CPF INTEREST RATE AND HDB MORTGAGE RATE FROM 1 APRIL 2006 TO 30 JUNE 2006

News Release by: Central Provident Fund Board Housing & Development Board 15 February 2006 --

The CPF Board will continue to pay interest to its members at the rate of 2.50% per annum for CPF savings in their Ordinary Account from 1 April 2006 to 30 June 2006. The CPF interest rate is reviewed quarterly.

The computed CPF interest rate derived from the major local banks’ interest rates for the three-month period, 1 November 2005 to 31 January 2006, works out to be 0.73% 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 November 2005 to January 2006 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 0.1 percentage point above the CPF interest rate for the Ordinary Account, will remain unchanged at 2.60% per annum from 1 April 2006 to 30 June 2006. The next revision of the CPF interest rate will be made on 1 July 2006. 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.

ANNEX :

COMPUTATION OF CPF INTEREST RATE AND HDB MORTGAGE RATE FOR APRIL 2006 TO JUNE 2006 12-MONTH DEPOSIT RATE (% PA)       SAVINGS RATE (% PA) AVERAGE 80FD:20SD (% PA) MONTH/YEAR DBS   (1) OCBC   (2) UOB   (3) DBS   (4) OCBC   (5) UOB   (6) 30 Nov 05 0.8250 0.8250 0.8250 0.3500 0.2500 0.2500 0.7167 31 Dec 05 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 31 Jan 06 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 (A) NORMAL CPF INTEREST RATE               Average for 3 months (NOV 2005 TO JAN 2006) (Using the 80 FD : 20 SD formula) 0.73% (computed interest rate)           CPF Interest Rate for APR 2006 TO JUN 2006 2.50% (legislated minimum rate)         (B) HDB MORTGAGE RATE               CPF Interest Rate for APR 2006 TO JUN 2006 2.50%     Plus: Fee to cover Cost of Loan Administration 0.10%               -------     HDB Mortgage Rate for APR 2006 TO JUN 2006 2.60%       -------           NOTES: (1) Balances between $20,000 to < $50,000 (2) Balances > $20,000 to $50,000 (3) Balances < $50,000 (4) Balances > $3,000 to $50,000 (AUTO-SAVE Account) (5) Balances > $5,000 to $50,000 for Nov 05 (EASI-SAVE Account)      Balances > $10,000 to $50,000 for Dec 05 and Jan 06 (EASI-SAVE Account) (6) Balances > $3,000 to <$50,000 (UNIPLUS Account)