All members of CPF (Central Provident Fund) will receive interest rate of 2.5% p.a. on their OA (Ordinary Accounts) for the period of 1 APRIL 2012 TO 30 JUNE 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 April 2012 to 30 June 2012.
The computed CPF interest rate, derived from the major local banks’ interest rates for the three-month period, 1 November 2011 to 31 January 2012, worked out to be 0.16% per annum. However, members will receive the higher rate of 2.50% as legislated by the CPF Act.
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.
Do remember that the money in CPF is still your money and some of you might have used part of your CPF monies for investments such as Unit Trusts.
Maybe its time to have a look into your investment portfolio and see what returns it has made so far. If the returns are lesser than what the CPF are offering, you might want to park your monies back into CPF to earn the risk-free interest!