A Singapore press holdings portal

Singapore

Audrey Tan
Friday, Jun 27, 2014

Singapore

CPF Special and Medisave interest rates to stay at 4%

The Straits Times | Audrey Tan | Friday, Jun 27, 2014

CPF Building at Robinson Road.

CPF members will continue to earn the legislated minimum interest rate on their Special and Medisave accounts for the next quarter.

From July 1 to Sept 30, members will earn the risk-free interest rate of 4 per cent per annum on both these accounts, the Central Provident Fund (CPF) Board said in a statement yesterday.

It added that this is in line with the Government's assurance last September that it would maintain the 4 per cent per annum floor rate for interest earned on all monies in the Special, Medisave and Retirement accounts until the end of this year.

Savings in the Special and Medisave accounts earn an interest rate of either 4 per cent per annum or the 12-month average yield of 10-year Singapore Government Securities plus 1 per cent - whichever is higher.

The interest rate on savings in both these accounts is adjusted quarterly, based on interest rates on the 10-year Singapore Government Securities over the preceding 12-month period.

During this period - from last June to May this year - the average yield of the bonds plus the 1 per cent worked out to be 3.42 per cent - lower than the floor of 4 per cent per annum.

So, CPF members will enjoy the floor interest rate for their Special and Medisave accounts for the next quarter.


This article was first published on JUNE 25, 2014.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

No comments yet.
Be the first to post comment.