Interest rate for CPF Special and Medisave Accounts to stay at 4% from April to June
CPF Members will continue to enjoy a risk-free interest rate of 4 per cent on their Special and Medisave Accounts (SMA) from April to the end of June this year.
This is in line with the Government's announcement made in September 2012 to maintain the 4 per cent per annum floor rate for interest earned on all SMA monies and Retirement Account monies until the end of 2013.
Currently, depending on which is higher, savings in the SMA can earn either 4 per cent or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1 per cent.
The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period. From March 1, 2012 to Feb 28, 2013 the average yield of the 10YSGS plus 1 per cent adds up to 2.44%. Hence, the current floor of 4 per cent will be maintained.