of the OA interest rate and HDB mortgage rate.</p><p>   <strong></strong></p><p> <strong>Interest rate for Special and Medisave Accounts</strong></p><p>The SMA interest rate will be maintained at 4% per annum from 1 October 2017 to 31 December 2017, as the computed rate of 3.12% is lower than the current floor interest rate of 4% per annum.​​</p><p>Please refer to <a href="#AnnexB">Annex B</a> for the detailed computation of the SMA interest rate.</p><p> </p><p> <strong>Interest rate for Retirement Account</strong></p><p>The RA interest rate will be maintained at 4% per annum from 1 January 2017 to 31 December 2017, as announced on 29 November 2016.</p><p>Please refer to <a href="#AnnexC">Annex C</a> for the detailed computation of the RA interest rate. </p><p>  </p><p> <strong>Public enquiries</strong></p><p>CPF members can visit <a href="https://www.cpf.gov.sg/">cpf.gov.sg</a> or call the CPF Call Centre at 1800-227-1188 for enquiries. </p><p> </p><p> </p><div align="right"> <a name="AnnexA"></a> <span class="blackhighlight"> <a name="AnnexA"></a> <strong>Annex A<br></strong></span></div><div align="right"> <span class="blackhighlight"><strong>​​<br></strong></span></div><p> <strong></strong><span class="blackhighlight"><strong>Computation of CPF OA interest rate and HDB mortgage rate for 1 October 2017 to 31 December 2017</strong></span><br><br>The interest rate on OA monies is adjusted 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> <br></p> <img src="/Assets/common/PublishingImages/22Sep17_Min4InterestRate_AnnexATable1.png" alt="CPF OA interest rate and HDB mortgage rate for 1 Oct 2017 to 31 Dec 2017" style="width:95.6%;height:auto;" /> <p> ​<br></p><p align="center" style="text-align:left;"> <span class="blackhighlight"> <strong>Note:</strong></span></p> <img src="/Assets/common/PublishingImages/22Sep17_Min4InterestRate_AnnexATable2.png" alt="Banks’ interest rate from May 2017 to July 2017" style="width:99.1%;height:auto;" />​ <br> <table width="100%" border="0"><tbody><tr></tr></tbody></table> <br>(1) Balances of $20,000 to < $50,000 <br>(2) Balances > $20,000 to $50,000 <br>(3) Balances < $50,000 <br>(4) Balances > $10,000 to $100,000 (AUTO-SAVE Account) <br>(5) Balances ≤ $100,000 (EASI-SAVE Account) <br>(6) Balances > $15,000 to $100,000 (UNIPLUS Account) <table width="100%" border="0"><tbody><tr></tr><tr><td colspan="4"> <font face="Arial, Helvetica, sans-serif" size="2"></font></td></tr></tbody></table><div align="right"> <a name="AnnexB"></a> <span class="blackhighlight"> <a name="AnnexB"></a> <br> <strong>Annex B</strong></span></div>   <table width="100%" border="0" cellspacing="0" cellpadding="2"><tbody><tr><td colspan="2"> <span class="blackhighlight"><strong>Computation of CPF SMA interest rate for 1 October 2017 to 31 December 2017</strong></span></td></tr><tr><td colspan="2"><p> <br>The interest rate on SMA monies is adjusted 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. <br></p><p> </p> <img src="/Assets/common/PublishingImages/22Sep17_Min4InterestRate_AnnexBTable1.png" alt="CPF SMA interest rate for 1 Oct 2017 to 31 Dec 2017" style="width:95.4%;height:auto;" /> <p> </p></td></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"><p align="center" style="text-align:left;"> <span class="blackhighlight"> <strong>Note:</strong></span></p><p align="center">​ <img src="/Assets/common/PublishingImages/10YRSGS_22Sep2017.png" alt="10-Year SGS - 22 Sep 2017" style="width:94.5%;height:auto;" /></p></td></tr><tr><td>  </td><td><p align="left">Source: Yields of 10-Year Singapore Government Securities are obtained from <a href="http://www.sgs.gov.sg/" target="_blank">www.sgs.gov.sg</a></p></td></tr><tr><td> </td></tr><tr></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"><div align="right"> <a name="AnnexC"></a> <span class="blackhighlight"> <a name="AnnexC"></a> <strong>Annex C</strong></span></div></td></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"> </td></tr><tr><td height="2" valign="top"> </td><td height="2" valign="top"><table width="100%" border="0" cellspacing="0" cellpadding="2"><tbody><tr><td colspan="2"><p> <span class="blackhighlight"><strong>Computation of CPF RA interest rate for 1 January 2017 to 31 December 2017</strong></span></p></td></tr><tr><td colspan="2">RA monies credited in 2017 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. </td><td valign="top"> </td></tr></tbody></table> <br> <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%. <br> <br>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.<br></p></td></tr></tbody></table> ​​​​Minimum 4% interest rate for Special, Medisave and Retirement Account monies to be extended until 31 December 201822/9/2017 1:55:00 AMhttps://null/common/Lists/News/DispForm.aspx?ID=2625Central Provident Fund Board and Housing & Development Board

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