4% interest for CPF Special and Medisave accounts and Retirement Account

Singaporeans will continue to enjoy an interest rate of 4 per cent on their Central Provident Fund (CPF) Special and Medisave Accounts from Jan 1 to March 31, and on their Retirement Account from Jan 1 to Dec 31, the CPF board announced on Friday.

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

Additionally, an extra 1 per cent 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.

From Jan 1, the Medisave Required Amount will be adjusted to $40,500 from the current $38,500 and converge with the current Medisave Minimum Sum.

The CPF board will distribute $29million of surplus from its Dependants' Protection Scheme (DPS) to members who had active covers when DPS was privatised on Sept 17, 2005. This rebate will be credited to their CPF Ordinary Account on Dec 15.

Join ST's WhatsApp Channel and get the latest news and must-reads.