CPF MEMBERS ENJOY 4% INTEREST RATES ON SPECIAL AND MEDISAVE ACCOUNTS FROM 1 JULY 2012 TO 30 SEPTEMBER 2012
	News Release by: Central Provident Fund Board 15 June 2012 --
	CPF members will continue to enjoy a risk-free interest rate of 4% on their Special and Medisave Accounts (SMA) from 1 July 2012 to 30 September 2012.
	This is in line with the Government’s announcement made in September 2011 to maintain the 4% p.a. floor rate for interest earned on all SMA monies and Retirement Account (RA) monies until 31 December 2012.
	Interest rate for SMA monies
	Savings in the SMA currently earn either 4% or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, whichever is the higher. The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period.
	The average yield of the 10YSGS plus 1%, from 1 June 2011 to 31 May 2012, works out to be 2.72%. Accordingly, the SMA interest rate payable to CPF members from 1 July 2012 to 30 September 2012 will be maintained at the current floor of 4%. Please refer to Annex A for the 10-year SGS yield.
	Background information on other announcements related to CPF Interest rates for SMA and RA monies
	Additional Interest of 1%
	An additional 1% 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 (OA). The additional interest received on the OA will go into the member’s SA or RA to enhance his retirement savings. If the member is above 55 years old and participates in the LIFE scheme, the additional 1% interest will also be payable on his annuity premium, less annuity payouts already made. The additional interest earned on the member’s LIFE annuity monies will be paid into his RA.
	Interest Rate for RA Monies
	New RA savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4%, whichever is the higher, adjusted yearly.
	Given the lower 10YSGS yield, new RA savings will earn a fixed coupon of 4% (floor rate). The interest rate to be credited to the RA is the weighted average interest rate of the entire portfolio of these SSGS, and adjusted yearly in January. The weighted average interest of the entire portfolio of these SSGS is 4% at the moment, so the interest rate payable to CPF members on their RA balances from 1 January 2012 to 31 December 2012 will be 4%, as announced on 19 December 2011.
	Public Enquiries For more information, please visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188.
	Annex A
	Computation of Interest Rate Peg Average yield of 10YSGS from June 2011 to May 2012 1.72% (Note 1) Plus 1% 1.00% Computed Interest Rate Peg (yield of 10-Year SGS + 1%) 2.72%
	Note:
	1. Source: Yields of 10-Year Singapore Government Securities are obtained from www.sgs.gov.sg
	10-Year SGS Yield from June 2011 to May 2012