CPF ORDINARY ACCOUNT INTEREST RATE FROM 1 OCTOBER 2010 TO 31 DECEMBER 2010
	Joint News Release by: Central Provident Fund Board Housing & Development Board 18 August 2010 --
	Interest Rate For Ordinary Account (OA)
	The Board will continue to pay 2.50% interest per annum for members’ CPF savings in their Ordinary Account (OA) from 1 October 2010 to 31 December 2010. The computed CPF interest rate derived from the major local banks’ interest rates for the three-month period, 1 May 2010 to 31 July 2010, worked out to be 0.41 % 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 OA, will remain unchanged at 2.60% per annum from 1 October 2010 to 31 December 2010. The detailed computations of the CPF OA interest rate and the HDB mortgage loan interest rate are given in the Annex.
	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.
	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 2010 TO DECEMBER 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 May 10 0.4500 0.5500 0.4500 0.1250 0.1750 0.1000 0.4133 30 Jun 10 0.4500 0.5500 0.4500 0.1250 0.1750 0.1000 0.4133 31 Jul 10 0.4500 0.5500 0.4500 0.1250 0.1750 0.1000 0.4133 (A) NORMAL CPF OA INTEREST RATE               Average for 3 months (May 2010 to Jul 2010) (Using the 80 FD : 20 SD formula) 0.41% (computed interest rate)           CPF OA Interest Rate for Oct 2010 to Dec 2010 2.50% (legislated minimum rate)         (B) HDB MORTGAGE RATE               CPF OA Interest Rate for Oct 2010 to Dec 2010 2.50%     Plus: Fee to cover Cost of Loan Administration 0.10%               -------     HDB Mortgage Rate for Oct 2010 to Dec 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 May 2010 to 30 Jul 2010.