|CPF Interest Rates (01 Jan 2014 to 31 Mar 2014)|
|Special & Medisave Accounts
|CPF Interest Rates (01 Jan 2014 to 31 Dec 2014)|
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, 1 August 2013 to 31 October 2013, worked out to be 0.21% per annum. As this is below the legislated minimum of 2.50% per annum, the OA interest rate for January 2014 to March 2014 will remain unchanged at 2.50% per annum.
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 average yield of the 10YSGS plus 1% from 1 December 2012 to 30 November 2013 works out to be 2.93%. Accordingly, the SMA interest rate payable to CPF members from 1 January 2014 to 31 March 2014 will be maintained at the current floor of 4%.
Additional Interest of 1%
As part of our efforts to enhance CPF members’ retirement savings, 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 a member is above 55 years old and participates in the CPF LIFE scheme, the additional 1% interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.
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, 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 2014 to 31 December 2014 will be 4%.
Details on how CPF interest rates are computed can be found in News Releases.
CPF Interest Rates 1955 - 2013 (0.08MB)