CPF interest rates to stay unchanged for Q1, 2020
The interest rates that can be earned on the various Central Provident Fund (CPF) accounts will remain unchanged between January and March 2020, the CPF Board and Housing Board said in a joint press release yesterday.
CPF members will continue to earn interest rates of up to 3.5 per cent a year on their Ordinary Account (OA) money, and up to 5 per cent a year on their Special and MediSave accounts money in the first quarter of 2020.
The CPF board said that the interest rates include an extra 1 per cent interest paid on the first $60,000 of a member's combined balances.
Members aged 55 and above will also earn an additional 1 per cent extra interest on the first $30,000 of their combined balances.
This is on top of the extra 1 per cent interest that is earned on the first $60,000 of their combined balances.
BASIC HEALTHCARE SUM RAISED
As a result, members aged 55 and above will earn up to 6 per cent interest a 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. The interest rate on SA and RA will also remain unchanged.
From January next year, the Basic Healthcare Sum (BHS) will be raised from $57,200 to $60,000 for Central Provident Fund (CPF) members below age 65.
The BHS is the estimated savings required for basic subsidised healthcare needs in old age, and is adjusted yearly for members below 65 years of age to keep pace with the growth in MediSave withdrawals, said the CPF board in a press release yesterday.
Once members reach the age of 65, their BHS will be fixed for the rest of their lives.