In the third quarter of 2024, the interest rates for the Central Provident Fund (CPF) Special Accounts, MediSave Accounts, and Retirement Accounts in Singapore will increase to 4.08 percent. This is a slight rise from the 4.05 percent rate observed in the previous quarter, reversing a trend after three consecutive increases. The CPF Board and Housing Board announced on Wednesday, May 29, that this uptick is linked to the elevated 12-month average yield of 10-year Singapore Government Securities, with these accounts’ rates benchmarked at this average yield plus an additional 1 percent.
Meanwhile, the interest rate for the Ordinary Account (OA) will stay at 2.5 percent for the same quarter. Additionally, the concessional interest rate for Housing Development Board (HDB) housing loans, which is calculated at 0.1 percent above the OA interest rate, will similarly remain at 2.6 percent.
As part of ongoing measures to augment CPF members’ retirement savings, the government will persist in providing extra interest on CPF savings. Individuals under 55 years old will gain an additional 1 percent interest on the first S$60,000 (approximately US$44,460) of their aggregated balances, with this bonus interest limited to S$20,000 for the OA. For members aged 55 and over, the first S$30,000 of their combined balances will attract an added 2 percent interest, subject to a S$20,000 limit for the OA, and a 1 percent extra interest on the subsequent S$30,000.
Notably, the supplementary interest on OA balances will be transferred to the members’ Special Account or Retirement Account. For members beyond 55 years who participate in CPF LIFE, an annuity scheme, this additional interest will be calculated on their total CPF balances, which includes the funds allocated for CPF LIFE, as detailed by the CPF Board and HDB.
