Gov’t takes measures to ensure CPF interest rates remain relevant
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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