CPF Members Enjoy 4% Interest Rates on Special and Medisave Account

News Release by:
Central Provident Fund Board
17 March 2014–
CPF members will continue to enjoy a risk-free interest rate of 4% on their Special and Medisave Accounts (SMA) from 1 April 2014 to 30 June 2014.
This is in line with the Government’s announcement made in September 2013 to maintain the 4% p.a. floor rate for interest earned on all SMA monies and Retirement Account (RA) monies until 31 December 2014.
Interest rate for SMA monies
Savings in the SMA currently earn either 4% or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, 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.
The average yield of the 10YSGS plus 1%, from March 2013 to February 2014, works out to be 3.19%. Accordingly, the SMA interest rate payable to CPF members from 1 April 2014 to 30 June 2014 will be maintained at the current floor of 4%.Please refer to Annex A for the 10-year SGS yield.
Background information on other announcements related to CPF Interest rates for SMA and RA moniesAdditional Interest of 1%As part of the government”s efforts to enhance the retirement savings of CPF members, an additional 1% interest will continue to 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 Account (SA) or RA to enhance his retirement savings.  If a member is above 55 years old and participates オンライン カジノ in the CPF LIFE scheme, the additional 1% interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.
Interest Rate for RA Monies
New RA savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4%, whichever is the higher, adjusted yearly.Given the lower 10YSGS yield, new RA savings will earn a fixed coupon of 4% (floor rate).The interest rate to be credited to the RA is the weighted average interest rate of the entire portfolio of these SSGS, and adjusted yearly in January. The weighted average interest of the entire portfolio of these SSGS is 4% at the moment, so the interest rate payable to CPF members on their RA balances from 1 January 2014 to 31 December 2014 is 4%, as announced on 13 December 2013.
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