Singapore. The government is watching the current interest rate environment closely “to ensure that the CPF (Central Provident Fund) interest rate pegs remain relevant in the prevailing operating environment,” according to a joint news release by CPFB, HDB, and MOH. A longer-term outlook will also be considered.
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This announcement is a unique addition to the quarterly release which updates changes in CPF interest rates. Amid today’s increasing interest rate environment, banks are offering promotional rates of over 3% for 12-month fixed deposits with a minimum of S$20,000.
According to CPFB, individuals above 55 can still earn up to 6% annually on their RA. Meanwhile, OA and SA interest rates remain unchanged.
The concessionary interest rate for HDB housing loans which are pegged at 0.1% above the OA interest rate will also remain unchanged. This is still at 2.6% per annum from 1 January to 31 March.
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