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News Release by:
Central Provident Fund Board
12 March 2009 -- |
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Since 1 January 2008, interest rate for savings in the Special, Medisave and Retirement Accounts (SMRA) has been pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%. The average yield of the 10YSGS over one year, from 1 March 2008 to 28 February 2009, plus 1% worked out to be 3.69%. |
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To help CPF members adjust to the floating SMRA rate, the Government will maintain the 4% floor rate for two years, from 1 January 2008 to 31 December 2009, if the 10YSGS yield plus 1% is below 4%. After 31 December 2009, the 2.5% floor rate will apply for all CPF accounts. |
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Hence, the SMRA interest rate from 1 April 2009 to 30 June 2009 will be 4% (floor rate). |
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Additional Interest of 1%
An additional 1% interest will 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 or Retirement Account to enhance his retirement savings. |
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The CPF interest rate will continue to be reviewed quarterly. Improving returns on CPF savings is one of the key changes introduced to help Singaporeans improve their retirement adequacy. |
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For the computation of the CPF interest rate for SMRA and the 10-year SGS yield, please refer to Annex A. |
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| Public Enquiries
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| For more information, please visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188. |
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| Computation of Special, Medisave and Retirement Accounts (SMRA) Interest Rates for April to June 2009 |
| Average yield of 10-Year SGS from Mar 08 to Feb 09 |
2.69% (Note 1) |
| Plus 1% |
1.00% |
| Computed SMRA Interest Rate for Apr 09 to Jun 09 |
3.69% |
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SMRA Interest Rate (Apr 09 to Jun 09)
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4.00% (Note 2) |
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Note: |
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1. Source: Yields of 10-Year Singapore Government Securities are obtained from www.sgs.gov.sg |
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2. A floor of 4% for the SMRA rate will be maintained for two years from 1 January 2008 to 31 December 2009. After 31 December 2009, the 2.5% floor rate will apply for all CPF accounts. |
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10-Year SGS Yield from March 2008 to February 2009
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