SINGAPORE – The interest rate for the Special and MediSave accounts
of Central Provident Fund (CPF) members will increase to 4.08 per cent
per annum, from 4.04 per cent, for the period from Jan 1 to March 31,
2024.
The rate hike is due to an increase in the 12-month average yield of
10-year Singapore Government Securities, which the interest rate is
pegged to, said the CPF Board, Housing Board and Health Ministry in a
joint statement on Dec 6.
The interest rate for the Retirement Account (RA) will also increase to 4.08 per cent, from 4 per cent, for the same period.
From 2024, the RA interest rate peg will be aligned to that of the
Special and MediSave accounts and computed quarterly instead of
annually.
“This change will allow the RA interest rate to be more responsive to
the prevailing interest rate environment,” said the statement.
The Ordinary Account (OA) interest rate will remain unchanged at 2.5 per cent 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 the statement.
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The Basic Healthcare Sum will be raised to $71,500, from $68,500, for
CPF members under 65 years old from Jan 1. Those who are 66 and above
in 2024 will see no change to their sum.
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