Statute Details
- Title: Central Provid Fund (Declaration of Rates of Interest) (No. 4) Notification 2024
- Act/Authorising Instrument: Central Provident Fund Act 1953
- Type: Subsidiary legislation (Notification)
- Authorising Provision: Section 6(4) of the Central Provid Fund Act 1953
- Enacting body: Central Provid Fund Board
- Ministerial approval: Second Minister for Finance
- Commencement: 1 January 2025
- Made date: 2 December 2024
- Key operative provisions: Declaration of interest rates (s 2); citation/commencement (s 1); revocation of prior notification (s 3)
- Current version status: Current version as at 26 Mar 2026 (per provided extract)
- Notification number: SL 973/2024 (G.N. No. S 973/2024)
What Is This Legislation About?
The Central Provid Fund (Declaration of Rates of Interest) (No. 4) Notification 2024 (“Notification”) is a short but practically significant instrument that declares the interest rates payable on members’ Central Provident Fund (CPF) balances for a specified period. In plain terms, it sets the annual interest that CPF members earn on different CPF accounts.
CPF interest is not a single uniform rate. The CPF system distinguishes between accounts that serve different purposes—such as retirement savings and healthcare-related savings. This Notification therefore declares two different interest rates: one for the member’s ordinary and nominee ordinary accounts, and another for several other accounts including the medisave and retirement accounts.
Although the Notification is brief, it has direct financial consequences for CPF members and operational consequences for CPF administration. It also fits into a continuing regulatory framework: the Central Provid Fund Board issues periodic notifications declaring interest rates, and this Notification revokes the immediately preceding “No. 3” notification for the relevant interest period.
What Are the Key Provisions?
1. Citation and commencement (Notification s 1)
Section 1 provides the formal title and determines when the Notification takes effect. The Notification is cited as the “Central Provid Fund (Declaration of Rates of Interest) (No. 4) Notification 2024” and comes into operation on 1 January 2025.
For practitioners, the commencement date matters because CPF interest calculations and crediting schedules depend on the applicable rate for the relevant period. A notification that commences on 1 January 2025 indicates that the declared rates are intended to apply from that date onward (subject to how CPF Board credits interest in practice and any other related instruments that may govern the mechanics of interest computation).
2. Rate of interest payable (Notification s 2)
Section 2 is the core provision. It declares that interest is payable on CPF balances at two rates, depending on the account type:
(a) Ordinary and nominee ordinary accounts: Interest is payable on amounts standing to the credit of a member in the ordinary account and nominee ordinary account (if any) at 2.5% per annum.
(b) Medisave, special, retirement and related accounts: Interest is payable on amounts standing to the credit of a member in the medisave account, special account, retirement account, and their respective nominee accounts (if any) at 4% per annum.
This structure reflects the CPF policy approach of differentiating interest rates across account categories. From a legal and compliance perspective, the key is that the Notification does not merely state a general “CPF interest rate”; it specifies the exact accounts to which each rate applies. That specificity is important when advising members or when dealing with disputes or calculations that require identifying which portion of a member’s CPF balances attracts which rate.
3. Revocation of the previous notification (Notification s 3)
Section 3 revokes the earlier instrument: Central Provid Fund (Declaration of Rates of Interest) (No. 3) Notification 2024 (G.N. No. S 740/2024).
Revocation is a legal mechanism that ensures there is no conflict between overlapping declarations. In practice, where multiple notifications exist for the same general subject matter, revocation clarifies which instrument governs. For practitioners, this means that when determining the applicable interest rate for the relevant period, one must identify the operative notification at the time the interest is credited and confirm whether later notifications have superseded earlier ones.
How Is This Legislation Structured?
The Notification is structured as a short instrument with three sections:
- Section 1 (Citation and commencement): identifies the Notification and sets the commencement date (1 January 2025).
- Section 2 (Rate of interest payable): declares the interest rates and specifies which CPF accounts receive which rate.
- Section 3 (Revocation): revokes the previous “No. 3” notification (G.N. No. S 740/2024).
There are no additional parts, schedules, or procedural provisions in the extract provided. The Notification is therefore best understood as a targeted declaration rather than a comprehensive regulatory code.
Who Does This Legislation Apply To?
The Notification applies to CPF members whose balances stand to their credit in the relevant CPF accounts. It also applies to nominee accounts where a nominee has been designated and the nominee ordinary, medisave, special, or retirement accounts exist “(if any)” as stated in section 2.
In practical terms, the interest rates declared by this Notification affect the financial entitlements of members and nominees. While the Notification is addressed to the CPF Board and issued under statutory authority, the economic effect is on individuals holding CPF balances in the specified account categories.
Why Is This Legislation Important?
Although the Notification is brief, it is important because CPF interest rates are a core component of retirement and long-term financial planning in Singapore. The declared rates—2.5% per annum for ordinary account balances and 4% per annum for medisave, special, and retirement-related balances—directly influence the growth of CPF savings over time.
From a legal practitioner’s standpoint, the Notification is also important for accuracy in calculations and determining applicable rates when advising clients. CPF balances may be subject to various legal and administrative processes (for example, transfers, withdrawals, or arrangements involving nominees). In any context where the interest component is relevant—whether for personal advice, documentation, or dispute resolution—identifying the correct rate and the correct account category is essential.
Finally, the revocation clause underscores that CPF interest declarations can change through successive notifications. Practitioners should therefore treat such notifications as part of a dynamic regulatory sequence rather than a one-off statement. When advising on interest for a period that spans multiple notifications, counsel should verify which notification was operative and whether later notifications superseded earlier ones.
Related Legislation
- Central Provident Fund Act 1953 (authorising Act; in particular, section 6(4))
- Central Provident Fund (Declaration of Rates of Interest) (No. 3) Notification 2024 (G.N. No. S 740/2024) — revoked by this Notification
Source Documents
This article provides an overview of the Central Provident Fund (Declaration of Rates of Interest) (No. 4) Notification 2024 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.