In his election speech this evening (Sept 4), former Prime Minister Lee Hsien Loong cherry-picked arguments and argued that CPF interest rate is not bad because the first S$60,000 of the Special Account pays up to 5% yearly interests. He also cherry-picked the interest rate for the Retirement Account saying that it pays up to 6% yearly interests for the first S$30,000.
Lee Hsien Loong made his argument responding to criticisms why CPF interest rates are paid at 2.5%. He later took potshots at the Opposition saying that if the Opposition candidates mention these special bracketed interest rates, they will lose votes.
“I read people saying CPF only 2.5% interest rate so low, wow they want a lot more. But do you know how much CPF gives you in your Special Account? A Special Account, gives you 5% interest a year. You go to DBS, UOB you cannot get that. But you put your money in your CPF, you can get 5% for the first S$60,000. Not bad. If you are a retiree with a Retirement Account, its even better. First S$30,000, you know what you get? 6% interest! I think its not bad right!
So why when you go to Opposition rallies they never mention this. Because if they mention this nobody would vote for the Opposition.
When we tell people these numbers, they say wah can I put some money in the CPF or not.
I think the CPF is taking good care of the old people. We made the rules of the CPF when you reached 65, you can take out 20% of your money.”