CPF INTEREST RATE AND HDB MORTGAGE RATE FROM 1 JULY 2006 TO 30 SEPTEMBER 2006
	News Release by: Central Provident Fund Board Housing & Development Board 24 May 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 July 2006 to 30 September 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 February 2006 to 30 April 2006, works out to be 0.74% 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 February 2006 to April 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 July 2006 to 30 September 2006. The next revision of the CPF interest rate will be made on 1 October 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 JULY 2006 TO SEPTEMBER 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) 28 Feb 06 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 31 Mar 06 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 30 Apr 06 0.8250 0.8250 0.8250 0.3500 0.5000 0.3000 0.7367 (A) NORMAL CPF INTEREST RATE               Average for 3 months (FEB 2006 TO APR 2006) (Using the 80 FD : 20 SD formula) 0.74% (computed interest rate)           CPF Interest Rate for JUL 2006 TO SEP 2006 2.50% (legislated minimum rate)         (B) HDB MORTGAGE RATE               CPF Interest Rate for JUL 2006 TO SEP 2006 2.50%     Plus: Fee to cover Cost of Loan Administration 0.10%               --------     HDB Mortgage Rate for JUL 2006 TO SEP 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 > $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 February to 30 April 2006.