CPF Interest Rate Pegged
Tuesday, 1st January 2008
The CPF (Central Provident Fund) interest rate for savings in the Special, Medisave and Retirement Accounts (SMRA) has been pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%. The average yield of the 10YSGS over one year plus 1% worked out to be about 3.40% a year. To help CPF members adjust to the floating SMRA rate, the Government will maintain the 4% floor rate for two years, from 1 January 2008 to 31 December 2009.
An additional 1% interest will be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the member’s Special or Retirement Account to enhance his retirement savings.
Reference:
www.sgs.gov.sg
www.cpf.gov.sg