CPF interest rate for Ordinary Account stays at 2.5%

SINGAPORE: The Central Provident Fund (CPF) Board said members will continue to receive an interest rate of 2.5 per cent on their Ordinary Account savings from 1 October 2011 to 31 December 2011.

This is despite the computed CPF interest rate, derived from the major local banks' interest rates from 1 May 2011 to 31 July 2011, working out to 0.36 per cent per annum.

Members will also continue to receive an extra 1 per cent interest on the first $60,000 of their combined balances, with up to $20,000 from the Ordinary Account.

The extra interest from the Ordinary Account will go into the member's Special or Retirement Account to enhance retirement savings.

Please check if it is as accordance to your retirement plan through this article.