CPF INTEREST RATE AND HDB MORTGAGE RATE FROM 1 OCTOBER 2003 TO 31 DECEMBER 2003
	News Release by: Central Provident Fund Board 15 AUGUST 2003 --
	The CPF Board will continue to pay interest to its 3.0 million CPF members at the rate of 2.50% per annum for CPF savings in their Ordinary Account from 1 October 2003 to 31 December 2003. The CPF interest rate is reviewed quarterly.
	The computed CPF interest rate, derived from the interest rates for the three-month period, 1 May 2003 to 31 July 2003, works out to be 0.59% per annum. However, the Board will be paying the higher rate of 2.50% per annum as the CPF Act provides for a minimum CPF interest rate of 2.50% per annum. This minimum rate is higher than the 12-month fixed deposit and savings rates of the major local banks for the May 2003 to July 2003 period.
	Savings in the Medisave Account, Special Account and Retirement Account will earn interest at 4.00% per annum. This is 1.5 percentage points higher than that for the Ordinary Account. The concessionary interest rate for HDB mortgage loan, which is pegged at 0.1percentage point above the CPF interest rate for the Ordinary Account, will remain unchanged at 2.60% per annum from 1 October 2003 to 31 December 2003. The next revision of the CPF interest rate will be made on 1 January 2004. The detailed computations of the CPF interest rate and the HDB mortgage loan interest rate are given in the Annex.
	PUBLIC ENQUIRIES
	Members with enquiries may call the CPF Call Centre on 1800-227 1188 (Code 1)
	ANNEX :
	COMPUTATION OF CPF INTEREST RATE AND HDB MORTGAGE RATE FOR OCTOBER 2003 TO DECEMBER 2003 12-MONTH DEPOSIT RATE (% PA)       SAVINGS RATE (% PA) AVERAGE MONTH/YEAR DBS   (1) OCBC   (2) UOB   (3) DBS   (4) OCBC   (5) UOB   (6) 80FD:20SD (% PA) 31 May 03 0.6250 0.7000 0.7000 0.2000 0.2500 0.2500 0.5867 30 Jun 03 0.6250 0.7000 0.7000 0.2000 0.2500 0.2500 0.5867 31 Jul 03 0.6250 0.7000 0.7000 0.2000 0.2500 0.2500 0.5867 (A) NORMAL CPF INTEREST RATE               Average for 3 months (MAY 2003 TO JUL 2003) (Using the 80 FD : 20 SD formula) 0.59% (computed interest rate)           CPF Interest Rate for OCT 2003 TO DEC 2003 2.50% (legislated minimum rate)         (B) HDB MORTGAGE RATE               CPF Interest Rate for OCT 2003 TO DEC 2003 2.50%     Plus: Fee to cover Cost of Loan Administration 0.10%               --------     HDB Mortgage Rate for OCT 2003 TO DEC 2003 2.60%       --------           NOTES: (1) Balances between $20,000 to < $50,000 (2) Balances less than $50,000 (3) Balances < $50,000 (4) Balances > $3,000 to $50,000 (AUTO-SAVE Account) (5) Balances > $3,000 to $50,000 (EASI-SAVE Account) (6) Balances > $3,000 to $50,000 (UNIPLUS Account) OCT-DEC 2003