There will be no change to Central Provident Fund (CPF) rates for the months of July to September 2020.

A joint news release by the CPF Board and the Housing & Development Board (HDB) on May 22 confirmed the status quo for CPF monies.

CPF Ordinary Account (OA) and HDB Mortgage

The OA interest rate will remain at 2.5 per cent per annum, from July 1 to Sep. 30, 2020.

As the concessionary interest rate for HDB mortgage loans is linked to this rate, pegged at 0.1 per cent higher, the HDB mortgage rate will remain at 2.6 per cent per annum for the same period.

Special and Medisave accounts

The interest rate for these accounts will be maintained at 4 per cent per annum, from July 1 to Sep. 30, 2020.

Retirement account

And the interest rate for the Retirement Account will be maintained at 4 per cent per annum from Jan 1 to Dec. 31, 2020, as announced in September 2019.

Extra one per cent interest

However, CPF members below the age of 55 will earn an extra 1 per cent interest on the first S$60,000 of their combined balances, with up to S$20,000 from the Ordinary Account.

This means they will continue to earn interest rates of up to 3.5 per cent per annum on their Ordinary Account monies, and up to 5 per cent per annum on their Special and MediSave account monies from July 1 to Sep. 30, 2020.

Extra two per cent interest

CPF members older than 55 will earn an extra 2 per cent interest on the first S$30,000 of their combined balances (with up to $20,000 from the OA), and an extra 1 per cent on the next S$30,000.

As a result, members aged 55 and above will earn up to 6 per cent interest per year on their retirement balances.

The statement added: "The extra interest paid to CPF members is part of the government’s efforts to enhance the retirement

savings for CPF members."

The extra interest received on the Ordinary Account will go into the member’s Special Account or Retirement Account (RA) to enhance retirement savings.

If a member is above 55 years old and participates in the CPF LIFE scheme, the extra interest will still be earned on his or her combined balances, which includes the savings used for CPF LIFE.

Top image from CPF Board's Facebook page.