Interest rate for CPF Special and MediSave Account up to 4.01% in Q3; first increase since 2008

The SMA interest rate will be 4.01 per cent per annum from Jul 1 to Sep 30.

The OA interest rate will remain unchanged at 2.5 per cent for the same period as the pegged OA rate remains below the floor rate. 

Meanwhile, the concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent per annum for the same period.

For the Retirement Account (RA) interest rate, it will be maintained at 4 per cent from Jan 1 to Dec 31.

The extra interest received in the OA will go into the member’s Special Account (SA) or RA, said CFP and HDB.

“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,” they said.

They added: “The government is watching the interest rate environment closely to ensure that the CPF interest rate pegs remain relevant in the prevailing operating environment while taking into consideration the longer-term outlook.”