|By Dennis Chan|
The board said its computed rate, derived from the rates of major local banks for the period between May 1 and July 31, works out to 0.44 per cent a year. -- ST PHOTO: STEPHANIE YEOW
CENTRAL Provident Fund members will continue to receive 2.5 per cent a year on the savings in their ordinary account for the next three months.
The board said its computed rate, derived from the rates of major local banks for the period between May 1 and July 31, works out to 0.44 per cent a year.
The higher rate of 2.5 per cent will be paid because that is the minimum specified under the CPF Act.
The board also announced that the concessionary interest rate for Housing Board mortgage loans will remain unchanged at 2.6 per cent a year for the same October to December period.
This rate is pegged at 0.1 percentage point above the CPF interest rate for ordinary account.
An extra 1 per cent interest will be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the ordinary account.
The interest rates for Special, Medisave and Retirement accounts for October to December will be announced next month after the average yield of the 10-year Singapore government security is computed.
It will be no lower than the prevailing rate of 4 per cent.
a blog on: Financial Planning Advice - Christopher Pua