SINGAPORE — The interest rate for Central Provident Fund (CPF) Special, MediSave and Retirement accounts will dip to 4.05 per cent per annum in the second quarter of 2024.

This is down from 4.08 per cent in the previous quarter and marks the first decrease in the interest rate for Special and MediSave accounts after three consecutive increases.

With the Special, MediSave and Retirement Account (SMRA) pegged rate "exceeding the floor rate of 4 per cent", savings in the SMRA will earn 4.05 per cent from Apr 1 to June 30, CPF and the Housing Development Board (HDB) said in a news release on Tuesday (March 12). 

"The SMRA interest rate is pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1 per cent," read the joint release.

The Government announced last year that the Retirement Account (RA) interest rate peg would be aligned to that of the Special and MediSave accounts and computed quarterly instead of annually from Jan 1 this year.

The interest rate for the Ordinary Account (OA) will remain unchanged at 2.5 per cent for the same period as its pegged rate remains below the floor rate of 2.5 per cent.

Correspondingly, the concessionary interest rate for HDB housing loans, which is pegged at 0.1 per cent above the OA interest rate, will remain unchanged at 2.6 per cent per annum for the same period.

"The Government will continue to ensure that the CPF interest rate pegs remain relevant in the prevailing operating environment while taking into consideration the longer-term outlook,” said CPF and HDB. 

As part of the Government’s efforts to enhance the retirement savings for CPF members, CPF members will continue to earn extra interest on their CPF savings.

Members below 55 years old will earn an extra 1 per cent interest on the first S$60,000 of their combined balances. This is capped at S$20,000 for the OA.

Members aged 55 and above will receive an extra 2 per cent interest on the first S$30,000 of their combined balances, also capped at S$20,000 for the OA, and an extra 1 per cent on the next S$30,000.

The extra interest received on the OA balances will go into the member’s Special Account (SA) or RA, said the authorities.

Members who are above 55 years old and participate in the CPF Life scheme will still earn the extra interest on his or her combined CPF balances. This includes the savings used for CPF Life. CNA