CPF Interest Rates (01 Jan 2012 to 31 Dec 2012) (reviewed yearly)
Retirement Account	4.00% p.a.

Interest Rate for Ordinary Account Monies

For Ordinary Account (OA), CPF members receive a market-related interest rate based on the 12-month fixed deposit and month-end savings rates of the major local banks.

The computed CPF interest rate, derived from the major local banks’ interest rates for the three-month period, 1st August 2011 to 31st October 2011, worked out to be 0.31% per annum. However, members will receive the higher rate of 2.50% as legislated by the CPF Act.

Interest Rate for Special and Medisave Account Monies

Savings in the Special and Medisave Account (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 12-month average yield of the 10YSGS plus 1%, from 1st December 2010 to 30th  November 2011, works out to be 3.19%. Accordingly, the SMA interest rate payable to CPF members from 1st January 2012 to 31st March 2012 will be maintained at the current floor of 4%.

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 Retirement Account Monies

New Retirement Account (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 1st January 2012 to 31st December 2012 will be 4%.

Details on how CPF interest rates are computed can be found in News Releases.

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CPF Interest Rates 1955 - 2011 (0.01MB)