4% interest rate floor for CPF Special, MediSave, Retirement accounts extended till end-2027
Interest rates for the coming quarter remains unchanged.
In a bid to assist members in growing their retirement savings, the CPF Board and Housing and Development Board (HDB) have announced the extension of the 4 percent minimum interest rate for Central Provident Fund (CPF) Special, MediSave, and Retirement accounts for another year, as of 2027. This move provides members with a stable return rate, amid the volatile economic climate and fluctuating interest rates, the CPF Board and HDB stated in a joint press release.
The floor interest rate for these accounts will also stay unchanged at 2.5 percent for the fourth quarter, as the pegged rate remains below the 4 percent floor. Additionally, the concessionary interest rate for HDB housing loans, pegged at 0.1 percent above the Ordinary Account interest rate, will remain at 2.6 percent for Q4.
Recent US Federal Reserve interest rate hike, marking a 0.25 percentage point increase in September 2023, may influence Singapore's interest rates, although Singapore does not directly follow the US central bank's decisions. The hike could impact global funding conditions and, consequently, Singapore's interest rates, including the Singapore Overnight Rate Average (SORA) used to price floating-rate home loans.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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