Updated: 06/24/2014 20:38

Interest rate for CPF Special, Medisave Accounts to remain at 4%



Interest rate for CPF Special, Medisave Accounts to remain at 4%

CPF members will continue to earn a risk-free interest rate of four per cent a year on their Special and Medisave Accounts (SMA) from July to September. 

This is in line with the Government's announcement made in September 2013 to maintain the four per cent floor rate for interest earned on all SMA monies and Retirement Account (RA) monies until the end of this year. 

Savings in the SMA currently earn either 4 per cent per annum or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1 per cent, whichever is higher. 

The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period. 

The CPF Board says the average yield of the 10YSGS plus 1 per cent, from June 2013 to May 2014, works out to be 3.42 per cent, lower than the current floor of 4 per cent per annum.

Latest Photo Galleries on xinmsn

NEWS VIDEOS