However, while interest rates may have risen, someīanks are still quoting a base rate of 0.05% for more significant amounts. Theoretically, it is a blend between average base savings and fixed deposit Local banks' interest rates, subject to the legislated minimum interest ofĢ.5% p.a. Per the CPF website, s avings in the Ordinary Account ('OA') earn the 3-month average of major $100,000), The extra $700 or so could be worth the effort. If you are placing a more significant amount (e.g. The time to travel to the bank, the expenses incurred ( bus rides, car parks,Įtc.) and the waiting time (which can be a few hours) may not be worth it if youĪre considering placing a small amount in the FD. It only equates to $5 more per $10,000ģ) Application is to be done in person at the bank - Opportunity Cost If your CPF balance is below $20,000, you should leave it in CPF as the upside It is the current cap at $20,000 for OA.įor CPF members above 55, the Government pays an extra 2% interest in theįirst $30,000 of the combined balance (capped at $20,000 for OA) The net return is 2.372% or 3.55%įor every 10,000, you will gain $ 237.20 vs $166.67.Ģ) CPF pays an extra 1% on the first $60,000 of members' combinedįor CPF members below 55, you can earn interest rates of up to 3.5% per annum

Effectively, that is approximately one month's worth of interest orĪ 3.88% 8-month FD effectively yields 2.58%. You will lose interest for Feb from CPF AND interest for Octįrom CPF. Place FD on 15 Feb for 8 months till 15 Oct. In this month will not earn any interest from this month onwards. Received this month only earn interest the next month. For instance, contributions (including refunds) CPF balances used for interest computation are affected by the Note before heading to the bank to make a deposit.ĬPF interest is computed on a monthly basis and credited by 1 Jan theįollowing year.

While this may sound like a great deal, there are a few things you need to

OCBC is now offering 3.88% for 8 months of Fixed Deposit using CPF and 3.4%įor 12 months Fixed Deposit.

Ocbc fixed deposit rate january 2023