CPF MEMBERS RECEIVE 2.5% INTEREST RATE ON ORDINARY ACCOUNTS FROM 1 OCTOBER 2012 TO 31 DECEMBER 2012
	Joint News Release by: Central Provident Fund Board Housing & Development Board 16 August 2012 --
	Interest Rate For Ordinary Account (OA)
	All CPF members will continue to receive a risk-free interest rate of 2.5% on their Ordinary Account savings from 1 October 2012 to 31 December 2012. The computed CPF interest rate, derived from the major local banks’ interest rates for the three-month period, 1 May 2012 to 31 July 2012, worked out to be 0.16% per annum. As this is below the legislated minimum of 2.50% per annum, the OA interest rate for October to December 2012 will remain unchanged at the legislated minimum of 2.50% per annum.
	Extra Interest of 1%
	In addition, an extra 1% interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the OA. The extra interest from the OA will go into the member’s Special or Retirement Account to enhance his retirement savings.
	HDB’s Mortgage Rate
	The concessionary interest rate for HDB mortgage loans, which is pegged at 0.1 percentage point above the CPF interest rate for the OA, will remain unchanged at 2.60% per annum from 1 October 2012 to 31 December 2012. The detailed computations of the CPF OA 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 ORDINARY ACCOUNT (OA) INTEREST RATE AND HDB MORTGAGE RATE FOR  OCTOBER 2012 TO DECEMENBER 2012 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) 31-May-12 0.0750 0.2500 0.2500 0.0500 0.0500 0.0500 0.1633 30-Jun-12 0.0750 0.2500 0.2500 0.0500 0.0500 0.0500 0.1633 30-Jul-12 0.0750 0.2500 0.2500 0.0500 0.0500 0.0500 0.1633 (A) NORMAL CPF OA INTEREST RATE               Average for 3 months (May 2012 to Jul 2012) (Using the 80 FD : 20 SD formula) 0.16% (computed interest rate)           CPF OA Interest Rate for Oct 2012 to Dec 2012 2.50% (legislated minimum rate)         (B) HDB MORTGAGE RATE               CPF OA Interest Rate for Oct 2012 to Dec 2012 2.50%     Plus: Fee to cover Cost of Loan Administration 0.10%               -------     HDB Mortgage Rate for Oct 2012 to Dec 2012 2.60%       -------           NOTES: (1) Balances of $20,000 to < $50,000 (2) Balances > $20,000 to $50,000 (3) Balances < $50,000 (4) Balances > $10,000 to $100,000 (AUTO-SAVE Account)  (5) Balances > $10,000 to $50,000 (EASI-SAVE Account) (6) Balances > $3,000 to $50,000 (UNIPLUS Account)         The CPF OA interest rate at 2.5% per annum remains higher than the 12-month fixed deposit and savings rates of major local banks for the three-month period of 1 May 2012 to 20 July 2012.