CPF ORDINARY ACCOUNT INTEREST RATE FROM 1 JANUARY 2010 TO 31 MARCH 2010
	Joint News Release by: Central Provident Fund Board Housing & Development Board 16 November 2009 --
	Interest Rate For Ordinary Account (OA)
	The Board will continue to pay 2.50% interest per annum for members’ CPF savings in their OA from 1 January 2010 to 31 March 2010. The computed CPF interest rate derived from the major local banks’ interest rates for the three-month period, 1 August 2009 to 31 October 2009, worked out to be 0.42 % per annum. However, the higher rate of 2.50% will be paid as the CPF Act provides for a minimum CPF interest rate of 2.50% per annum.
	HDB’s Mortgage Rate
	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 January to 31 March 2010. The detailed computations of the CPF Ordinary Account interest rate and the HDB mortgage loan interest rate are given in the Annex.
	Interest Rates For Special, Medisave & Retirement Accounts (SMRA)
	The prevailing (October to December 2009) CPF interest rate for the Special, Medisave & Retirement Accounts is 4%. This was computed based on the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%. The interest rates for the Special Medisave and Retirement Accounts for January to March 2010 will be announced in December 2009 after the average yield of the 10YSGS is computed. To help members adjust to this floating rate, the 4% floor for the interest rates for the Special, Medisave & Retirement Accounts will be maintained till 31 December 2010.
	Extra Interest of 1%
	In addition, an extra 1% interest will be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The extra interest from the OA will go into the member’s Special or Retirement Account to enhance his retirement savings. The CPF interest rate will continue to be reviewed quarterly. Improving returns on CPF savings is one of the key changes introduced to help Singaporeans improve their retirement adequacy.
	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 JANUARY 2010 TO MARCH 2010 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 Aug 09 0.4500 0.5500 0.4500 0.1250 0.1750 0.1750 0.4183 30 Sep 09 0.4500 0.5500 0.4500 0.1250 0.1750 0.1750 0.4183 31 Oct 09 0.4500 0.5500 0.4500 0.1250 0.1750 0.1750 0.4183 (A) NORMAL CPF OA INTEREST RATE               Average for 3 months (AUG 2009 to OCT 2009) (Using the 80 FD : 20 SD formula) 0.42% (computed interest rate)           CPF OA Interest Rate for JAN 2010 to MAR 2010 2.50% (legislated minimum rate)         (B) HDB MORTGAGE RATE               CPF OA Interest Rate for JAN 2010 to MAR 2010 2.50%     Plus: Fee to cover Cost of Loan Administration 0.10%               -------     HDB Mortgage Rate for JAN 2010 to MAR 2010 2.60%       -------           NOTES: (1) Balances of $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 > $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 Aug 2009 to 31 Oct 2009.