4% interest rate on CPF extended till end 2013
The four per cent minimum interest rate on Central Provident Fund (CPF) savings in the Special, Medisave and Retirement Accounts (SMRA) will be extended until Dec 31 2013.
The one-year extension was made "in view of the continuing uncertainty in the global economy and low interest rate environment", the CPF Board said in a statement on Wednesday morning.
Since Jan 1, 2008, SMRA savings have been invested in Special Government Securities, which earn an interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1 per cent.
The CPF SMRA interest rates will be pegged to that rate from Jan 1, 2014, subject to the statutory floor rate of 2.5 per cent per year that applies to all CPF accounts.