CPF ORDINARY ACCOUNT INTEREST RATE FROM 1 JANUARY 2008
	Joint News Release by: Central Provident Fund Board Housing & Development Board 19 November 2007 --
	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 2008 to 31 March 2008.  The computed CPF interest rate derived from the major local banks’ interest rates for the three-month period, 1 August 2007 to 31 October 2007, works out to be 0.74 % 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 2008 to 31 March 2008.
	The detailed computations of the CPF interest rate and the HDB mortgage loan interest rate are given in the Annex.  Interest Rate For Special, Medisave & Retirement Accounts (SMRA) From 1 January 2008, savings in the Special Account, Medisave Account and Retirement Account will be pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%.   The SMRA interest rate for the first quarter next year will be announced in December 2007 after the average yield of the 10YSGS over one year, from 1 December 2006 to 30 November 2007, is computed.  To help members adjust to this floating rate, the 4% floor for the SMRA rate will be maintained for the first two years. 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. 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.
	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 2008 TO MARCH 2008 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 07 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 30 Sep 07 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 31 Oct 07 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 (A) NORMAL CPF OA INTEREST RATE               Average for 3 months (AUG 2007 TO OCT 2007) (Using the 80 FD : 20 SD formula) 0.74% (computed interest rate)           CPF OA Interest Rate for JAN 2008 TO MAR 2008 2.50% (legislated minimum rate)         (B) HDB MORTGAGE RATE               CPF OA Interest Rate for JAN 2008 TO MAR 2008 2.50%     Plus: Fee to cover Cost of Loan Administration 0.10%               -------     HDB Mortgage Rate for JAN 2008 TO MAR 2008 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 > $10,000 to $50,000 (EASI-SAVE Account) (6) Balances > $3,000 to $50,000 (UNIPLUS Account)         The CPF 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 2007 to 31 Oct 2007.