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

Central Provident Fund (CPF) members will continue to earn an interest rate of four per cent per annum on their Special and Medisave accounts from July 1 to Sept 30, 2014. -- ST PHOTO: KUA CHEE SIONG
Central Provident Fund (CPF) members will continue to earn an interest rate of four per cent per annum on their Special and Medisave accounts from July 1 to Sept 30, 2014. -- ST PHOTO: KUA CHEE SIONG

SINGAPORE - Central Provident Fund (CPF) members will continue to earn an interest rate of four per cent per annum on their Special and Medisave accounts from July 1 to Sept 30, 2014, the CPF Board said on Tuesday.

It said in a statement that this is in line with the Government's announcement in September 2013 to maintain the four 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 four per cent per annum or the 12-month average yield of the 10-year Singapore Government Securities plus one per cent - whichever is higher.

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

From June 2013 to May 2014, the average yield of government investments plus the one per cent works out to be 3.42 per cent - lower than the floor of four per cent per annum.

So, CPF members will enjoy the floor interest rate of four per cent per annum for the next quarter of this year.

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