CPF Interest Rates (01 Jan 2010 to 31 Dec 2010) (reviewed yearly)
Retirement Account	4.00% p.a.

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.

As announced in December 2009, the Government will maintain the 4% p.a. minimum interest rate on all Special and Medisave Accounts (SMA) and Retirement Account (RA) monies until 31 December 2010. Thereafter, interest rates on all CPF account monies will be subject to a minimum rate of 2.5% p.a.

Since 1 January 2008, savings in the SMA have been invested in Special Government Securities (SSGS) which earn a quarterly-adjusted interest rate pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%.

From 1 January 2010, RA savings are invested in SSGS which earn a fixed coupon equal to the 12-month average yield of the 10YSGS plus 1% at the point of issuance. The interest rate to be credited to the RA will be the weighted average interest of the entire portfolio of these SSGS, and adjusted yearly in January.

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.

For members above 55 years old who are participating in the CPF LIFE scheme, this additional 1% interest will also apply to their annuity premium, less annuity payouts already made. The additional interest earned on the member’s LIFE annuity monies will be paid into their RA.

Under the CPF Act, the Board pays interest at a minimum rate of 2.50% p.a. CPF interest is computed monthly, compounded and credited annually.

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

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CPF Interest Rates 1955 - 2010 (0.01MB)