CPF INTEREST RATES FOR SPECIAL AND MEDISAVE ACCOUNTS FROM 1 APRIL 2011 TO 30 JUNE 2011
	News Release by: Central Provident Fund Board 16 March 2011 --
	The interest rate on Special and Medisave Account (SMA) monies from 1 April 2011 to 30 June 2011 will be maintained at 4%.
	As announced on 20 September 2010, the Government will maintain the 4% p.a. minimum rate for interest earned on all SMA monies and Retirement Account (RA) monies until 31 December 2011. Thereafter, interest rates on all CPF account monies will be subject to a minimum rate of 2.5% p.a.
	Interest Rate for SMA Monies
	Savings in the SMA are invested in Special Singapore Government Securities (SSGS) which earn an interest rate pegged to either the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, or 4% whichever is the higher, adjusted quarterly.
	The average yield of the 10YSGS plus 1%, from 1 March 2010 to 28 February 2011, works out to be 3.42%. Hence, SMA monies will be invested in SSGS which earn 4%. Please refer to Annex A for the 10-year SGS yield. Accordingly, the SMA interest rate payable to CPF members from 1 April 2011 to 30 June 2011 will be maintained at 4%.
	Background information on other announcements related to CPF Interest rates for SMA and RA monies
	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 low 10YSGS yield, new RA savings will be invested in SSGS which 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 2011 to 31 December 2011 will be 4%, as announced on 22 December 2010.
	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.
	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 10-Year SGS from December 2009 to November 2010 2.42% (Note 1) Plus 1% 1.00% Computed Interest Rate Peg (yield of 10-Year SGS + 1%) 3.42%
	Note:
	1. Source: Yields of 10-Year Singapore Government Securities are obtained from www.sgs.gov.sg
	10-Year SGS Yield from March 2010 to February 2011