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Tuesday, Jun 24, 2014

Singapore

CPF Special and Medisave accounts to earn floor interest rate of 4% this quarter

AsiaOne | Tuesday, Jun 24, 2014

SINGAPORE - Central Provident Fund (CPF) members will continue to earn a interest rate of 4 per cent per annum on their Special and Medisave Accounts (SMA) from July 1 - Sept 30, 2014, said the CPF board on Tuesday. 

It said in a statement that this is in line with the Government's announcement made in Sept 2013 to maintain the 4 per cent per annum floor rate for interest earned on all SMA monies and Retirement Account (RA) monies until Dec 31, 2014.

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 the higher.

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

From June 2013 to May 2014, the average yield of the 10YSGS plus 1 per cent works out to be 3.42 per cent, which is lower than the current floor of 4 per cent, per annum.

As such, CPF members get to enjoy the floor interest rate of 4 per cent per annum for the next quarter of this year. 

maryanns@sph.com.sg

 

 

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